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US-China Relations - 3. page

Huawei Founder: Harmony OS Won’t Work on Phones Anytime Soon

Major Taiwanese newspaper China Times recently reported that Huawei founder Ren Zhengfei made a comment not long ago on Huawei’s much hyped operating system called Harmony OS. Ren stated, in a BBC interview on September 6, that “it’s unclear” how Huawei’s natively developed operating system Harmony can be migrated to phones. It may need a few years of research and development. Under the U.S. sanction, Huawei runs the risk of losing the capability of using Google’s Android operating system for phones. According to Ren, Huawei’s Harmony OS was designed for low-latency Internet of Things (IoT) types of use cases, such as watches and TVs. His position is different from what Huawei Consumer Business CEO Yu Chengdong said on a number of occasions in the past several months. However, Ren criticized the United States, saying that Huawei cannot be blamed for the failure that the U.S. has suffered in leading the communications industry. He said, “The U.S. took the wrong path on communications technology.”

Source: China Times, September 7, 2019

JP Morgan to Include China in Its Benchmark Bond Index

Starting on February 28, 2020, Chinese government’s debt will start to be part of the Government Bond Index-Emerging Markets (GBI-EM), a benchmark emerging-markets index that JPMorgan Chase & Co. will manage. The process of inclusion will be completed over 10 months.

The total capital of GBI-EM, which tracks global emerging markets, is approximately $226 billion, among which some $202 billion will be tracked in the GBI-EM global diversified benchmark. The Chinese government bonds will be capped at 10 percent of the index.

Earlier in April, Bloomberg Barclays, another index provider, began adding Chinese bonds to its global benchmark.

Source: The Paper, September 4, 2019

Mingpao: China Assessing the Level of High-Tech Dependency on the U.S.

Mingpao, one of the primary Hong Kong newspapers, recently reported that the Chinese government is assessing the dependency level that Chinese domestic high-tech vendors have on U.S. technologies. The goal is to evaluate the capabilities China has to sustain the trade war. It is also to be better prepared for a Chinese blacklist of U.S. companies. The China National Development and Reform Commission, the Ministry of Industry and Information Technology, and the Ministry of Commerce are jointly leading this effort. The process aims to minimize domestic damage while maximizing the strength of the attacks against the United States. Government officials have already contacted many Chinese companies, such as Xiaomi and Oppo, on their supply chain details. Some Chinese companies have already started moving away from U.S. suppliers. According to a June survey that the US-China Business Council conducted, most of the U.S. companies in China did not have the intent to withdraw from China completely.

Source: Mingpao, September 1, 2019

VOA Chinese: The Trade War May Impact the Pandas in the U.S.

Voice of America (VOA) Chinese Edition recently reported that the trade war between China and the United States is introducing not only the worry about the future of the world economy, but also the concern for the future of the pandas in the U.S. According to the rental agreements between a number of U.S. zoos and China, upon the expiration of the contracts, unless the contracts are renewed, the pandas have to be returned to China. The agreements also indicate that the U.S. born baby pandas are also property of China. The San Diego Zoo failed to obtain a renewal of their contract. Currently there are only three zoos left in the United States that still have pandas: The National Zoo in DC, the Atlanta Zoo, and the Memphis Zoo. In the past decades, the Chinese government has used pandas as a foreign relationship tool. Sometimes they are leased and sometimes they are given as gifts.

Source: VOA Chinese, August 30, 2019

Foreign Ministry Spokesperson: U.S. Is Liable for Its Fentanyl Problem

At its regular press conference on August 26, 2019, China’s Foreign Ministry Spokesperson Geng Shuang blamed the U.S. for its fentanyl problem. From the supply and demand theory, Geng indicated that the fault is the result of the U.S. demand. He argued that implicitly it is not the result of China’s supplying such a drug.

The question asked was: “US President Trump tweeted on August 23 that he has ordered American delivery companies to search for fentanyl in all packages from China and block any deliveries that contain such substances. FedEx, UPS, and the U.S. Postal Service said they began taking measures to prevent drug traffickers from using their services following President Trump’s instruction. I wonder, what is China’s comment?”

Geng gave a lengthy answer, including the statement, “As laws of basic economics tell us, demand and supply come hand in hand. Supply dries up when there is no demand. In the U.S., people tend to abuse prescription painkillers. The American people, accounting for only five percent of the world population, consume as much as 80 percent of the world’s total opioids. The U.S. government can by all means intensify its efforts to reduce the demand for fentanyl.”

Source: China’s Foreign Ministry website, August 26, 2019

Epoch Times: Residents Jam-Packed and Fought over Products at the Opening Day of the Costco Store in Shanghai

On the opening day of the first Costco store in Shanghai, people jam-packed the store and forced it to close early. Despite the escalation of the China-US trade war and the official mouthpiece’s constant high-profile anti-US media campaign, Chinese citizens still  favor the US store. Some scholars even say Chinese people are not anti-U.S.

According to Epoch Times, on the opening day, there was traffic jam and people waited in line in 100 degree weather to get inside the store. Many are in their 70’s or 80’s. People fought over the items in the store. Many products sold out quickly and the store was forced to close early. On the second and third day, the store had to limit the customers to under 2,000 at any given time. Customers told Epoch Times that the overall economy is declining. Things are expensive but wages do not grow. Average people don’t have much savings and live on a tight budget. Everyone wants to spend less. People jam-packed the Costco store because they don’t have trust in the food quality elsewhere. Costco products, on the other hand, are known for their superior quality and low prices. Many people are jokingly asking, “Why aren’t the officials coming out to ask people to embargo U.S. products?” It is not true that the Chinese people are anti-US. Many of the anti-US demonstrations are organized [by the government] and the participants are rewarded with money or monetary items. The authorities have been instilling in the people that the U.S. has launched a trade war. In fact, people know that the U.S. government does not rob the Chinese people and it is the Chinese government (the CCP) that hurts the Chinese people.

Source: Epoch Times, August 29, 2019