Share This
Thursday, March 29, 2018
Kim Jong-un says he is ‘committed to Korean denuclearisation’ in Beijing talks
https://youtu.be/E3FfuXcgzUU
North Korea’s leader Kim Jong-un has promised President Xi Jinping that he will follow through the wishes of his father and grandfather in denuclearising the Korean peninsula, but added he wants assurances from the United States and South Korea.
The leader of the reclusive state made the remarks during a trip to China, his first overseas visit since he became North Korea’s leader, according to the state-run Chinese news agency Xinhua.
Kim, the third generation of his family to lead his country, said the situation on the Korean peninsula was improving and that his government has taken steps to ease tensions, Xinhua reported.
North Korean leader Kim Jong-un leaves Beijing after surprise visit >>
Kim added that if the US and South Korea were willing to respond to North Korea’s efforts with sincerity the nuclear issue “can be solved”.
“Our unswerving stance is that we will make efforts towards the denuclearisation of the peninsula,” Kim was quoted as saying by Xinhua. President Xi pledged to work with North Korea to achieve denuclearisation.
“China is willing to continue to make a constructive impact on the Korean peninsula problem,” President Xi said. He called upon all sides to solve the problem through dialogue, Xinhua reported.
Tensions have risen on Korean peninsula after North Korea has increased nuclear weapons tests.
The United Nations has enforced a series of sanctions to try to rein in Pyongyang’s nuclear ambitions.
Hopes of a breakthrough in the crisis have risen since the announcement that North and South Korea’s leaders have agreed to meet.
Beijing is North Korea’s long-standing traditional ally, but ties have been frayed by North Korea’s pursuit of nuclear weapons and China’s support of UN sanctions.
Pang Zhongying, a senior fellow at the Ocean University of China in Qingdao, said Kim was securing China’s support ahead of his meeting with US President Donald Trump, scheduled to be held by May.
“By denuclearisation, Kim actually means the whole Korean peninsula should be denuclearised and that the nuclear weapons deployed by the US in South Korea should be withdrawn,” Pang said. “Can the US really accept that request? The gesture means that the chance of a significant breakthrough between Kim and Trump may be slim.”
Kim’s visit evidence China and North Korea remain allies, analysts say >>
Paul Haenle, director of the Carnegie-Tsinghua Centre in China, agreed Kim was looking for support from Beijing ahead of his meetings with South Korea’s president and Trump.
”Just as Kim may have felt he had secured some leverage against Xi having independently secured summits with Trump and Moon, he’ll now feel more confident knowing where things stand with Beijing heading into those same meetings,” he said.
White House press secretary Sarah Huckabee Sanders said the Chinese government had briefed the Trump administration about the visit on Tuesday.
The Trump administration sees the development “as further evidence that our campaign of maximum pressure is creating the appropriate atmosphere for dialogue with North Korea”, she said.
Beijing residents left in the dark during Kim Jong-un’s unexpected visit >>
Kim arrived by train in Beijing on Monday and left the following day, with his trip to China coming just days before a planned meeting with South Korean President Moon Jae-in and ahead of the possible summit with Trump.
Speculation about a visit by Kim to Beijing came earlier this week after a train similar to the one used by Kim’s father was seen in the Chinese capital.
Ri Sol-ju, Kim’s wife, was also part of the delegation to Beijing, Xinhua reported.
China’s Premier, Li Keqiang, Vice-President Wang Qishan and Politburo Standing Committee member Wang Huning also met the North Korean leader.
The green armoured train carrying the North Korean leader returned to the reclusive state at about 6am on Wednesday across a bridge connecting the two countries in Dandong, Liaoning province.
Chinese police had blocked access to the area around the bridge before the train’s arrival.
Armed police vehicles were also seen in the area.
North Korea agrees to inter-Korean talks to discuss possible April summit >>
Access to parts of the Yalu River riverbank, which separates North Korea and Dandong, were blocked. Some police officers also stopped people from taking pictures of the bridge before the train’s arrival.
“I can only say that a situation is happening here,” a police officer at one of the blocked roads told the South China Morning Post.
About three minutes after the train passed over the bridge, police officers finally allowed pedestrians to enter the area.
As the Post visited the area in the early hours of Wednesday – before the area was cordoned off – five plainclothes police officers approached and asked staff to leave.
They did not explain why, only saying “it was not safe” to be there so late at night.
Source: South China Morning Post by Phila Siu is reporting from Dandong
Labels:
China,
Kim Jong-un,
Korean denuclearisation,
Korean Peninsula,
North Korea (DPRK),
Politics,
President Xi,
South Korea,
USA
Rightways - Sowing the seeds of Success:
Think Global, Act Local; Change & Grow Rich; Sow as You Reap & Soar High!
Richard Tan
MBA(UK), BCA(NZ), AMA(USA),MMIM
Wednesday, March 28, 2018
Malaysian Chinese will lose out from DAP's tactics
https://youtu.be/ZMjeV2afEzo
KUALA LUMPUR: The Chinese community stands to lose the most in DAP’s strategy to wipe out the Chinese leaders of their political rivals, says prominent political analyst Rita Sim. “It is a high-risk strategy as DAP is assuming it still has the Chinese support from the ‘tsunami’ it created in the past two general elections,” said Sim of the Centre for Strategic Engagement (Cense).
“It seems as if it wants to wipe out all the component party heads, especially those from MCA.
“In the Chinese community, especially the older voters, we are hearing that they are not happy with this approach.
“It’s also very funny that DAP is doing this. In its earlier years, it believed there should always be check and balances.
“So now that it is picking up this strategy, where is the check and balance?” she asked.
Sim said no one would be able to second-guess what the voters would do and questioned whether DAP could beat the incumbents.
“What happens if it doesn’t win the seats? Its capable parliamentarians would then be out,” she added.
Separately, MCA deputy president Datuk Seri Dr Wee Ka Siong criticised DAP for being “consistently inconsistent” in its stance.
He said on Jan 31, the party’s Kulai MP Teo Nie Ching issued a statement, carried by most of the Chinese dailies, saying DAP was on a mission to eliminate MCA.
On Feb 13, Dr Wee noted, DAP stalwart Lim Kit Siang said there was no such mission and that it was only a self-fulfilling prophecy.
“Three days ago when it announced the candidate for the Bakri parliamentary seat, (DAP secretary-general) Lim Guan Eng said the party’s mission was to eliminate Barisan.
“It would send its so-called strongmen to contest in MCA and Gerakan strongholds, especially those held by top leaders.
“What does it mean? Do you think a constituency can choose two leaders? I give you half-term and then I take half-term?” said Dr Wee, adding that DAP was not contesting a single seat against Umno and all the 35 seats it had since announced pitted its candidates against MCA and Gerakan.
Penang Gerakan chairman Teng Chang Yeow, speaking at a party function recently, had also criticised DAP for its game plan, which would rob the Chinese community of talented leaders.
He said by politically wiping out Chinese leaders from MCA and Gerakan, DAP would indirectly weaken the community.
In Penang, state MCA liaison committee chairman Datuk Tan Teik Cheng said the recent “sacrifice MCA” remark by state DAP chairman Chow Kon Yeow was akin to sacrificing the interests of the Chinese.
“This again proves DAP’s attempt to lure voters into believing the party can defend the rakyat, especially the Chinese.
“But in reality, it is challenging the rakyat to defend their own rights and interests. It cannot be denied that MCA represents the Chinese community,” he said in a press statement yesterday.
Source: The Star
Related News:
Related posts:
Pricey seizure: The luxury vehicles,
(clockwise from top left) a Toyota Vellfire, a Mercedes-Benz, a Land
Rover and a Hyundai Stare..
KUALA LUMPUR: The Chinese community stands to lose the most in DAP’s strategy to wipe out the Chinese leaders of their political rivals, says prominent political analyst Rita Sim. “It is a high-risk strategy as DAP is assuming it still has the Chinese support from the ‘tsunami’ it created in the past two general elections,” said Sim of the Centre for Strategic Engagement (Cense).
“It seems as if it wants to wipe out all the component party heads, especially those from MCA.
“In the Chinese community, especially the older voters, we are hearing that they are not happy with this approach.
“It’s also very funny that DAP is doing this. In its earlier years, it believed there should always be check and balances.
“So now that it is picking up this strategy, where is the check and balance?” she asked.
Sim said no one would be able to second-guess what the voters would do and questioned whether DAP could beat the incumbents.
“What happens if it doesn’t win the seats? Its capable parliamentarians would then be out,” she added.
Separately, MCA deputy president Datuk Seri Dr Wee Ka Siong criticised DAP for being “consistently inconsistent” in its stance.
He said on Jan 31, the party’s Kulai MP Teo Nie Ching issued a statement, carried by most of the Chinese dailies, saying DAP was on a mission to eliminate MCA.
On Feb 13, Dr Wee noted, DAP stalwart Lim Kit Siang said there was no such mission and that it was only a self-fulfilling prophecy.
“Three days ago when it announced the candidate for the Bakri parliamentary seat, (DAP secretary-general) Lim Guan Eng said the party’s mission was to eliminate Barisan.
“It would send its so-called strongmen to contest in MCA and Gerakan strongholds, especially those held by top leaders.
“What does it mean? Do you think a constituency can choose two leaders? I give you half-term and then I take half-term?” said Dr Wee, adding that DAP was not contesting a single seat against Umno and all the 35 seats it had since announced pitted its candidates against MCA and Gerakan.
Penang Gerakan chairman Teng Chang Yeow, speaking at a party function recently, had also criticised DAP for its game plan, which would rob the Chinese community of talented leaders.
He said by politically wiping out Chinese leaders from MCA and Gerakan, DAP would indirectly weaken the community.
In Penang, state MCA liaison committee chairman Datuk Tan Teik Cheng said the recent “sacrifice MCA” remark by state DAP chairman Chow Kon Yeow was akin to sacrificing the interests of the Chinese.
“This again proves DAP’s attempt to lure voters into believing the party can defend the rakyat, especially the Chinese.
“But in reality, it is challenging the rakyat to defend their own rights and interests. It cannot be denied that MCA represents the Chinese community,” he said in a press statement yesterday.
Source: The Star
Related News:
Wee: Lim, where are you?
Watch Video:
Why are you afraid to debate Wee, Lim? - Berita Daily
Homeless in George Town - Metro News
From Grade A to Grade E - Nation
Restore greenery on 'Botak Hill' - Metro News
Wee invites Lims to debate tunnel issue
What it means to be Chinese - Plainly Speaking
Related posts:
Tycoon Robert Kuok stands tall amid the bashings from Umno leaders
Labels:
Centre for Strategic Engagement (Cense),
Chinese,
DAP.UMNO,
GE14,
Gerakan Rakyat,
Lim Guan Eng,
Malaysia,
MCA,
Politics,
Rita Sim,
Wee Ka Siong
Rightways - Sowing the seeds of Success:
Think Global, Act Local; Change & Grow Rich; Sow as You Reap & Soar High!
Richard Tan
MBA(UK), BCA(NZ), AMA(USA),MMIM
Wednesday, March 21, 2018
Empowered President Xi warns China will crush ‘any attempt to split country’ in keynote speech
President sends out strong nationalist message in closing speech to National People’s Congress(NPC)
President Xi Jinping spoke at the closing of China’s National People’s Congress. |
https://youtu.be/I1MRZBZ0u4Q
https://youtu.be/FdN9xxyAkyc
This year’s NPC carried special meaning for Xi. His status as the most powerful Chinese leader in decades was cemented over the course of the 16-day event.
The constitution was changed to remove presidential term limits – allowing him to stay on as head of state for as long as he sees fit.
The political theories that bear his name were also enshrined in the constitution, giving him the same political status as Mao Zedong and the former paramount leader Deng Xiaoping.
He also reshuffled the government and placed his trusted aides, including vice-president Wang Qishan, in key positions concerning the economy, relations with the US and the battle against corruption.
Xi addressed the legislature and the nation as the landmark session closed.
Six key points from Xi Jinping’s speech wrapping up China’s national congress
The end
Xi has finished his speech. Premier Li Keqiang will be holding a press conference at around 10:30 am. Journalists are expected to ask him about China-US trade wars and other issues of concern. The South China Morning Post will be covering it live.
More Marxism
He now returns to what he describes as the importance of the Communist rule in China by urging people to rally behind the party.
In his closing remarks also says China will continue its campaign to “root out” all corruption and purify the party.
China’s place in the world
He continues on the theme by setting out his vision for China’s place in the world - highlighting his signature Belt and Road policy
Xi’s speech has already lasted for half an hour, compared with his 20-minute speech five years ago when he began his first term.
He stresses to other countries.
“Only those who are threats to others will see others as a threat to them,” he says, without specifying which country he is referring to.
National sovereignty
The nationalist theme continues with comments about Hong Kong and Taiwan and a promise to crush any efforts to “divide the nation”, which is greeted with loud applause.
Xi Jinping vows to strengthen national identity in Hong Kong and Macau
He emphasises that it will be “impossible” for any parts of China to leave the country, highlighting Beijing’s hardline stance towards any talk of independence for Taiwan and Hong Kong.
Xi makes sure to highlight China’s long-standing cultural history, as the roots for its present and future development. His use of the phrase “great revival of the Chinese nation” has been a slogan closely tied with him since he became president in 2012
Xi also refers to Marxist theory and the thoughts of Mao Zedong and Deng Xiaoping. He also mentions the theories by his two predecessors Jiang Zemin and Hu Jintao, without mentioning their names.
He said stresses the role of the Communist party in engaging different sectors of the society.
He also says China will develop into a culturally strong country before highlighting his signature pledges of eradicating poverty and caring for the sick and elderly.
China ends presidential term limits, but what other changes were made to the constitution?
History and tradition
Xi’s first five years in office have been characterised by a nationalist agenda and in keeping with the theme his speech is full of references to ancient Chinese literature and folklore to support his vision for “great Chinese revival”.
By contrast, five years ago he began his speech by thanking his predecessor Hu Jintao for his 10-year governance
Xi tries to rally the public saying China has “defeated all fierce invaders and defended the freedom of Chinese”.
Xi puts special emphasis on the unity of the country. “A country that is split cannot make great progress,” he says.
How the Chinese government works?
Xi Jinping is the most powerful figure in China's political system, and
his influence mainly comes from his position as the general secretary of
the Chinese Communist Party.
Stressing the innovative nature of the people
Xi Jinping, known for his nationalism, highlights the importance of Chinese ancient philosophers, and inventions, and ancient literature and architecture.
“I believe, as long as 1.3 billion can keep the great innovative spirit (like in ancient times), we can create miracles one after another.”
Xi Jinping begins to address the Legislature
Xi starts his speech by expressing gratitude to the support he received for the second term of his presidency. He stresses he would abide by the constitution.
He then states that all government officials should remember that they should always serve the public and put public interest first.
“People are the real heroes,” he said.
Source: https://www.scmp.com/news
Related articles:
Stressing the innovative nature of the people
Xi Jinping, known for his nationalism, highlights the importance of Chinese ancient philosophers, and inventions, and ancient literature and architecture.
“I believe, as long as 1.3 billion can keep the great innovative spirit (like in ancient times), we can create miracles one after another.”
Xi Jinping begins to address the Legislature
Xi starts his speech by expressing gratitude to the support he received for the second term of his presidency. He stresses he would abide by the constitution.
He then states that all government officials should remember that they should always serve the public and put public interest first.
“People are the real heroes,” he said.
Source: https://www.scmp.com/news
Related articles:
Xi tries to rally support for Chinese dream in nationalist speech
Premier calls on US to be rational about tariffs, trade
Xi vows to safeguard territorial integrity, warns separatists
Chinese President Xi Jinping vowed to safeguard China's territorial integrity and has a stern warning to those who would attempt to split the country, during his speech at the closing of this year's National People's Congress (NPC) on Tuesday.Related post:
China Constitutional change accords with times
China launched a scaled-down model of a
multipurpose, reusable space plane from a test site in the Gobi Desert
late last month, part of...
Singing and dancing to world domination
Well-regarded: Kuok in his office in Hong Kong. Picture taken from ‘Robert Kuok: A Memoir’. https://youtu.be/mP1ju6_e4Vw http...
Labels:
“two sessions” 2018,
China,
Chinese,
Chinese People's Political Consultative Conference (CPPCC),
CPC,
National Peoples Congress (NPC),
Politics
Rightways - Sowing the seeds of Success:
Think Global, Act Local; Change & Grow Rich; Sow as You Reap & Soar High!
Richard Tan
MBA(UK), BCA(NZ), AMA(USA),MMIM
Tuesday, March 20, 2018
More worms open up from Penang Undersea Tunnel project as Datuk Seri photos hots up
Pricey seizure: The luxury vehicles,
(clockwise from top left) a Toyota Vellfire, a Mercedes-Benz, a Land
Rover and a Hyundai Starex, seized from the Datuk Seri.
|
Happy meeting: In a picture that has appeared in cyberspace, Lim and the ‘Datuk Seri’ are seen in the back seat of a car.
|
PETALING JAYA: Another photo of Lim Guan Eng with a man who resembles the Datuk Seri being investigated by the Malaysian Anti-Corruption Commission (MACC) has emerged on cyberspace.
The photo shows the Penang Chief Minister and the 37-year-old Datuk Seri who is being investigated for allegedly receiving RM19mil to “help settle” the MACC’s probe on Penang’s controversial undersea tunnel and three highways project.
The photo was taken in a car with Lim and the Datuk Seri together in the back seat, both smiling widely. A caption that went with the photograph claimed that it was taken in August last year.
In early March, a photo of Lim and the Datuk Seri showing both of them wearing socks but no shoes standing on a carpeted floor, went viral.
The photo is believed to have been taken at a private residence.
MCA publicity spokesman Datuk Seri Ti Lian Ker pointed out that when the first photograph emerged on social media, the chief minister conveniently brushed it off, claiming that he had taken photographs with numerous personalities and denied having any dealings with the Datuk Seri.
“He even retaliated by showing a picture of the same Datuk Seri posing for a photograph with Star Media Group managing director and CEO Datuk Seri Wong Chun Wai.
“Wong responded by saying that there were many pictures of him taken with people he barely knew at events he attended and noted he was wearing shoes in the photograph,” Ti said in a statement.
But now with a second photograph of Lim and the Datuk Seri emerging so soon, Ti said, “so, what is Guan Eng’s excuse this time?”
Datuk Seri photo issue hots up
Pictured response: Lim revealing the
pictures of the Datuk Seri’s wife with a Barisan leader at a press
conference in Komtar, Penang.
|
PETALING JAYA: Lim Guan Eng’s refusal to come clean on his relationship with the Datuk Seri being investigated for graft and his “revelation” of photos of the latter’s wife with Barisan leaders are acts of desperation, says Barisan Nasional Strategic Communications deputy director Datuk Eric See-To.
He slammed the Penang Chief Minister for not explaining his relationship with the Datuk Seri, who allegedly received RM19mil to help close the Malaysian Anti-Corruption Commission (MACC) investigation files on Penang’s RM6.34bil undersea tunnel and three paired roads project.
“Firstly, the wife is a media personality whose job would invariably include meeting government leaders.
“Secondly, those photos were uploaded to her public social media account by her, unlike Guan Eng,” he said.
Two photos of Lim and the Datuk Seri have emerged so far.
The first showed both wearing socks, but no shoes, standing on a carpeted floor, while the second was a wefie of both men smiling widely in the back seat of a car.
At a press conference in George Town yesterday, Lim distributed photos of the Datuk Seri’s wife with Barisan leaders to the press in response to the claims that he was close to the Datuk Seri.
“Looking at so many photos of his wife with Barisan leaders, it is clear that both of them are strong Barisan supporters.
“Do not throw stones when you live in glass houses,” Lim said.
However, See-To pointed out that none of the two Barisan ministers who took the photos with the wife had any involvement in the controversial Penang project.
“The Chief Minister’s office had brushed off the first photo implying that he is not close to the suspect, only for a second one to emerge which shows that the relationship is deeper than his office suggested,” he said.
Meanwhile, Lim also told the press conference that the wefie of him and the Datuk Seri was taken with the latter’s handphone.
He added that the real question was who leaked the photos when only the Datuk Seri had them in his handphone.
“Even I do not have them,” he said.
Lim reiterated that he had “taken many photographs with many personalities” and could not recall how many times or where they were taken.
He said there may be more photos of him and the Datuk Seri, the latter’s wife and family members.
“Does taking photos with him, his wife and family make us close buddies?” he asked.
On the same issue, Datuk Seri S. Vell Paari called on Penang Deputy Chief Minister II Dr P. Ramasamy to stop being an apologist for Lim.
The MIC treasurer-general said Dr Ramasamy should have joined him in questioning Lim’s role in the Penang project.
“Ramasamy should now be brave and encourage his boss to make police reports if those two photos are fake, or he should insist that his boss sue me if he believes I had slandered him,” he said in a statement.
Vell Paari claimed that he knew with certainty that the first photo was taken at the Datuk Seri’s lavish house in Petaling Jaya in July last year.
He also claimed that the wefie of Lim and the Datuk Seri was taken in August last year.
The car belongs to the owner of the special purpose vehicle set up for the tunnel project, he claimed.
MIC wants Lim to explain relationship with Datuk Seri
Vell Paari appointed as new MIC Treas |
PETALING JAYA: Penang Chief Minister Lim Guan Eng must explain his relationship with a Datuk Seri being investigated in the Penang undersea tunnel project graft probe, said MIC treasurer-general Datuk Seri S. Vell Paari.
Vell Paari said Lim and his party DAP had a duty to the Indian community to “explain” their relationship with this suspect, who had “betrayed the trust of and cheated” the community.
“That suspect is involved in a case where many Malaysian Indians were cheated of their hard-earned money and savings.
“Datuk R. Ramanan and I had exposed him less than two years ago.
“As such, many individuals who are familiar with the suspect have told me that the photo of the Penang Chief Minister with the suspect was indeed taken in the lavish private home of the suspect,” said Vell Paari.
He said Lim and DAP must explain “when and why” the chief minister had visited the suspect’s house.
The 37-year-old Datuk Seri is being investigated by MACC for allegedly receiving RM19mil from the project’s main contractor Consortium Zenith Construction to “help settle” the commission’s probe into the controversial RM6.34bil project comprising an undersea tunnel and three main highways.
Lim’s office subsequently issued a statement saying that linking the Chief Minister to the Datuk Seri was a “disgusting smear attempt”.
“What dealings or businesses does he have with this Malaysian Anti-Corruption Commission suspect?
“If the photo was indeed not from the suspect’s house, the Penang CM and DAP are more than welcome to sue me,” said Vell Paari.
Sources: The Star
Related posts:
'In the very first place, does Penang really
need an undersea tunnel and three main highways? Are the new
infrastructures going to so..
PTMP: Losses making fashion company in Penang Undersea Tunnel Project
Penang govt shocked at payment of RM22m to Datuk Seri to cover-up alleged corruption in undersea tunnel project.
Citizens' frustrations, Malaysian youths worry about future; MCA dares to face criticism
Related News:
Political analyst: Guan Eng seems to know 'Datuk Seri' being probed by MAC
Guan Eng shows photos of BN leaders with wife of 'Datuk Seri'
Guan Eng trying to confuse public with photo, says Wee - Nation
Lim Guan Eng has totally missed the point when he revealed the photo of Barisan Nasional leaders with the wife of a Datuk Seri being investigated for graft, said MCA deputy president Datuk Seri Dr Wee Ka Siong.
Accept debate challenge if you have nothing to hide, Ti tells Guan Eng
Wee: Guan Eng not brave enough to answer questions on tunnel
From Grade A to Grade E
GEORGE
TOWN: Penang MCA Youth criticised the state government’s performance
over the past 10 years which had allegedly “left Penang in a mess.”
Guan Eng reiterates that CZC met requirements - Nation
Accounts frozen, house and cars seized
Mystery Datuk Seri in RM19m probe
Under
remand: MACC officers escorting the Datuk Seri away after obtaining a
six-day remand order from the magistrate's court in Putrajaya - Mohd
Sahar Misni/The Star
Labels:
Barisan Nasional,
Corruptions,
DAP,
datuk seri,
Eric See To,
Lim Guan Eng,
MACC,
MIC,
Penang undersea tunnel project,
Politics,
Vell Paari
Rightways - Sowing the seeds of Success:
Think Global, Act Local; Change & Grow Rich; Sow as You Reap & Soar High!
Richard Tan
MBA(UK), BCA(NZ), AMA(USA),MMIM
Wednesday, March 14, 2018
Did Trump just launch a trade war?
https://youtu.be/SGatqAGp1YM
LAST Thursday, US President Donald Trump signed a proclamation to raise tariffs for steel by 25% and for aluminium by 10%.
It sent shockwaves across the world not only because of the losses to metal exporters, but due to what it may signify – the start of a global trade war that will cause economic disruption and may damage, if not destroy, the multilateral trade system.
The United States, joined by Europe, has been the anchor of the global free trade system since the end of World War II. In practice, this rhetoric of free trade was hypocritical because the West continues to have very high protection of their agriculture sector, which cannot compete with those of many developing countries.
Moreover, the developed countries champion high intellectual property rights standards through an agreement in the World Trade Organisation (WTO), under which their companies create monopolies, set high prices and make excessive profits. This is against the free competition touted by free-trade advocates.
In manufacturing and metals, the developed countries have pressed the others to join them in cutting or removing tariffs and to expand trade, through negotiations in the WTO and its predecessor, the GATT (General Agreement on Tariffs and Trade).
They have argued that poorer countries can best grow richer by cutting their tariffs, thus benefiting consumers and forcing their producers to become more efficient.
Trump’s move upends the ideology of free trade. According to his America First philosophy, if cheaper imports displaced local steel and aluminium producers, these imports must be stopped because a country must make its own key products.
Since the US has been the flag-bearer of the free-trade religion, this has profound effects on other countries. If the leader has changed its mind and now believes in openly protecting its industries, so too can other countries. The basis for liberal trade is destroyed and the old rationale for protectionism is revived.
The WTO rules allow countries adversely affected by imports to take certain measures, but they have to prove that the producers of exporting countries unfairly receive subsidies or set lower prices for their exports. Or they can take “safeguard” measures of raising tariffs but only for a limited period to help affected local producers to adjust.
Trump however made use of a little-used national security clause (Section 232) in the US trade laws to justify his big jump in steel and aluminium tariffs. The clause allows the President to take trade action to defend security. The WTO also has a security exception in GATT Article XXI.
But what constitutes national security is not clearly spelt out either in the US or the WTO laws, and countries can abuse this clause.
The Trump administration tried to justify invoking the security factor by saying steel and aluminium are needed to make weapons of war. But this was undercut by giving exemptions from the increased duties to Canada and Mexico due to their membership of Nafta, the North American Free Trade Agreement that includes the US. The exemptions for reasons unrelated to security exposes the security rationale as fake.
Other countries are angry and preparing to retaliate. The European Union has drawn up a list of American products on which its member countries will raise tariffs. China warned it would make an appropriate and necessary response.
At the WTO General Council on March 8, the US action was attacked. Many countries condemned the unilateral move and the use of the national security rationale. Canada said the security issue “may be opening a Pandora’s box we would not be able to close”.
Brazil expressed deep concern about an elastic or broad application of the national security exception. India said the national security exception under GATT should not be misused and unilateral measures have no place in the trade system. China argued that the over-protected domestic industry would never be able to solve its problems through protectionism.
Many WTO member states will most likely take the US to a dispute panel, and the outcome will have strong consequences. If the panel rules for the US, then other countries will view the decision as permission for all countries to take protectionist measures on the grounds of security.
If the decision goes against the US, it will strengthen the anti-liberal trade faction and tendency in the Trump administration to ignore or even leave the WTO.
Malaysia will be affected by the new tariffs as it exports 96,000 tonnes of steel to the US. But this is small compared to how much steel we import.
The bigger blow to us is the US measure in January to slap up to 30% tariffs on solar cells and panels. Malaysia is the largest photovoltaic cells exporter to the US, with a market share of 30%. The tariff increase will have a big impact on the solar industry, a solar company chief was quoted as saying last month.
The next big protectionist move from the US may come in a few weeks when Trump decides what action, if any, to take against China after considering a Commerce Department report on China’s trade and intellectual property practices.
If strong action against China is announced, China can be expected to take strong retaliatory action.
That may escalate the trade war that is already under way.
Martin Khor is executive director of the South Centre. The views expressed here are entirely his own.
LAST Thursday, US President Donald Trump signed a proclamation to raise tariffs for steel by 25% and for aluminium by 10%.
It sent shockwaves across the world not only because of the losses to metal exporters, but due to what it may signify – the start of a global trade war that will cause economic disruption and may damage, if not destroy, the multilateral trade system.
The United States, joined by Europe, has been the anchor of the global free trade system since the end of World War II. In practice, this rhetoric of free trade was hypocritical because the West continues to have very high protection of their agriculture sector, which cannot compete with those of many developing countries.
Moreover, the developed countries champion high intellectual property rights standards through an agreement in the World Trade Organisation (WTO), under which their companies create monopolies, set high prices and make excessive profits. This is against the free competition touted by free-trade advocates.
In manufacturing and metals, the developed countries have pressed the others to join them in cutting or removing tariffs and to expand trade, through negotiations in the WTO and its predecessor, the GATT (General Agreement on Tariffs and Trade).
They have argued that poorer countries can best grow richer by cutting their tariffs, thus benefiting consumers and forcing their producers to become more efficient.
Trump’s move upends the ideology of free trade. According to his America First philosophy, if cheaper imports displaced local steel and aluminium producers, these imports must be stopped because a country must make its own key products.
Since the US has been the flag-bearer of the free-trade religion, this has profound effects on other countries. If the leader has changed its mind and now believes in openly protecting its industries, so too can other countries. The basis for liberal trade is destroyed and the old rationale for protectionism is revived.
The WTO rules allow countries adversely affected by imports to take certain measures, but they have to prove that the producers of exporting countries unfairly receive subsidies or set lower prices for their exports. Or they can take “safeguard” measures of raising tariffs but only for a limited period to help affected local producers to adjust.
Trump however made use of a little-used national security clause (Section 232) in the US trade laws to justify his big jump in steel and aluminium tariffs. The clause allows the President to take trade action to defend security. The WTO also has a security exception in GATT Article XXI.
But what constitutes national security is not clearly spelt out either in the US or the WTO laws, and countries can abuse this clause.
The Trump administration tried to justify invoking the security factor by saying steel and aluminium are needed to make weapons of war. But this was undercut by giving exemptions from the increased duties to Canada and Mexico due to their membership of Nafta, the North American Free Trade Agreement that includes the US. The exemptions for reasons unrelated to security exposes the security rationale as fake.
Other countries are angry and preparing to retaliate. The European Union has drawn up a list of American products on which its member countries will raise tariffs. China warned it would make an appropriate and necessary response.
At the WTO General Council on March 8, the US action was attacked. Many countries condemned the unilateral move and the use of the national security rationale. Canada said the security issue “may be opening a Pandora’s box we would not be able to close”.
Brazil expressed deep concern about an elastic or broad application of the national security exception. India said the national security exception under GATT should not be misused and unilateral measures have no place in the trade system. China argued that the over-protected domestic industry would never be able to solve its problems through protectionism.
Many WTO member states will most likely take the US to a dispute panel, and the outcome will have strong consequences. If the panel rules for the US, then other countries will view the decision as permission for all countries to take protectionist measures on the grounds of security.
If the decision goes against the US, it will strengthen the anti-liberal trade faction and tendency in the Trump administration to ignore or even leave the WTO.
Malaysia will be affected by the new tariffs as it exports 96,000 tonnes of steel to the US. But this is small compared to how much steel we import.
The bigger blow to us is the US measure in January to slap up to 30% tariffs on solar cells and panels. Malaysia is the largest photovoltaic cells exporter to the US, with a market share of 30%. The tariff increase will have a big impact on the solar industry, a solar company chief was quoted as saying last month.
The next big protectionist move from the US may come in a few weeks when Trump decides what action, if any, to take against China after considering a Commerce Department report on China’s trade and intellectual property practices.
If strong action against China is announced, China can be expected to take strong retaliatory action.
That may escalate the trade war that is already under way.
Related News
Donald Trump: Trade War Threatens Germany and Europe
Did Trump Just Start a Global Trade War? - Bloomberg
Did Trump Just Launch a Trade War? | Watching America
Why Donald Trump's steel trade war is just the start
Trump's steel and aluminum tariffs threaten a trade war
Related post:
Western system not reference for China’s Constitutional change The ongoing annual session of the 13th
Labels:
China,
Economy and Business,
Global trends,
Malaysia,
Martin Khor,
Politics,
The World,
Trade War,
US President Donald Trump,
USA,
WHO,
World Trade Organization
Rightways - Sowing the seeds of Success:
Think Global, Act Local; Change & Grow Rich; Sow as You Reap & Soar High!
Richard Tan
MBA(UK), BCA(NZ), AMA(USA),MMIM
Subscribe to:
Posts (Atom)