The US economy did pretty well during the Cold War. Per capita GDP rose by 150% in real terms from the end of World War Two through the collapse of the Soviet Union, with the stock market notching a similar inflation-adjusted performance. And when the long twilight struggle was over, America was on the verge of a historic productivity surge and technological advance.
As the China-U.S. trade talks resume in Shanghai, with President Trump warning President Xi that there will be consequences if China tries to “wait Trump out” until next year’s U.S. presidential election, the key question is whether there is a path to reengagement and some normalcy over trade relations—or whether a new trade cold war, with an ultimate decoupling of the two economies, is the inevitable endgame.
Apple Inc. has asked the Trump administration to exclude components that make up the forthcoming Mac Pro high-end desktop computer from import tariffs, weeks after planning to re-locate production of the line to China from Texas.
The tariffs that President Donald Trump has slapped on Chinese imports haven't sparked the widespread return of manufacturers to the U.S. that Trump envisioned. About 41% of American companies are considering moving factories from China because of the trade war, or have already done so, but fewer than 6% are heading to the U.S., the American Chamber of Commerce in China said in a recent survey.
“Huge amounts of capital and talent are going to be thrown at building self-reliance and establishing a kind of parallel ecosystem here without dependence on U.S. chips, operating systems,” said Ben Harburg, managing partner of MSA Capital, a Beijing-based venture capital firm. “The rationale is that this moment created demand. Previously, it didn’t have demand for those Chinese chips...
Sen. Rick Scott (R-Fla.) said Tuesday that he does not believe President Trump will be able to strike a trade deal with China, particularly if Chinese telecom firm Huawei is involved. After a months-long stalemate, Trump announced this week that talks with Beijing had resumed with a goal of striking tariffs and resuming more open trade, but Scott, a former Florida governor, called Huawei a non-starter.
Global markets have rallied on the re-ignition of trade talks between the U.S. and China after President Donald Trump and President Xi Jinping’s meeting at the weekend, but analysts say China is already adapting to the changing business landscape and that trade (and particularly, technological) relations will never be the same again.
As part of the continuing trade negotiations, the issue of Huawei would be saved until the end of the trade talks, with President Trump saying, We’ll have to save that to the very end, we’ll have to see.” In other words, the question of lifting the ban on Huawei selling its products, which include smartphones, laptops and communications infrastructure technologies, to the U.S. has not been changed.
Ahead of a high-stakes meeting Saturday with Chinese President Xi Jinping, President Trump has expanded a new battle front with Beijing and other leading U.S. foes: a technology war.
In this rule, the Bureau of Industry and Security (BIS) amends the Export Administration Regulations (EAR) by adding five entities to the Entity List. These five entities have been determined by the U.S. Government to be acting contrary to the national security or foreign policy interests of the United States. These entities will be listed on the Entity List under the destination of China. This rule also modifies one entry on the Entity List under the destination of China.