‘Bring me my tariffs’: how Trump’s China plan was 40 years in the making
It is Elon Musk who is now running the United States. Not Donald Trump
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‘Bring me my tariffs’: how Trump’s China plan was 40 years in the making
Guardian
In a 2011 speech in Las Vegas, Donald Trump laid out his views on trade and tariffs, particularly targeting China. Over the years, Trump has consistently advocated for tariffs as a primary tool in his domestic and foreign policy strategy, viewing them as essential to protecting American jobs and industries. His administration implemented significant tariffs on Chinese imports, which reached an average rate of 21% by late 2019, despite economists warning that such policies would increase inflation and adversely affect middle-class households. The current bipartisan consensus against China reflects a long-standing shift in American public opinion, with a historic low of 81% viewing China unfavorably.
Trump's fixation on trade is rooted in historical tensions between the U.S. and Japan during the 1980s, a time when he perceived Japan's economic practices as detrimental to American interests. His views on trade and tariffs were formed in an era marked by rising Japanese exports, which he believed undermined American manufacturing. Trump’s concerns about Japanese trade policies served as a precursor to his later criticisms of China, illustrating a broader pattern of viewing foreign nations as interchangeable adversaries in economic competition. This perspective helped shape his political narrative, which emphasizes the need for stringent trade measures to combat perceived economic threats.
As the economic landscape has evolved, Xi Jinping's leadership has continued the legacy of export-driven growth in China, mirroring aspects of Japan's past economic strategies while also seeking to insulate China's economy. The ongoing trade tensions between the U.S. and China reflect a clash of two distinct economic ideologies: Trump's protectionist tariffs against Xi's focus on maintaining China's manufacturing dominance. This conflict indicates a significant shift in global economic dynamics, as both leaders' policies are rooted in earlier decades of economic competition, with no immediate resolution in sight. The interplay of their approaches will likely define future economic interactions on the global stage.
https://www.theguardian.com/news/2025/feb/06/bring-me-my-tariffs-how-trumps-china-plan-was-40-years-in-the-making
It is Elon Musk who is now running the United States. Not Donald Trump
Guardian
The article discusses the alarming rise of Elon Musk's influence over the U.S. government following Donald Trump's reinstatement. Musk, having contributed around $250 million to Trump's campaign, has initiated a project called "the department of government efficiency" (Doge), which aims to drastically cut the federal budget by $2 trillion. This initiative threatens to destabilize the economy, eliminate vital programs, and diminish U.S. global leadership, particularly against rivals like China. Musk is operating with unprecedented authority, having established offices in the White House and begun controlling sensitive data within federal agencies. He has proposed significant cuts, including the closure of USAid and parts of the Departments of Education and Labor, while bypassing legal processes and congressional oversight. The article highlights the dangers of an unelected billionaire wielding power in the government, suggesting that Musk's actions threaten the constitutional order and may represent a shift towards a privatized, less accountable governance model. The author expresses concern over how Musk's personal ambitions and whims could fundamentally undermine democratic
https://www.theguardian.com/commentisfree/2025/feb/06/elon-musk-us-government-power
China’s Trump Strategy
Foreign Affairs
In light of Donald Trump's resurgence in U.S. politics, Chinese policymakers are bracing for a tumultuous four years ahead in U.S.-China relations, anticipating aggressive policies that may escalate trade and technology conflicts, as well as tensions surrounding Taiwan. Trump's recent imposition of tariffs on Chinese goods has prompted Beijing to retaliate with its own tariffs and investigations into U.S. companies. However, despite having countermeasures, China recognizes the limitations of its position due to the United States’ superior power and trade deficit. Chinese officials have therefore been developing a comprehensive strategy to mitigate the impacts of Trump’s volatile policies, focusing on strengthening domestic economic resilience and fostering international relationships.
China's approach aligns with the Biden administration's strategy of investing domestically and forming alliances, as Beijing seeks to stabilize its economy amidst rising external pressures. This includes significant stimulus measures aimed at bolstering local economies, with plans for debt reduction and increased government spending. Recognizing the necessity for structural reforms to bolster its economy, China has also expressed willingness to engage in trade discussions with the U.S. to fulfill existing agreements and explore new negotiations, particularly as the trade war escalates. Furthermore, China is actively diversifying its trading relationships, especially with nations in the global South, to counterbalance potential losses in trade with the U.S.
In response to potential heightened tensions with the U.S., China is also pursuing diplomatic improvements with neighboring countries such as India and Japan, attempting to stabilize its regional relationships. By forging stronger ties with these nations and engaging in backdoor trade routes through third-party countries, China aims to insulate itself from direct U.S. sanctions while maintaining robust trade flows. Chinese leaders believe that Trump's administration could inadvertently undermine U.S. global standing, presenting an opportunity for China to enhance its influence. Ultimately, while acknowledging the challenges posed by a second Trump presidency, Beijing's overarching goal remains to weather the storm and position itself advantageously in the evolving global landscape.
https://www.foreignaffairs.com/china/chinas-trump-strategy
As trade war threats rain down, Premier Li says China must ‘turn pressure into motivation’
South China Morning Post
Amid escalating trade tensions, the U.S. has imposed a 10% tariff on all Chinese goods, prompting China to retaliate with tariffs of 10-15% on American products. Premier Li Qiang emphasized the need for confidence and coordinated measures to address economic challenges, while focusing on domestic market growth and technological advancements. Guangdong province plans to boost investment in AI and robotics to foster innovation. Despite these efforts, foreign business confidence remains low, and China's economy faces risks from tariffs and a struggling property sector, with growth potentially slowing below last year's 5%.
https://www.scmp.com/economy/global-economy/article/3297635/trade-war-threats-rain-down-premier-li-says-china-must-turn-pressure-motivation?utm_source=rss_feed
USPS to resume accepting China shipments
NBC NEWS
The U.S. Postal Service has agreed to resume accepting shipments from China, less than 24 hours after announcing it would stop doing so.
"Effective February 5, 2025, the Postal Service will continue accepting all international inbound mail and packages from China and Hong Kong Posts," it said in an updated statement Wednesday morning. "The USPS and Customs and Border Protection are working closely together to implement an efficient collection mechanism for the new China tariffs to ensure the least disruption to package delivery."
The Postal Service had earlier announced it would stop accepting packages from China, as well as Hong Kong, in the wake of the Trump administration's decision to impose a new round of 10% tariffs on all goods coming from the country.
Letters and flats were not affected by the initial announcement. While the Postal Service did not offer an explanation for the shipment halt, Trump ended a so-called "de minimis" exemption for Chinese goods worth less than $800 in making the tariff announcement.
A Chinese Foreign Ministry spokesperson had earlier said China would take “necessary measures” to protect its companies, The Associated Press reported — urging the U.S. to “stop politicizing economic and trade issues and using them as a tool, and to stop unreasonably suppressing Chinese companies.”
https://www.nbcnews.com/business/business-news/usps-resume-accepting-china-shipments-after-initial-pause-rcna190766
Will Donald Trump’s new US sovereign wealth fund take aim at Chinese assets?
South China Morning Post
President Trump has authorized the creation of a US sovereign wealth fund, potentially positioning it as a competitor to China's state investment vehicle. Analysts warn that this fund could target the overseas assets of Chinese companies, particularly in light of ongoing tensions between the two nations. While the fund might aim to influence Chinese firms and their investments, questions remain about its financing and structure. The fund could serve as a tool for Trump’s national interests and support initiatives like infrastructure and medical research. TikTok's uncertain future highlights the potential implications for Chinese assets in the US.
https://www.scmp.com/economy/global-economy/article/3297473/will-donald-trumps-new-us-sovereign-wealth-fund-take-aim-chinese-assets?utm_source=rss_feed
China says will protect its own interests in face of U.S. 'bullying'
CNBC
BEIJING — China has toughened its tone following the Trump administration's opening salvo of trade tariffs.
"In the face of one-sided acts of bullying, \[China\] will definitely take necessary measures to firmly protect its own rights and interests," Chinese Ministry of Commerce Spokesperson He Yongqian told reporters Thursday, according to a CNBC translation.
She added that China would not provoke trade disputes and remained ready to resolve problems through discussions. Beijing's official commentary previously emphasized the willingness to negotiate.
China's Ministry of Foreign Affairs Spokesperson Lin Jian struck conveyed a similar mood on Wednesday.
"China firmly deplores and opposes the move of the U.S. to levy a 10 percent additional tariff on Chinese imports under the pretext of the fentanyl issue," he said, according to an official English translation. "The measures China has taken are what's needed for safeguarding our legitimate rights and interests."
CNBC has reached out to the U.S. State Department for comment.
The official remarks came just days after the U.S. announced 10% tariffs on Chinese goods, to which the Chinese side on Tuesday retaliated with its own duties of up to 15% on U.S. liquefied natural gas and select products, starting Feb. 10.
The U.S. also halted a so-called de minimis exemption, making it more expensive for Chinese e-commerce merchants to ship products directly to U.S. consumers.
Ministry of Commerce spokesperson He on Thursday urged the U.S. to create a "fair and predictable" environment for cross-border e-commerce.
https://www.cnbc.com/2025/02/06/china-says-will-protect-its-own-interests-in-face-of-us-bullying-.html
China’s first counter-sanction on US biotech industry marks a turning point in tech war
South China Morning Post
China's Ministry of Commerce has added US biotech firm Illumina to its "unreliable entity list," citing discriminatory practices against Chinese companies. Illumina, a leader in genomic sequencing, saw its stock drop 5% following the announcement amid escalating trade tensions between the US and China. This move reflects China's efforts to bolster its biotech industry and address national security concerns. China plans to impose tariffs on certain US products while Illumina faces potential restrictions in its operations in China. The ongoing tech conflict highlights shifting dynamics in the global biotech sector.
https://www.scmp.com/news/china/science/article/3297609/chinas-1st-counter-sanction-us-biotech-industry-marks-turning-point-tech-war?utm_source=rss_feed
China’s social media reels at Musk’s ‘bioweapon theory’ for Covid-19 pandemic
South China Morning Post
Elon Musk has claimed that Covid-19 was caused by a bioweapon developed with US funding, a statement he made while criticizing the US Agency for International Development (USAID). His comments prompted mixed reactions on Chinese social media, with some endorsing the idea of Covid-19 as a bioweapon, while others questioned the implications of linking it to Wuhan. Despite Musk’s assertions, the global scientific community and the World Health Organization support the theory of a natural origin for the virus. China's foreign ministry has urged the US to avoid politicizing the virus's origins.
https://www.scmp.com/news/china/science/article/3297610/chinas-social-media-reels-musks-bioweapon-theory-covid-19-pandemic?utm_source=rss_feed
DeepSeek fuels Chinese tech stock rally as valuation gap narrows vs ‘Magnificent Seven’
South China Morning Post
The success of Chinese AI start-up DeepSeek is leading investors to reevaluate Chinese tech companies, which trade at lower valuations compared to US giants. The Hang Seng Tech Index rose over 10% recently, with major players like Alibaba and Xiaomi benefiting from DeepSeek's AI integration. The revival hints at a shift in sentiment towards the tech sector, previously hindered by weak spending and regulatory crackdowns. Analysts note that Chinese tech stocks are significantly undervalued, suggesting potential growth as companies integrate DeepSeek's technology. This could foster renewed emphasis on innovation amidst US restrictions.
https://www.scmp.com/business/china-business/article/3297604/deepseek-fuels-chinese-tech-stock-rally-valuation-gap-narrows-vs-magnificent-seven?utm_source=rss_feed
Rubio accuses South Africa of ‘anti-Americanism’ and snubs G20 meeting
Guardian
US Secretary of State Marco Rubio has accused South Africa of "anti-Americanism" and announced he will not attend the G20 meeting in Johannesburg later this month, reflecting deteriorating diplomatic relations under the Trump administration. Rubio echoed President Trump's unsubstantiated claims that South Africa is expropriating private property and criticized the country's G20 agenda focused on "solidarity, equality, & sustainability." In response, South African Foreign Minister Ronald Lamola stated there is no arbitrary land dispossession and emphasized the G20's broader goals. The tensions have been exacerbated by South Africa's refusal to align with the US in the Russia-Ukraine conflict and its active participation in the BRICS bloc. Elon Musk, a South African-born billionaire and Trump advisor, supported Rubio's comments. The situation highlights ongoing complexities in US-South Africa relations, particularly regarding land reform and foreign investment policies.
https://www.theguardian.com/us-news/2025/feb/06/rubio-accuses-south-africa-of-anti-americanism-and-snubs-g20-meeting
Baltic states finally turn off Russian electricity
Deutsche Welle
Lithuania, Latvia, and Estonia will disconnect from Russia's electricity grid on February 8, marking a significant step in distancing themselves from their Soviet past and enhancing their energy security within the EU. Although the move is largely symbolic since they stopped purchasing Russian electricity in May 2022, it signifies their commitment to the EU's Synchronous Grid of Continental Europe. The Baltic states aim to diversify energy sources and improve renewable integration, supported by €1.23 billion in EU investments. This decision is driven by concerns over Russian aggression, particularly following the invasion of Ukraine.
https://www.dw.com/en/brell-lithuania-latvia-and-estonia-turn-off-russian-electricity/a-71498635
Alibaba bolsters consumer AI team with expert Steven Hoi amid race for top tech talent
South China Morning Post
Alibaba Group has hired Steven Hoi Chu-hong, a machine learning and computer vision expert, as vice-president to bolster its AI team focused on consumer applications. Previously managing director at Salesforce Research Asia, Hoi will lead research on multimodal foundation models and consumer-facing AI solutions. His appointment follows Alibaba's restructuring of its AI operations into consumer and enterprise divisions. Hoi, an IEEE fellow, has a strong academic background and previously founded an AI research firm. His recruitment reflects the competition among Chinese tech companies for AI talent amid a challenging job market.
https://www.scmp.com/tech/big-tech/article/3297642/alibaba-bolsters-consumer-ai-team-expert-steven-hoi-amid-race-top-tech-talent?utm_source=rss_feed
Xi Jinping praises Thailand’s crackdown on Myanmar scam hubs
South China Morning Post
Chinese President Xi Jinping commended Thailand's crackdown on scam factories during a meeting with Prime Minister Paetongtarn Shinawatra, who is on her first official visit to China. Thailand has cut off utilities to areas housing scammers and halted supplies aiding their operations. Xi emphasized the importance of law enforcement cooperation to ensure safety for tourists. Amid concerns over Chinese nationals trapped in scams, both countries pledged to enhance crime-fighting collaboration. The visit aligns with Thailand's efforts to revive its economy and strengthen ties with its largest trading partner, China, especially in infrastructure and electric vehicles.
https://www.scmp.com/week-asia/politics/article/3297659/xi-jinping-praises-thailands-crackdown-myanmar-scam-hubs?utm_source=rss_feed
Elon Musk promises to Make Tesla Great Again. Investors are buying it – for now
CNN
Tesla faces significant challenges, including declining sales, reduced profit margins, and increased competition, particularly internationally. CEO Elon Musk's distractions with other ventures and political involvement raise concerns about his focus on Tesla's pressing issues. Despite a history of unmet promises, investors remain optimistic due to potential advancements in autonomous vehicles and humanoid robots. However, analysts note that Tesla's stock performance seems disconnected from its financial realities. Additionally, the end of federal EV policies may further impact Tesla's profitability, especially as it risks losing its position as the leading EV manufacturer to competitors like BYD.
https://edition.cnn.com/2025/02/06/business/elon-musk-promises-to-make-tesla-great-again-for-now-investors-are-buying-it/index.html
Shein and Temu adjust as Trump uncertainty enshrouds e-tailers
Nikkei Asia
Chinese e-commerce platforms like Temu, Shein, and AliExpress face significant challenges due to new trade policies implemented by the Trump administration, including a 10% tariff on Chinese imports and the elimination of the de minimis exemption for goods valued under $800. This has prompted retaliatory actions from Beijing and forced sellers to adapt quickly. Analysts suggest these companies may absorb costs, pressure suppliers, and raise prices to maintain sales. In the long term, they will need to shift towards U.S.-based fulfillment models to diversify their offerings.
Small merchants, particularly those shipping directly to U.S. consumers, are particularly vulnerable, as increased costs could force many out of the market. The U.S. Customs and Border Protection noted that millions of packages previously exempted from tariffs could see a decline in Chinese exports. Amid these changes, platforms are exploring hybrid models that involve local inventory, with Shein and Temu already establishing U.S. warehouses. However, the uncertainty surrounding regulatory scrutiny and the possibility of future bans adds to merchant anxiety in this evolving landscape.
https://asia.nikkei.com/Economy/Trade-war/Shein-and-Temu-adjust-as-Trump-uncertainty-enshrouds-e-tailers
Beijing denounces Taiwanese leader William Lai as ‘destroyer of cross-strait peace’
South China Morning Post
Beijing has condemned Taiwanese leader William Lai Ching-te as a "destroyer of peace" for his remarks asserting that Taiwan and mainland China are not subordinate to each other. The Taiwan Affairs Office criticized Lai's "Taiwan independence" stance and accused him of inciting tensions in the Taiwan Strait. Despite his calls for cross-strait dialogue and cooperation, Beijing maintains that Taiwan is part of China and warns against separatist movements. Lai emphasized the importance of sovereignty and proposed dialogue to address geopolitical tensions, while Beijing continues to assert its claim over Taiwan.
https://www.scmp.com/news/china/politics/article/3297644/beijing-denounces-taiwanese-leader-william-lai-destroyer-cross-strait-peace?utm_source=rss_feed
China’s Lunar New Year spending spree offers hope for consumption boost
South China Morning Post
China experienced robust domestic consumption during the recent Lunar New Year holiday, with a 10.8% increase in average daily sales revenue compared to last year. Spending on consumer goods rose 9.9%, while services saw a 12.3% increase. A nationwide trade-in policy contributed to a significant surge in household audiovisual equipment sales. However, consumers exhibited caution, favoring low-cost entertainment over large purchases. Tourism revenue reached a record $94.2 billion, and mobile payments by international visitors increased 134%. Overall, the holiday consumption data indicates a shift towards prioritizing domestic spending amidst external economic pressures.
https://www.scmp.com/economy/economic-indicators/article/3297624/chinas-lunar-new-year-spending-spree-offers-hope-consumption-boost?utm_source=rss_feed
DeepSeek’s growth in China surges past ByteDance’s Doubao in AI app race
South China Morning Post
DeepSeek, an AI chatbot app, has surpassed ByteDance's Doubao to become China's most popular AI app, reflecting a growing interest in the Hangzhou-based start-up. Since the launch of its open-source V3 and R1 models, DeepSeek has gained significant traction, amassing an average of 22.2 million daily active users (DAUs) in January, compared to Doubao's 17 million. The app also outpaced OpenAI's ChatGPT in DAU growth. DeepSeek's R1 reasoning model, which is free to use, has been well-received, leading to increased visibility on social media during the Lunar New Year. Although Doubao still leads in monthly active users (MAUs) with 78.6 million, DeepSeek is quickly gaining ground with 33.7 million MAUs. Other AI apps, such as Moonshot AI's Kimi and Baidu’s Wenxiaoyan, follow in popularity.
https://www.scmp.com/tech/big-tech/article/3297586/deepseeks-growth-china-surges-past-bytedances-doubao-ai-app-race?utm_source=rss_feed
Canadian firms affected by U.S. tariffs on China looking for workarounds: survey
The Globe and Mail
Canadian businesses are feeling the impacts of U.S. tariffs despite a temporary reprieve on Canadian goods. A KPMG survey reveals that nearly two-thirds of companies are adapting to the 10% tariffs imposed on Chinese imports by the U.S. Many are diverting goods to non-tariff countries and reevaluating supply chains. The uncertainty surrounding U.S. trade policies has made planning difficult for Canadian firms. Prime Minister Trudeau is holding a summit to address U.S. protectionism and explore diversifying trade. Meanwhile, Canada faces challenges attracting investment due to high taxes and regulations compared to the U.S.
https://www.theglobeandmail.com/business/economy/article-canadian-firms-affected-by-us-tariffs-on-china-looking-for-workarounds/
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