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US-China Relations - 3. page

LTN: Morris Chang Met with U.S. VP Pence at APEC

Major Taiwanese news network Liberty Times Network (LTN) recently reported that, in the afternoon, after U.S. Vice President Pence made a speech to the full conference at APEC, Morris Chang, the Taiwanese representative to APEC, had a high-profile bilateral dialogue with him. This meeting became the highest ranking public official meeting in the history of the US-Taiwan relationship. The conversation focused on the world economy and trade topics. Pence mentioned after the meeting that he will bring back Chang’s suggestion of establishing a US-Taiwan free trade agreement to Present Trump. There have been rumors of a meeting between Chinese President Xi and U.S. Vice President Pence. However, that didn’t materialize. Morris Chang is a Taiwanese businessman and the founder, former chairman, and CEO of the Taiwan Semiconductor Manufacturing Company, the world’s first and largest silicon foundry.

Source: LTN, November 17, 2018

RFA: Silicon Valley Said No to Wuzhen

Radio Free Asia (RFA) recently reported that the Fifth World Internet Conference was held in Wuzhen, Zhejiang Province, starting on November 7. Other than the CEO of Qualcomm, a U.S. chip maker, who attended the Conference and delivered a speech, no high-ranking officers from Silicon Valley showed up. Apparently, this was due to the trade war between China and the U.S. In fact, many of these companies were very upset about China’s continuous dishonest behavior, such as stealing intellectual property from them. This is one of the main triggering causes of the trade war. Some experts expressed the belief that it’s ironic for China, a country that blocks billions of netizens from freely accessing international websites, to host the international Internet conference year after year. Bill Xia, the President of a U.S. internet freedom product (Freegate) company, commented in an RFA interview that China has been hiding behind the ridiculous excuse of “internet sovereignty” to hammer freedom of speech and to apply tight controls over its own citizens.

Source: RFA Chinese, November 8, 2018

The Canton Fair Showed a 30 Percent Decline in Exports to the U.S.

Sofreight, a Chinese national logistics and shipping information site, recently reported that, when the 124th Canton Fair (also known as the China Import and Export Fair) closed, it showed a decline of over 30 percent, to US$279 million, in the level of exports to the United States. Also, in addition to the decline of U.S. buyer attendance, the attendance of buyers from other major economies also saw a significant decline. Compared to last year, European Union buyers declined by 3.93 percent, the U.S. buyers declined by 4.07 percent, and Hong Kong declined by 6.34 percent. The Canton Fair has historically been the primary barometer to measure China’s international trade health. The export level reflected in the Fair was in line with what was demonstrated in the recent Chinese export PMI numbers. In October, the Chinese export orders index under its PMI score reached the lowest point since 2016. According to a Fair internal survey conducted by the Zhejiang Province delegation among their own 4,690 companies that participated in the Canton Fair, over 60 percent of the companies have 10 percent or more revenue dependency on exports to the U.S. Around 15 percent of companies have over 80 percent dependency on U.S. exports. Around 66 percent of the companies surveyed expected an export decline of 10 percent or more.

Source: Sofreight, November 9, 2018

Global Times: Trump Quitting UPU Because of Jealousy

Global Times recently reported that, after quitting the Paris Climate Agreement and UNESCO, along with many other organizations and agreements, U.S. President Trump once again decided to continue down this path. Now it is the turn of the Universal Postal Union (UPU). It appears that Trump could not live with the fact that, under UPU rates, China can enjoy a lower shipping rate when sending packages to the United States. UPU coordinates international postal shipping costs with a fair balance between industrialized countries and developing countries. The balance was to improve the economic development in Asia and Africa. Apparently, Trump’s Director of the Office of Trade and Manufacturing Policy, Peter Navarro, believes quitting UPU is one of the convenient methods to defeat China and to challenge the “status quo.” Chinese experts expressed their belief that Trump’s new move is not going to fundamentally change the fact that China produces affordable products, and the true victims will be the American consumers. {Editor’s note: The U.S. Postal Service loses money due to UPU lower rates for developing countries.}

1. Global Times, October 18, 2018
2. CNN, October 17, 2018,

World Journal: China Turns to Europe and South America for Pork

Well-known U.S. Chinese language newspaper World Journal recently reported that the U.S. advantage in the Chinese pork market is changing. The United States used to have a significant market share in the Chinese pork market. However, in April, China increased the U.S. pork import tariff by 25 percent and increased it again in July to 70 percent. This resulted in pork imported from the U.S. being very pricey. An additional situation is that China is now suffering from swine fever, which has added to its dependency on imported pork. The situation has been driving Chinese importers to turn to Europe and South America. Both Spain’s largest pork supplier El Pozo Alimentacion SA and some Argentina government officials told the press that they received orders from China. It appears that U.S. pork manufacturers will be hurt in the short run. In the long run, the global pork supply chain will most likely reshuffle. As the largest pork market, China consumes half of world’s pork. Today’s Chinese domestic supply level will not be able to fulfill the entire domestic demand.

Source: World Journal, October 20, 2018