Trade war is still on schedule

[bolo]

Fighting a trade war may not be a bad thing. Before the ZTE incident, no one in China cared about making long term investments. But after this incident, people are pouring their money into basic research and long term investment like semiconductor.

Current Communist party will not stand up to US. Many CPC already put their wealth into the US properties.

 

[UserUnknown2025]

Current Communist party will not stand up to US. Many CPC already put their wealth into the US properties.

Let's wait and see.

 

[bobsm]

@ChineseTiger1986 Now is China bending over backwards for Uncle Sam with this latest breaking news below?

China Approves Qualcomm's Takeover of NXP in $44B Deal (June 15, 2018):
Link - http://www.scmp.com/business/compan...rs-approve-qualcomm-purchase-nxp-us44-billion

Qualcomm-NXP deal still waiting for China nod: sources
Reuters Staff

BEIJING/SHANGHAI (Reuters) - China is yet to approve U.S. chipmaker Qualcomm Inc’s proposed $44 billion acquisition of NXP Semiconductors, three people close to the talks said, dismissing an earlier media report that said Beijing had already greenlit the deal.

Chinese clearance would remove a long-running roadblock to the deal that has become entangled with broader trade tensions between the United States and China. The acquisition has already got a nod from eight of the nine required global regulators, with China being the only hold-out.

Hong Kong-based South China Morning Post reported on Friday morning that China had given its go-ahead to the deal, citing people with knowledge of the matter, driving up shares of the U.S. firm in extended trade.

But Reuters sources, who are close to the Qualcomm-NXP deal, said they were not aware of any Chinese approval. One of them said planned U.S. tariffs on Chinese goods expected to be unveiled later in the day could impact the process.

Qualcomm did not have an immediate comment on Friday, while NXP did not respond to a request for comment.

China’s State Administration for Market Regulation, the regulator which reviews merger deals, did not immediately respond to a faxed request for comment.

Qualcomm met with regulators in Beijing last month in a bid to secure a clearance, but sources at the time said an approval would depend on the progress of broader bilateral talks and the U.S. government lifting a crippling supplier ban on telecoms equipment maker ZTE Corp.

Washington and Beijing have struck a deal to help ZTE back into business. However, trade talks remain in the balance with U.S. President Donald Trump expected to unveil “pretty significant” tariffs on Chinese goods on Friday.

Analysts said a Chinese approval would be significant as it would remove the last major barrier to the NXP deal, which is seen as key for Qualcomm to diversify its business and make a push into new areas like smart cars.

The U.S. chipmaker on Friday extended its cash tender offer to buy all shares of NXP by a week.

The offer is now scheduled to expire on June 22, the latest in a series of extensions since Qualcomm initially announced its bid for the Dutch semiconductor company in October 2016.

Reporting by Michael Martina and Matthew Miller in BEIJING, Adam Jourdan in SHANGHAI and Nikhil Subba and Arjun Panchadar in BENGALURU; Editing by James Dalgleish, Grant McCool and Himani Sarkar

https://www.reuters.com/article/us-...l-waiting-for-china-nod-sources-idUSKBN1JA3AG

 

[ChineseTiger1986]

Chairman Mao already warned about this problem decades ago. The only solution is a purge of the traitors at the top as well as social movement support from the grassroots.

I think China should not be this wealthy. The GDP should not be so large. It would be better if the GDP was only 60% of its size but the income is more evenly distributed throughout society. Then these crony capitalism problems could be brought under control.

China still needs to be the largest producer and manufacturer.

We just don't need the fake GDP data, since murica really loves to boast the fake GDP data, while we don't.

 

[TaiShang]

Fighting a trade war may not be a bad thing. Before the ZTE incident, no one in China cared about making long term investments. But after this incident, people are pouring their money into basic research and long term investment like semiconductor.

I think we need not to miss the big picture. China's government will definitely not follow a populist line, no matter how much I may want to see some sort of populism and tough rhetoric. I guess government's job is to see the big historical picture.

Sometimes, observer drift may make us see things as normal, especially if we fail the comparative analysis. China has lifted so many millions out of poverty. Life expectancy reached 77 years. A number of tech breakthroughs were made and a number of parity achieved with the advanced nations. While the world is in turmoil and developing countries are being used as social laboratories, China maintained sovereign control over its domestic affairs.

These are all done within the present world structure. These are accomplishments which could be understood in comparative sense only.

The accomplishments made so far still easily places China's government as the most successful one on planet -- considering the dire conditions it started with.

Therefore, we need scientific and historical weight. It does not make sense to make sweeping arguments.

The way as I see it, China plays the game as it should be based on its national interests. If national interests require to stay within the system, China abides by the rules. If national interests require bending the system, China bends it. If national security requires writing new rules, China writes new rules.

A government's policy cannot be like a dry stick: either too strong to bend, or is only able to get broken. When even business decisions require lots of room maneuver, of course, national policies require a greater room to move.

 

[casual]

The trade war is about politics instead of economics for Trump and Republican party. Trump's base of poorly educated white man overwhelmingly support his trade war and his bullying tactics. This is all a ploy to energize their base for the November elections.