16, January 2020
US and China sign ‘phase one’ trade deal, ending dramatic 18-month tit-for-tat 0
The United States and China signed an initial trade deal on Wednesday that will roll back some tariffs and boost Chinese purchases of U.S. products, defusing an 18-month row between the world’s two largest economies but leaving a number of sore spots unresolved.
Beijing and Washington touted the “Phase 1” agreement as a step forward after months of start-and-stop talks, and investors greeted the news with relief. Even so, there was skepticism the U.S.-China trade relationship was now firmly on the mend.
The deal fails to address structural economic issues that led to the trade conflict, does not fully eliminate the tariffs that have slowed the global economy, and sets hard-to-achieve purchase targets, analysts and industry leaders said.
While acknowledging the need for further negotiations with China to solve a host of other problems, President Donald Trump hailed the agreement as a win for the U.S. economy and his administration’s trade policies.
“Together, we are righting the wrongs of the past and delivering a future of economic justice and security for American workers, farmers and families,” Trump said in rambling remarks at the White House alongside U.S. and Chinese officials.
Chinese Vice Premier Liu He read a letter from President Xi Jinping in which the Chinese leader praised the deal as a sign the two countries could resolve their differences with dialogue.
The centerpiece of the deal is a pledge by China to purchase at least an additional $200 billion worth of U.S. farm products and other goods and services over two years, above a baseline of $186 billion in purchases in 2017, the White House said.
Commitments include $54 billion in additional energy purchases, $78 billion in additional manufacturing purchases, $32 billion more in farm products, and $38 billion in services, according to a deal document released by the White House.
Liu said Chinese companies would buy $40 billion in U.S. agricultural products annually over the next two years “based on market conditions.” Beijing had balked at committing to buy set amounts of U.S. farm goods earlier, and has inked new soybean contracts with Brazil since the trade war started.
Key world stock market indexes climbed to record highs on hopes the deal would reduce tensions, before closing below those highs, while oil prices slid on doubts the pact will spur world economic growth and boost crude demand.
Soybean futures, which traded 0.4% lower throughout much of the deal signing ceremony, sank even further after Liu’s remarks, a sign that farmers and traders were dubious about the purchase goals.
The deal does not end retaliatory tariffs on American farm exports, makes farmers “increasingly reliant” on Chinese state-controlled purchases, and does not address “big structural changes,” Michelle Erickson-Jones, a wheat farmer and spokeswoman for Farmers for Free Trade, said in a statement.
Trump and his economic advisers had pledged to attack Beijing’s long-standing practice of propping up state-owned companies and flooding international markets with low-priced goods as the trade war heated up.
Although the deal could be a boost to U.S. farmers, automakers and heavy equipment manufacturers, some analysts question China’s ability to divert imports from other trading partners to the United States.
“I find a radical shift in Chinese spending unlikely. I have low expectations for meeting stated goals,” said Jim Paulsen, chief investment strategist at Leuthold Group in Minneapolis. “But I do think the whole negotiation has moved the football forward for both the U.S. and China.”
Trump, who has embraced an “America First” policy aimed at rebalancing global trade in favor of U.S. companies and workers, said China had pledged action to confront the problem of pirated or counterfeited goods and said the deal included strong protection of intellectual property rights.
U.S. Speaker of the House of Representative Nancy Pelosi said Trump’s China strategy had “inflicted deep, long-term damage to American agriculture and rattled our economy in exchange for more of the promises that Beijing has been breaking for years,” in a statement.
Earlier, top White House economic adviser Larry Kudlow told Fox News the agreement would add 0.5 percentage point to U.S. gross domestic product growth in both 2020 and 2021.
Aviation industry sources said Boeing Co was expected to win a major order for wide-body jets from China, including its 787 or 777-9 models, or a mixture of both. Such a deal could ease pressure on the 787 Dreamliner, which has suffered from a broad downturn in demand for large jets, forcing the planemaker to trim production late last year.
CCTV, China’s state-run television outlet, said the deal would satisfy China’s increasingly demanding consumers by supplying products like dairy, poultry, beef, pork, and processed meat from the United States.
Source REUTERS






















18, January 2020
Filipinos turn volcano’s ash, plastic trash into bricks 0
Ash spewed by a Philippine volcano is being mixed with plastic waste to make bricks in an inventive response to the country’s persistent problems of pollution and frequent natural disasters.
The Taal volcano burst into life nearly a week ago, sending towering dust columns into the sky and leaving nearby Binan city coated in fine grey powder.
Environment officials did not just clean up the mess but decided to combine the ash with sand, cement and discarded plastic to form about 5,000 bricks per day for local building projects.
“Instead of just piling up the ashfall somewhere, we are able to turn it into something useful. And it includes plastics, too,” said city environmental officer Rodelio Lee.
The Philippines faces a waste crisis, with a report last year saying it uses a “shocking” amount of single-use plastic, including nearly 60 billion throwaway sachets per year.
It is also plagued by some 20 major storms annually and regular, powerful earthquakes which together kill hundreds of people each year.
Due to its position on the Pacific “Ring of Fire” zone of seismic activity, it also has periodic volcanic eruptions.
Taal’s jets of lava and 15-kilometer (nine-mile) walls of ash have sent more than 70,000 people into evacuation centres and prompted warnings that a far bigger eruption could happen at any time.
With volcanic ash and plastic both in plentiful supply, the officials in Binan see their project as a silver lining.
“During these times, our creativity becomes apparent,” said the mayor of Binan, Arman Dimaguila.
Source: AFP