Category Archives: Global economy

China warns US: criticism of Uighur detentions is not ‘helpful’ for trade talks

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Beijing voices anger over ‘gross interference’ after 23 countries criticise arbitrary detentions in Xinjiang

China’s UN envoy has sounded a warning note over trade talks with Washington after the US joined 22 other countries at the UN in criticising Beijing over the detention of ethnic Uighurs and other Muslims.

China has been widely condemned for setting up internment camps in the western region of Xinjiang that it describes as “vocational training centres” to stamp out extremism and give people new skills. The United Nations says at least a million Uighurs and other Muslims have been detained.

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It’s time to boycott any company doing business in Xinjiang | Michael Caster

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Forced labour in China’s internment camps taints the supply chains of many western companies. We need to take action

Any western company doing business in Xinjiang should consider their supply chains tainted by forced labour drawn from internment camps. Hardly a drop in the ocean of the vast global economy, this involves companies such as Ikea, H&M, Volkswagen and Siemens.

This month, the United States banned the import of products made by a firm in Xinjiang over its use of forced labour. It also blacklisted 28 Chinese entities for their role in the repression of Uighurs and issued visa restrictions on key Chinese officials. Following suit, two major Australian companies have now also announced they are ending partnership with their cotton supplier in Xinjiang.

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China overtakes US in rankings of world’s richest people

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Credit Suisse survey shows Brexit effect has reduced number of UK millionaires by 27,000

The number of wealthy Chinese people has overtaken the number of rich Americans for the first time, according to a report by Credit Suisse.

The bank’s annual wealth survey found there were 100 million Chinese people among the world’s top 10% of richest people, compared with 99 million in the US.

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US delays China tariff increase as Trump claims ‘substantial’ deal

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  • US had planned to raise tariffs on $250bn of goods to 30%
  • Trump: ‘All would like to see something significant happen!’

Donald Trump announced a “very substantial phase one deal” to solve the long-running trade dispute with China.

After a two-day meeting in Washington between US and Chinese officials on Friday Trump announced a delay on plans to raise tariffs on $250bn worth of goods to 30% on 15 October.

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Former world leaders warn US-China trade dispute could lead to new cold war

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Kevin Rudd is among a coalition of former leaders who have urged the US and China to settle their differences

The ongoing trade war between the US and China, with its associated decoupling of the two powerhouse economies, was a step in the direction of a new cold war, a coalition of former world leaders has warned.

Writing on behalf of the global leadership foundation in an opinion piece published in the New York Times overnight, former prime ministers Kevin Rudd of Australia, Helen Clark of New Zealand and Carl Bildt of Sweden have urged presidents Donald Trump and Xi Jinping to end their trade dispute for the sake of the world at large.

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Trump’s trade tactics imperil the jobs of those who might vote for his second term

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The only tool he has to placate US consumers is successive interest rate cuts – but the whole world is playing at that game

Donald Trump’s cunning plan to make America great again by launching a trade war with China has officially backfired. Last week, a keenly watched measure of US manufacturing showed firms cutting back on production and jobs at a rate not seen since 2009. Recession warning lights are flashing and the outlook seems a world away from the cheery one presented by the president when he entered the White House in 2017.

It is quite something for a president to impose a trade policy that weighs heavily on parts of a crucial sector for the US economy – and it’s a bizarre tactic given that the votes of manufacturing workers delivered him his first term in office.

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‘Tone deaf’ ads use slave ship images to promote UK sea-going sector

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Campaign accused of ignoring colonial abuses when setting out maritime industries’ future

Historians and academics have labelled a new government campaign “tone deaf” and “historically illiterate” for using images of ships used for slavery and colonisation to promote Britain’s maritime sector.

The UK has a long history with commercial shipping, reaching as far back as 1700 ⚓️
 
Our #Maritime2050 plan maps out the next 30 years of innovation. Find out more https://t.co/VqYPNw300C #LISW19 pic.twitter.com/0Olw3gk2F8

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US and China begin imposing new tariffs as trade war escalates

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Chinese exports worth $125bn will face new taxes from 1 September, while China places levy on oil as agreement becomes more distant

China and the United States have begun imposing additional tariffs on each other’s goods in the latest escalation of their bruising trade war that has sent shockwaves through the global economy.

A new round of tariffs took effect from 0401 GMT on Sunday, with Beijing’s levy of 5% on US crude oil marking the first time the fuel has been targeted since the world’s two largest economies started their trade war more than a year ago.

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The IMF is hurting countries it claims to help | Mark Weisbrot

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The fund browbeats poor countries into accepting neoliberal measures that exacerbate inequality and economic distress

When people think of the damage that wealthy countries – typically led by the US and its allies – cause to people in the rest of the world, they probably think of warfare. Hundreds of thousands of Iraqis died from the 2003 invasion, and then many more as the region became inflamed.

Related: Brexit: EU ‘would block trade deal if Britain reneged on bill’

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Shares across Asia fall sharply amid US-Chinese trade tensions

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Investors seek safe havens such as US treasuries and gold as the superpower standoff shows no sign of being resolved

Shares in Australia and across Asia Pacific have fallen sharply amid a new flare-up of US-Chinese trade tensions.

Despite a senior Chinese leader saying Beijing wanted to resolve the dispute with “calm negotiations”, indices were deep in the red on Monday.

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The west takes its eyes off Africa at its peril | Larry Elliott

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The G7 thought it had solved Africa’s problems, but rising child poverty is a ticking time bomb

Time was when Africa dominated gatherings of the G7. In the period between two summits held in the UK – Birmingham in 1998 and Gleneagles in 2005 – the talk was of little else. There was public activism and it led to political action.

In part, that was because the big developed countries were enjoying a spell of low-inflationary growth and could look beyond their own problems to see a bigger picture. There was the occasional financial panic, but the G7 thought the problems of economic management had largely been solved and all that was needed was a bit of tinkering by technocratic central bankers.

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Macron hopes to convince G7 leaders to halt trade war and heal divisions

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French president Emmanuel Macron has said he hopes to convince world leaders to pull back from trade war and heal growing divisions at the G7 summit in Biarritz, despite signs that will be a daunting task.

Related: Boris Johnson prepares for Biarritz balancing act with Donald Trump

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Here are the reasons for Trump’s economic war with China

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On Friday the US president ‘hereby ordered’ companies to halt business with China, among other attacks – how did we get here?

Even by Donald Trump’s standards his Twitter rant attacking China on Friday was extraordinary. In a series of outbursts Trump “hereby ordered” US companies to stop doing business with China, accused the country of killing 100,000 Americans a year with imported fentanyl and stealing hundred of billions in intellectual property.

The attack marked a new low in Sino-US relations and looks certain to escalate a trade war already worrying investors, manufacturers and economists who are concerned that the dispute between the two economic superpowers could trigger a recession.

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China puts $75bn of retaliatory tariffs on US goods

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Move puts additional 5% and 10% on imports in latest tit-for-tat between top two economies

China has unveiled retaliatory tariffs against about $75bn (£60bn) worth of US goods, putting up to 10% on top of existing rates in the latest tit-for-tat in the dispute between the world’s top two economies.

The salvo from China on Friday comes after the US unveiled tariffs on an additional $300bn of Chinese goods, including consumer electronics, scheduled to go into effect in two stages on 1 September and 15 December.

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France and Ireland declare opposition to trade deal over Amazon fires

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Brazil’s handling of forest fires set to top agenda of G7 countries at meeting in Biarritz this weekend

Amazon fires: what is happening and is there anything we can do?

France and Ireland have said they will oppose an EU trade deal with South American countries unless Brazil takes action to stop the burning of the Amazon.

On the eve of a meeting of the G7 nations in Biarritz, an Élysée source said Emmanuel Macron thought Brazil’s president, Jair Bolsonaro, “lied” to him at the G20 meeting in Osaka in June about his climate commitments and therefore France would oppose the Mercosur treaty.

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What’s in our water? Report warns of growing ‘invisible’ crisis of pollution

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Climate emergency and population growth blamed for deteriorating water quality, with ‘cocktail of chemicals’ changing as countries become richer

The planet is facing a mounting and “invisible” water pollution crisis, according to a hard-hitting World Bank report, which claims the issue is responsible for a one-third reduction in potential economic growth in the most heavily affected areas.

The study, which assembled the world’s largest database of water pollution, assesses how a combination of bacteria, sewage, chemicals and plastics suck oxygen from water supplies and transform water into poison for people and ecosystems.

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Germany likely to head into recession, central bank warns

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Bundesbank says summer’s slump in exports is expected to continue into the autumn

Germany’s economy is heading into recession after the country’s central bank warned that a slump in exports during the summer was likely to continue into the autumn.

The Bundesbank said a downturn in orders for cars and industrial equipment in the second quarter of the year was likely to continue in the third quarter, leaving the economy on the brink of a technical recession, defined as two consecutive quarters of negative GDP growth.

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Markets jittery as trade war and recession worries spook investors -as it happened

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Beijing has alarmed investors by threatening counter-measures against the US, threatening to escalate the trade war

Earlier:

Update: Britain’s FTSE 100 has hit a new six-month closing low.

The blue-chip index just closed 80 points lower at 7,067, a drop of 1.1%.

Time for a quick recap

Financial markets remain volatile today, as fears of an economic downturn hit stock prices and drive bond prices to new record highs.

Related: Online shoppers and Amazon Prime Day lift UK retail sales

If President Xi would meet directly and personally with the protesters, there would be a happy and enlightened ending to the Hong Kong problem. I have no doubt! https://t.co/eFxMjgsG1K

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Branding cheese as feta and gruyere may be banned in Australia under EU deal

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The trade minister, Simon Birmingham, has released a list of food products the EU wants protected as ‘geographical indicators’

Australia is gearing up for a fight with the European Union over the naming of hundreds of products including feta, gruyere and scotch beef as negotiations continue over an “ambitious” free trade agreement.

The trade minister, Simon Birmingham, has released a list of names the EU wants protected as part of the new trade deal – known as “geographical indications” or GIs – which are aimed at protecting European products.

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Trump hints he is ready to dig in for long US-China trade war

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Tweet in support of US farmers suggests dispute with Beijing could extend well into 2020

Donald Trump has dropped the broadest possible hint that he is ready to dig in for the long term in the Washington’s trade war with China, after the latest escalation in the long-running dispute between the world’s two largest economies.

The US president said he was ready to provide support for US farmers in 2020 should they face pressure from China, as economists at Goldman Sachs said the standoff could continue until after the US presidential election in November 2020.

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