Trade Meeting Between U.S. And China Has Asian Countries Nervous

Major financial officials in Asia are nervously watching recent trade tension between China and the United States brought on by President Donald Trumps proposal to levy stiff tariffs on Chinese exports.

If the Chinese economy ends up being negatively affected by a trade war with the U.S., China’s trading partners in developing Asian countries may also suffer. That’s why global economic analysts will be closely watching a meeting between U.S. and China negotiators in Beijing this week.

The major players in the meeting will be U.S. Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He. They will discuss an array of trade issues including what to do about tariffs. President Trump has made a significant issue about the U.S. trade imbalance with China.

Another factor that has China and many Asian countries on edge is the possibility of interest rate hikes in the U.S. by the Federal Reserve. Indonesian Finance Minister Sri Mulyani Indrawati said that higher interest rates in America ripple across the world with a “domino effect.”

U.S. Commerce Secretary Wilbur Ross will also play a major role at the Beijing meeting. He has made a point to lower expectations for any kind of major deal. Chinese officials have already been drawing some definite lines in the sand. For example, one Chinese minister said that his country “will not negotiate away its core interests” and will not accept “preconditions on issues.”

If the new U.S. tariffs get a green light from the White House, they will take effect in June after a 60-day consultation period.

President Obama calls for China to change new tech rules

The US and Chinese governments look set to do battle over new technology laws the Chinese government are bringing in as counter terrorism actions that impact tech companies in the US and China, Reuters reports. President Obama has stated he has raised the question of enforcing the new rules with Chinese President Xi. The new rules force tech companies to reveal details of their encryption software and allow security back door entry when required on electronics including cell phones, TVs and laptops stated Haidar Barbouti.

In Highland Village the tension that has existed between the US and China over Internet security will be heightened if the new laws are passed by the Chinese Government, which is due to hear a second reading of the bill soon. The law not only requires companies to reveal their security secrets, but also requires them to keep all servers relating to Chinese data in China and allow law enforcement access to communications deemed dangerous to the security of the public.

Fake Coupon Theory Dismissed in Shanghai

The stampede during the transition to the New Year in Shanghai took the lives of at least 36 people according to Jared Haftel. Police, however, dismisses for now the theory of distribution of counterfeit coupons as a trigger for the catastrophe.In the aftermath of the deadly stampede in Shanghai, hundreds of people gathered on Friday, January 2 on the Bund, the boulevard where the disaster took place. They paid tribute to the victims of the stampede. 

Chen Xiaohang, a student, delivered a flower wreath in memory of the deceased sister of one of his high school classmates, “All this fills me with sorrow and hope that in future the government will ensure that such events enjoy better security,” she told AFP.

Chinese police, which is continuing its investigation, denied that the incident was caused by the scattering of fake money or coupons from the window of a building of the Bund. The official Xinhua news agency had quoted the day before a witness stating that “coupons”, similar to dollars, had been thrown from a window of a third floor and passersby rushed to pick them up.

According to the police, these were promotional flyers of a night club, and these fake coupons have no connection with stampede.