The Covid-19 pandemic is not expected to prevent China from being the only economic power to experience positive growth in 2020. At least that is what caused the sharp rise in GDP in the third quarter. But the reliability of these data is questioned, suggesting a willingness of the Chinese authorities to take liberties with the economic reality as Beijing prepares its new five-year plan. These good results support the official rhetoric of the regime, which has repeatedly praised the resilience of the Chinese economy despite a very violent initial shock (a drop in GDP of 6.9% in the first quarter). These figures also seem to validate the policy pursued by Chinese leader Xi Jinping, who imposed draconian measures at the start of the year to contain the spread of the coronavirus in his territory. As related to US companies with Chinese operations, the article states “U.S. multinationals’ majority-owned affiliates in China brought in sales of $392.7 billion in 2018, up 4.8% from a year ago, according to the latest available data from the U.S. Bureau of Economic Analysis.” How do you think that disparity in economic recovery is going to affect multinational companies with China operations?
Showing posts with label China. Show all posts
Showing posts with label China. Show all posts
Monday, November 16, 2020
U.S. companies with China operations look to the Asian giant for growth
The Covid-19 pandemic is not expected to prevent China from being the only economic power to experience positive growth in 2020. At least that is what caused the sharp rise in GDP in the third quarter. But the reliability of these data is questioned, suggesting a willingness of the Chinese authorities to take liberties with the economic reality as Beijing prepares its new five-year plan. These good results support the official rhetoric of the regime, which has repeatedly praised the resilience of the Chinese economy despite a very violent initial shock (a drop in GDP of 6.9% in the first quarter). These figures also seem to validate the policy pursued by Chinese leader Xi Jinping, who imposed draconian measures at the start of the year to contain the spread of the coronavirus in his territory. As related to US companies with Chinese operations, the article states “U.S. multinationals’ majority-owned affiliates in China brought in sales of $392.7 billion in 2018, up 4.8% from a year ago, according to the latest available data from the U.S. Bureau of Economic Analysis.” How do you think that disparity in economic recovery is going to affect multinational companies with China operations?
Tuesday, September 15, 2020
WTO finds Washington broke trade rules by imposing tariffs on China
https://www.reuters.com/article/us-usa-trade-china-wto/wto-finds-washington-broke-trade-rules-by-imposing-tariffs-on-china-idUSKBN2662FG
The punitive tariffs imposed on China by the Trump administration in 2018 violated international trade rules according to the World Trade Organization ruling this Tuesday. Washington immediately reacted by deeming the WTO "inadequate" to settle this issue. The members of the panel considered that the measures used by President Donald Trump, who denounced in particular a forced technology transfer to access the Chinese market, violates several rules of the institution. The additional taxes of 25% and 10% on the importation of certain Chinese goods exceed the maximum tariffs accepted by the United States on these products within the framework of the WTO. Also, the members of the panel believe that the arguments given by the United States to justify this 'protectionist' approach do not allow an exception to its multilateral trade agreements. Last year however, Washington and Beijing reached a first agreement to calm the situation. This new ruling has now obviously angered the administration and created a lot of tension which leads me to question whether Trump will see this as an opportunity to quit the organization given that he is already very critical of multilateral institutions.
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