Chinese authorities have warned foreign companies not to put Chinese firms in technology, warned about the serious consequences. According to the American newspaper The New York Times, June 4-5, held a closed meeting of Chinese officials and business representatives, where before they had conveyed this warning.
The publication reports that the meeting was attended by representatives of the us, Microsoft and Dell, the British ARM of South Korean Samsung Electronics and Hynix. The Chinese side was attended by representatives of the national Commission for development and reform Commission, the Ministry of Commerce and Ministry of industry and Informatization of the country. The NYT notes that the high level representatives indicates that this meeting was sanctioned by the highest leadership of China.
“Now this is an extremely delicate step, because the administration of trump, using the tactics of balancing on the brink of war destabilized all relationships: commercial and other,” said senior Advisor to the Center for strategic and international studies Scott Kennedy.
On the same day it became known about negotiations on the sidelines of the Ministerial meeting of the countries “the twenty” in Japan between the Secretary of the Treasury Stephen Mucinum with the head of the people’s Bank of China (Central Bank) And Gunn.
“Had a constructive meeting with the head of the people’s Bank of China And Gan, in which we had a Frank discussion on trade issues,” wrote Mnuchin in his Twitter.
Note that Mnuchin told reporters that he does not put before itself specific goals that during the meeting the sides will discuss the financial, economic and trade issues, but this meeting is “not negotiating”. He also made it clear that much of the progress in the trade negotiations can only be achieved at the forthcoming meeting of the US President Donald trump and Chinese President XI Jinping on the sidelines of the G20 summit.
It is worth noting that many experts here are very skeptical.
“The leaders of China and the United States will meet at the end of next month in Japan, and I think there will be some positive news,” said in late may, the newspaper South China Morning Post, an influential government expert, former Chairman of the people’s Bank of China Let Sarlona. However, he expressed pessimism and doubt in the possibility of achieving at this stage of the breakthrough in the settlement of trade disputes between countries.
We will remind, after 16 may, the Ministry of Commerce of the United States said China’s Huawei and 70 of its branches in the black list, a number of us companies including Google, Intel, Qualcomm, Xilinx, and Broadcom announced the termination of cooperation with Chinese giant. Also the cooperation with Huawei ceased British company ARM, the world’s leading manufacturer of mobile chips.
One fact to begin with. About 50% of world reserves of rare earth metals without which the production of electronics just stops located in China — recalls the Deputy Director of the National Institute of modern ideology development Igor Shatrov.
— That is, China has to show that the argument of transnational IT corporations, the headquarters of which are located in the United States. But China has long been not only a source of raw materials and world factory. This intellectual center, where he developed the most advanced technology. For example, it fell under us sanctions Huawei is a leader in the development of 5G technologies. American AT&T and Cisco, which are also involved in the development of networks of the 5th generation, more than a year to catch up with the Chinese. If this was the main reason for the pressure on Huawei?
“SP”: — How is it to understand such warnings? China decided in the Wake of America to adopt the tactics of threats? Or he has nowhere to go?
— Such behavior is China really forced. And Beijing is necessary to remind Washington that China also has its own interests and, most importantly, opportunities for their implementation.
“SP”: — How will the company react? They, it turns out, between two fires…
— I think the question of relations with China will soon be the subject of the political agenda. After new presidential elections in the United States. Summing up the result of four years of trump, that part of the business that supports his ideas for the reconstruction of the world economy, will have to decide how much trump’s methods are effective. So the talks between the Chinese American business — it really talks to what extent and with sponsors of the next presidential campaign.
“SP”: — what’s trump? Than answer it?
— Trump ate a bit. But we have already seen that he finds the strength to give up the fight, if he sees the futility of it. Much now depends on the actions of China. If Beijing will go to the end and in addition mirror the response preemptively strike the weak spots of the US, Washington would back down and the situation may stabilize.
“SP”: — it is Reported that the head of the US Treasury met with President of the people’s Bank of China. Is it possible to say that both sides do not want war and focuses on the dialogue?
— Us Treasury no coincidence fuss. And it’s not just in trading fees. US government debt is another ACE in the hole China. China owns us bonds worth more than $ 1.1 trillion, as the largest foreign holder. The Chinese dumping us treasuries are able to bring down the world financial system. You know, I sometimes thought that this rebooting of the modern economy, entangled in virtual money, and necessary. However, the exit is inevitable in this case, the global financial crisis may take many years.
“SP”: — What are you expecting from the talks trump and President XI Jinping in Japan? Will there be progress?
— To predict the actions of the tramp — a thankless task. But one thing is clear: in a series of trade wars, the United States almost all over the world, the global economy was on the brink of disaster. I think trump realizes this and is looking for a pretext to slow down.
— China in the current situation is extremely careful, — said the Executive Director of the International monitoring organization CIS-EMO Stanislav Bychok.
— He blames no one and threatens no one, only informs his partner that the difficulties in relations between Beijing and Washington will affect them. Not that partners did not understand, but Beijing have organized such a meeting, to demonstrate their concern about what is happening and, simultaneously, respect for the interests and concerns of those companies that are faced with a difficult choice.
“SP”: — What can be promised effects?
— Obviously, we are talking about the closure, complete or more likely partial to Chinese markets. Therefore, we are talking about a serious reduction of profits.
“SP”: — will give any results? What choose the company caught in the middle?
— In the first approximation, of course, the choice is made in favor of the United States. However, there is an understanding that the trade confrontation between the two great powers, at least in the acute form, a temporary phenomenon, and pretty soon Washington will soften its position, so the choice between the two fires will cease to be relevant.
“SP”: — How it might respond to the U.S. government?
— In this case from the USA some reaction hardly wait. Washington is the conviction that the world from America is not going anywhere, and theses on the celebration of multi-polarity are still at the level of conversation. Of particular concern is that between the US and China someone will choose China, Washington not observed.
“SP”: — How far can you think to enter a trade war? What they in the end can lead?
After these two world wars and one imaginary (cold) life was so peaceful and provided an excessively large value began to give to the slowdown in the economy or a routine trade-contradictions, which — in terms of a happy lack of prospects “real” wars between great powers — came to be called trade wars.
— The current situation is as follows: strengthened China decided that to be a “world forge” has little, should threaten on the bigger. US new China’s ambition is not satisfied, therefore, applied non-market methods of eliminating competition. Data on whether China is now the possibility to someonespecial yourself all those products are computer equipment, which he imported vary. However, the situation sudden stop of Chinese growth also, no one seriously considers. In the end, China can import technology, but high-paying Western frames that these technologies will be able to develop in the Chinese territory and an exclusive for China.
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