Why Blacklisting Huawei Could Backfire.Argues that China has a track record of ‘indigenous innovation’, especially when cut off from international technologies. For example, China has developed atomic bombs, satellites, and super-computers all after being shut off from technical support from foreign superpowers. Had the US not cut China off, then perhaps China would have remained dependent on US tech.
Warner, Rubio Warn Trump Admin Against Using Huawei as Bargaining Chip in Trade Negotiations. An official statement by key Republican senators that they would not support President Trump softening his stance on Huawei in return for a trade deal. This neatly contrasts the positions of both the US establishment and Trump on China. The former sees the situation in Cold War terms, while Trump sees China through tariffs and trade balance terms.
China Deepens Global Finance Links as It Joins Benchmark Indexes.IMF estimates around $150 billion of inflows by 2020 due to recent Chinese bond inclusion in Bloomberg Barclays Global Agg. Moreover, likely inclusion in FTSE and JPMorgan indices could be as much as $450bn inflows over the next year or two.
Is China’s concern over a possible US dollar shortage risk forcing companies to sell overseas assets?China’s need for US dollars to repay debts, pay for imports and fund Belt and Road initiative projects may exceed its $3.1 trillion in foreign exchange reserves. Anbang Insurance Group, Dalian Wanda Group, and HNA Group have all been pressured to sell assets amid the trade war with the US. This suggests that China’s earlier push to expand overseas direct investment is drawing to a close – at least outside of Belt and Road Initiative projects.
A year ago, China’s electric vehicle sales grew 126%. Now they’re at 2%. This is due to weak economic growth and fewer subsidies. China was once top for electric vehicle demand, but it now looks like it is flagging.
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