Begun, the trade war has. The Trump administration’s 25 percent tariffs on $34 billion worth of Chinese goods—hitting everything from industrial machinery to consumer goods such as televisions—went into effect Friday morning, prompting threats of an immediate response from the Chinese government, which also promised to haul the United States in front of the World Trade Organization. “In order to defend the core interests of the country and the interests of the people, we are forced to retaliate,” the Chinese Commerce Ministry said in a statement shortly after the tariffs took effect.
So Huawei is both flourishing and perishing, depending on the geography you look at. The Chinese company is both the darling of major pan-European carrier networks like Telefónica, Deutsche Telekom, and Vodafone — and the untouchable pariah for US operators wary of its potential links to international espionage. There’s an obvious dissonance between these two positions, and I find it notable that Germany and the UK both rely heavily on Huawei for networking equipment. The first is a country famous for being extremely scrupulous about consumer privacy and data security, and the second is America’s closest political ally. At this point, it feels like US spy agencies have to either put up concrete allegations and evidence of wrongdoing on Huawei’s part, if there is any, or allow the company to carry on its business. The burden of proof is on the accusers.
Ultimately, it all boils down to this: Huawei never did much business in the US, and so losing out on the market opportunity is costly but not a total disaster; the US, on the other hand, has landed in an uncomfortable duopoly situation that strangles consumer choice. The US phone market needs a respectable third player more than Huawei needs the US market.
In a paper in the World Review of Political Economy , economists from Sichuan University propose a model for an efficient planned economy that uses a hybrid of managed, two-sided “platform” markets (modeled on Ebay, Alibaba and various app stores) and central planning informed by machine learning and big data to fairly and efficiently regulate production in a system in which all substantial assets are owned by the state. (more…)
On Monday morning, the world had one less geopolitical hotspot to worry about, when following months of escalating verbal jawboning and explicit threats on both sides, India agreed with China to disengage at the contested territorial dispute face-off site in Doklam.
One of the more under-reported stories – at least among the Western press – are the growing tension between China and India. As reported over the weekend , in the latest escalation, Indian and Chinese soldiers, in addition to the ongoing tense military standoff over a contested road in Doklam, were involved in an altercation in the western Himalayas on Tuesday, further raising tensions between the two countries which are already locked in a two-month standoff in another part of the disputed border.
In 1992, a strangely curious man named Wu Anai, near the Chinese village of Shiyan Beicun in Longyou County, based on a hunch, began to pump water out of a pond in his village. Anai believed the pond was not natural, nor was it infinitely deep as the local lore went, and he decided to prove it.
Source: The Mystery of The Longyou Caves
(Reuters) – The United States is in an economic war with China, U.S President Donald Trump’s chief political strategist has said, warning Washington is losing the fight but is about to hit China hard over unfair trade practices. “We’re at economic war with China,” Steve Bannon told U.S. news site prospect.org in an interview published in Wednesday. “It’s in all their literature.