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Capitalism: Begun the Trade War has
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  • European Union negotiators finalized the terms of a historic investment agreement with China. Seven years in the making, the new Comprehensive Agreement on Investment is expected to grow international trade between the EU and China, facilitate cross-border investment, and "strongly stimulate" the economies of both nations, according to Chinese president Xi Jinping.

    Strong rumors is that in exchange China will dump from 1.5 to 2 trillion USD into Europe debt market. China has no other option but to sign this agreement as refusal to do so will mean end of Chinese mobile industry in EU, as well as end of Chinese ambitions of independent silicon industry.

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  • The Asia Times reported on Beijing's new legislative initiative. According to the source, the new order is planned to be ratified by the newly appointed Minister of Commerce of China Wang Wentao. The essence of the innovation is that Chinese companies will have a legal way to influence foreign companies that have damaged them as a result of restrictions imposed by third countries. The situation is best illustrated by the history of the US sanctions against Huawei. TSMC has stopped supplying the Chinese customer with HiSilicon processors, although it itself is subject to the jurisdiction of Taiwan, not the United States.

    The new by-law will allow Chinese companies to recover damages from foreign partners, as well as force them to resume cooperation.

    TSMC is vulnerable to Chinese laws. First, the company receives approximately 22% of its total revenue from Chinese customers. Secondly, it has enterprises on the territory of the PRC and has planned to expand them so far.

  • The Pentagon has blacklisted Xiaomi and added to special list of Chinese firms. This is reported by Reuters with reference to the updated list of US authorities.

    According to the publication, a total of nine Chinese legal entities, which, according to Washington, are associated with the military industry of the PRC, fell under the new restrictions. These include one of the world's largest smartphone manufacturers, Xiaomi.

    It is noted that these companies will be subject to the decree of US President Donald Trump banning American investments in military-related Chinese firms.

    Finally... Next steps to follow.

  • US President Joe Biden has pledged not to get involved in trade wars with China, as his predecessor Donald Trump did, and instead to compete with the world's second largest economy under international rules, writes CNBC.

    According to Biden, there should be competition between the two countries that does not escalate into conflict. The new president also noted that he knows Chinese President Xi Jinping well, although he has not yet met with him as head of state. “He's very smart and cool. I am not saying this as a criticism, but in his body it is as if there is no bone in charge of democracy, " - Biden said.

    I have extreme deja vu, as it is all the same before first round of trade war started.

  • As noted by the Nikkei Asian Review, Joseph Biden expressed his dissatisfaction with China's position in several regions, including Tibet, populated mainly by Uighurs in Xinjiang, as well as Hong Kong and Taiwan. In the first two, according to the US authorities, the Chinese administration oppresses local residents, and in the last two it does not recognize the right of citizens to self-determination, considering these territories their own.

    According to Reuters, the new US authorities are not going to cancel the trade tariffs that the previous administration introduced; their revision will be possible only after detailed consultations with America's allies in the foreign trade sphere. With regard to the export of technology to China, the position of the new US authorities is categorical - we must not allow military technologies to fall into the hands of Chinese military, which will make them stronger. Export control restrictions should be targeted, as well as negotiated with US foreign policy allies.

    His successor has only one comment about the actions of the former US president: he imposed sanctions against China at his sole discretion, without taking into account the interests of other countries.

    Materialism rules!