security

Trade, technology and security at risk in US-China feud – Hamilton Journal News


The United States is China’s biggest single-country export market, even after President Donald Trump imposed punitive tariffs on Chinese goods. And China is the No. 3 market for American exporters, as well as a huge market for goods and services produced in China by U.S. companies ranging from General Motors Co. to Burger King.

Chinese purchases of American farm goods, semiconductors and other goods declined 11.4% last year but still exceeded $100 billion. Exports to China support just under 1 million American jobs, according to the U.S.-China Business Council, though that was down 10% from 2017’s peak.

China is the biggest export market for Iowa and other American farm states, which were slammed when Beijing suspended imports of soybeans and raised tariffs on pork and other goods.

That briefly boosted sales for soybean exporters in Brazil and Argentina, though China resumed buying lower-priced American beans under the “Phase 1” trade truce signed in January.

But if the two can’t resolve broader differences on trade, it will be a blow not only to their exporters but also to other Asian economies that supply China’s factories with raw materials and components.

___

TECHNOLOGY

U.S. and Chinese producers of telecom, computer, medical and other technology and their markets are tightly interwoven. Apple, Dell, Hewlett-Packard and others rely on Chinese factories to assemble most of their smartphones, computers and other consumer electronics. Those factories need processor chips and other components from the United States, Japan, Taiwan and Europe.

The disruption caused by moves including the Trump administration’s curbs on Chinese tech giant Huawei’s access to U.S. components and technology threatens to disrupt those flows and cost suppliers, including Silicon Valley companies, billions of dollars in lost revenue.

China is also a top market for Apple and other U.S. tech brands, and is increasingly becoming a technology competitor with its own brands in smartphones, medical equipment and other fields.

The United States often is the top market for China’s highest-value-added goods. Beijing has been urging exporters to find other markets, but many say Asian and even European markets won’t buy such high-value goods.

___

SECURITY

While the U.S. has long been the predominant military power in the Pacific, China now has two operational aircraft carriers and an arsenal of missiles seen as a threat to U.S. vessels and bases in the region.

Military tensions have largely focused on the South China Sea, a crucial waterway that is the subject of overlapping territorial claims by China and several smaller Asian nations.

In 2018, a Chinese destroyer came perilously close to colliding with a U.S. destroyer, the USS Decatur, while executing what the Navy called an “unsafe and unprofessional maneuver” in the South China Sea.

A Chinese fighter jet collided with a U.S. Navy surveillance plane in international airspace over the South China Sea in 2001, leading to major diplomatic incident after the U.S. plane made an emergency landing on a Chinese island.

Taiwan is another potential flashpoint. China claims the self-governing island as its territory, to be taken by force if necessary. The U.S. is bound by its own law to ensure the island has a credible defense and has approved military sales to Taiwan under Trump.

Taiwan’s foreign minister said last week that Chinese military flights near the island have been taking place on a near-daily basis, more frequently than previously reported.

Washington upped the ante earlier this month by declaring that it did not recognize most of China’s maritime claims in the South China Sea, a break with its previous policy of not taking a stance on the sovereignty disputes.

A Chinese police officer checks a man wearing a shirt with the words "Send away the plague, Sling Out USA!" outside the former United States Consulate in Chengdu in southwest China's Sichuan province, Monday, July 27, 2020. China ordered the United States on Friday to close its consulate in the western city of Chengdu, ratcheting up a diplomatic conflict at a time when relations have sunk to their lowest level in decades.(AP Photo/Ng Han Guan)

A Chinese police officer checks a man wearing a shirt with the words “Send away the plague, Sling Out USA!” outside the former United States Consulate in Chengdu in southwest China’s Sichuan province, Monday, July 27, 2020. China ordered the United States on Friday to close its consulate in the western city of Chengdu, ratcheting up a diplomatic conflict at a time when relations have sunk to their lowest level in decades.(AP Photo/Ng Han Guan)

Credit: Ng Han Guan

Credit: Ng Han Guan

Chinese SWAT officers salute each other at the former United States Consulate in Chengdu in southwest China's Sichuan province on Monday, July 27, 2020. Chinese authorities took control of the former U.S. consulate in the southwestern Chinese city on Monday after it was ordered closed amid rising tensions between the global powers.(AP Photo/Ng Han Guan)

Chinese SWAT officers salute each other at the former United States Consulate in Chengdu in southwest China’s Sichuan province on Monday, July 27, 2020. Chinese authorities took control of the former U.S. consulate in the southwestern Chinese city on Monday after it was ordered closed amid rising tensions between the global powers.(AP Photo/Ng Han Guan)

Credit: Ng Han Guan

Credit: Ng Han Guan

Chinese policemen march past the former United States Consulate in Chengdu in southwest China's Sichuan province on Monday, July 27, 2020. Chinese authorities took control of the former U.S. consulate in the southwestern Chinese city on Monday after it was ordered closed amid rising tensions between the global powers. (AP Photo/Ng Han Guan)

Chinese policemen march past the former United States Consulate in Chengdu in southwest China’s Sichuan province on Monday, July 27, 2020. Chinese authorities took control of the former U.S. consulate in the southwestern Chinese city on Monday after it was ordered closed amid rising tensions between the global powers. (AP Photo/Ng Han Guan)

Credit: Ng Han Guan

Credit: Ng Han Guan

A Chinese man is taken away after shouting pro-China slogans outside the former United States Consulate in Chengdu in southwest China's Sichuan province on Monday, July 27, 2020. Chinese authorities took control of the former U.S. consulate in the southwestern Chinese city of Chengdu on Monday after it was ordered closed amid rising tensions between the global powers. (AP Photo/Ng Han Guan)

A Chinese man is taken away after shouting pro-China slogans outside the former United States Consulate in Chengdu in southwest China’s Sichuan province on Monday, July 27, 2020. Chinese authorities took control of the former U.S. consulate in the southwestern Chinese city of Chengdu on Monday after it was ordered closed amid rising tensions between the global powers. (AP Photo/Ng Han Guan)

Credit: Ng Han Guan

Credit: Ng Han Guan





READ SOURCE

Leave a Reply