Even before U.S. and Chinese officials were sitting down this week for a second round of high-level trade talks in Washington, both sides signaled a willingness to try and make a deal or at least meet the other halfway. Whether or not that will be enough to get them across the finish line remains to be seen, analysts say. Ahead of the talks, President Donald tweeted that China has "been making hundreds of billions of dollars a year from the U.S., for many years. Stay Tuned!" Late last week at a forum sponsored by the Center for Strategic and International Studies in Washington D.C., Chinese Ambassador Cui Tiankai signaled China's willingness to address a range of issues from the deficit to the protection of intellectual property rights. Deficit detente Cui said that while it is overly simplistic to say trade deficit means loss and surplus means gain, there is a clear need for better macroeconomic coordination between the two countries. "A huge deficit for you and a huge … [Read more...] about US China Sending Signals, But is Trade Deal Close?
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Hong Kong (CNN Business) China and the European Union rang in the new year by striking a major investment deal intended to strengthen their trade ties. A contentious spat over human rights could now doom the agreement. The European Union joined the United States and United Kingdom this week in punishing Chinese officials with sanctions over alleged human rights abuses in the country's Xinjiang region. Beijing fired back with sanctions of its own on 10 EU politicians, including members of parliament and four entities, for "maliciously spreading lies." Valdis Dombrovskis, the European Union trade commissioner, said the fate of the investment agreement, which has not yet been ratified by the European Parliament, is now in doubt. "China's retaliatory sanctions are regrettable and unacceptable," Dombrovskis told the Financial Times in remarks confirmed by his spokesperson. "The prospects for ... ratification will depend on how the situation evolves." … [Read more...] about China may just have doomed its trade deal with Europe
Hong Kong (CNN Business) Wine and wheat. Lobsters and logs. Beef and barley. If Australia exports it, China has likely put up barriers to entry over the past year, as diplomatic relations between the two countries rapidly deteriorated. Now, one commodity is almost single-handedly keeping the trade relationship afloat: iron ore. Australia is the world's largest producer of iron ore, mining more than 910 million metric tonnes in the 2019-2020 financial year, according to the Australian government, almost twice as much as its nearest competitor Brazil. Iron ore is a vital component in the production of steel, and with China embarking on a $500 billion infrastructure spending spree to help the economy recover from the pandemic, Beijing's need for it has never been greater. Diplomatic relations between Australia and China fell into a deep chill one year ago, after Prime Minister Scott Morrison called for an independent investigation into the … [Read more...] about Iron ore is saving Australia’s trade with China. How long can it last?
The European Union has apparently suspended efforts to ratify a massive trade deal with Communist China following intense backlash on issues such as human rights and a series of tit-for-tat sanctions. In December, the European Commission signed in principle the EU-China Comprehensive Agreement on Investment (CAI), which would have paved the way for some €120 billion in trade. The deal was preliminary, however, as it would have required ratification from the European Parliament and the governments of EU member states. EU Commission Vice President Valdis Dombrovskis told the AFP news agency on Tuesday that the Commission has abandoned attempts to ratify the deal. “It’s clear in the current situation with the EU sanctions in place against China and Chinese counter-sanctions in place, including against members of European Parliament (that) the environment is not conducive for ratification of the agreement,” Dombrovskis said. “We now in a sense have suspended… political … [Read more...] about European Union Backtracks on Massive Trade Deal with Communist China
New York (CNN Business) Peloton is estimating its treadmill recall will cost the company about $165 million in lost revenue during the the current quarter, and result in a $16 million hit to its profits. After weeks of fighting a call by federal safety regulators to recall its Tread and Tread+ treadmills tied to one infant death and reports of 70 injuries , the company admitted Wednesday it had made a mistake and would recall the product . On Thursday evening, it told investors how much it would cost its top and bottom line. CEO John Foley again apologized for not moving sooner to agree to the recall, and admitted that the company's reputation had been damaged by the recall dispute. "We feel like we have some work to do to get back on the right side of the line with trust and safety, and let people know what we stand for," he told analysts. "I think yesterday was a big day in mending trust and telling the market and our consumers and our members that … [Read more...] about Peloton recall to cost company $165 million in lost sales