this is the business briefing. i'm sally bundock. a new day, a new set of tariffs: the us says it's ready to hit china with additional duties on $200 billion worth of imports. and virtual technology isn't just for gaming anymore. we'll find out how some businesses are using it to attract customers. and on the markets in asia stocks are down as trump ups the ante and releases the biggest list yet of chinese goods it may hit with tariff increases. let us begin with the trade stand—off between the us and china. president trump has ordered the us trade representative robert lighthizer to start the process of imposing 10% tariffs on an additional $200 billion worth of chinese goods,

this includes tv components and refridgerators. washington says this latest move is in response to china's retaliation and it's "failure" to change its practices. china's assistant commerce minister has just responded saying the proposed tariffs harms the world trade organization system and hurts globalization. china added that the only correct choice for relations was cooperation. so what's behind the escalating tensions? just last week the us began imposing tariffs on $34 billion of chinese goods — president trump argues china is stealing intellectual property rights from foreign companies. china hit back with a similar amount of tariffs of its own and just this week premier li keqiang used a visit to germany to reiterate that "china is strongly seeking to open up commercially" — which is what other countries want to see. another area of contention is the subsidies

china's government gives to company's that export their goods. research from the london school of economics suggests these could be worth $168 billion a year. other issues including restrictions such as discretionary enforcement of regulations and licencing requirements are why 46% of european businesses in china say they miss out on business opportunities in the country. so, how are the markets reacting to the new sanctions? let's go to our asia business hub where rico hizon is following developments. this is not looking good, but the knee—jerk reaction is what we would expect. absolutely. asia's three session winning streak is over, hit bya session winning streak is over, hit by a narrow the tariff storms. —— hit by another. this is because the

relations between the worlds's biggest economies is spooking investors. the hang seng ended 1.4% lower. the japanese yen is urging against the us dollar. hong kong and shanghai are losing about 2%. singapore is giving away 1.5%. sydney, taipei, jakarta, all sharply lower. across the board, most of the indices are in negative territory. although traders are saying nothing is currently rigid in stone with the ta riffs is currently rigid in stone with the tariffs not to come in for some time. it goes to show how fragile markets around the transport talk. but some have suggested this is a us

ploy to get china back to the negotiating table. they knee—jerk reaction indeed but definitely investors are taking profits in today's's treading session. geoffrey yu is head of investment at ubs wealth management. look to the programme. and you are based in london. raise the level. but born in china and have family in china. give us your take on how this is all unfolding. it seems to be getting worse, not better. markets have been surprised that washington has pushed so far. beijing's response has been trained to work out what the us actually wants at this point. but it is the rental market is. there are many ways a wound this. companies are applying for exemptions. we saw this with the original tariffs. —— but it cuts the

cycle short to some extent. you can get the supply chain disruptions and you mention components, just now, as the lineker be hit. that is only that will impact their bottom line for us consumers and households. what you think about donald trump's stands on this? you know, arguing we are doing this because china is not opening up its market, it isn't a level playing field, when it comes to things that intellectual property rights etc, how foreign companies are treated in china. is this a hard sta nce are treated in china. is this a hard stance that will see results eventually, do you think? europe and japan have endorsed this position and china has not exactly pushed back against it. however china would much prefer would europe has been doing as in going to the wto, preserving the multilateral framework, not resorting to

bilateral shocks and spouts. that is what china is trying to preserved. china is trying to preserve that and europe has been playing again for a while, but some say it does not get results. that certainly is donald trump's position. i believe from the administration they are floating the view that maybe the us should exit the wto. is this a negotiating ploy? but this is where china and the allies should push back and tried to dismantle that. in terms of global growth, there are a lot of people who are very die and good about the impact of this will have lachie weller trade organisation, the rob bagg, the imf — your thoughts? —— like the world trade organization, the world bank. if you look at the growth forecast for next year, we will not anywhere near that if we have a full—blown trade war. will not anywhere near that if we have a full-blown trade war. thank you for giving us your perspective.

we'll keep you up—to—date with every twist and turn. you can rely on us without. let us talk about virtual reality, now. virtual reality is moving beyond the gaming industry. in asia, more and more companies are using vr as well as augmented reality and it's aimed at getting consumers to interact and engage more closely with the compa ny‘s products. 0ur china correspondent steve mcdonell looks at how the virtual world is catching on in the business world. right now, virtual reality is very limited but i hope there'll be more competition and more people to enlighten this market. these people are fighting zombies, at least in their virtual world. and you can see how physical it is.

but if you want to play this game, you've got to get up out of the lounge room and come to the arcade. we're definitely giving a premium service. i assume in a year's time, that will be normal. for example, if they want to go shopping, press the shopping button. a lot of people look at al and vr and think about it as a gimmick. it hasn't reached a very mature stage yet, but it's getting there. in the next few years, the aland vr industry willjust boom. virtual reality can also have quite serious applications.

this is a training exercise, what's going on here? inside there are things that have not been done right in terms of health and safety, so you need to spot them and fix them. if you don't, you see the consequences! this is crazy! that was fun. you get the feeling businesses and organisations are still only scratching the surface in terms of the capabilities of this technology. but in the future, virtual reality will be seen and used in all manner of enterprises. stephen mcdonell there. iam sure i am sure it will. now let's brief you on some other business stories.

airbus has scored a key victory against its arch rival boeing. us airlinejetblue is buying 60 of its a220—300 narrowbodyjets, at a catalogue price of $5.37 billion. the a220 is the new name for the bombardier c—series. airbus has taken majority control of the loss—making montreal—based aircraft program, with bombardier and quebec as minority partners. a federaljudge in the united states has cleared the way for hundreds of lawsuits against the giant agrichemical manufacturer, monsanto. the cases centre on claims that a weed—killer called roundup — that's made by the firm — is linked to cancer. monsanto insists that numerous scientific studies have failed to establish a link. up next, newsbriefing.

first, lord carrington, the former foreign secretary, has died at the age of 99. he was the last surviving member of the postwar government of sir winston churchill. lord carrington served as a tank commander in the second world war and his long ministerial career ended when he resigned at the time of the argentine invasion of the falkland islands in 1982. 0ur diplomatic correspondent james robbins looks back at his long life. people looking for an example of a british politician resigning as a matter of honour often point to the carrington. he was foreign secretary when argentina invaded the falkland islands. britain was unprepared and the foreign office blamed for ignoring intelligence.”

the foreign office blamed for ignoring intelligence. i am responsible and i thought honourably that i should go. a british task force left to liberate the falklands and an official enquiry led cleared lord carrington of any responsibility. the young peter carington had been a soldier in the second. a hereditary peer, a highly educated and charming, he was the last survivor of the winston churchill's government. margaret thatcher appointed foreign secretary 1979. he played a major role in the legal war in rhodesia and helping the birth of independent zimbabwe. he spent four years as nato secretary general, and then in the 70s took on a role as eu negotiator as yugoslavia filter will. retire from public service, it was clear it should be a clean break. is a great mistake when you're quite odd to pretended you are not to go along and poor people with your speeches.

i think if you have done your bit, shut up. lord carington was the last patrician tory autocrat to hold such high office. this is the briefing. the headlines: europe's record on defence spending is attacked by president trump as he arrives in brussels for a key nato summit. france beat belgium to secure a world cup final place, bringing paris to a standstill. the 12 boys and their football coach rescued from flooded caves, in northern thailand, are now being treated in hospital. officials say they're in good health and high spirits. now it's time to look at the stories that are making the headlines in the media across the world: we begin with the front page of the daily telegraph and president trump claiming that britain is a "country in turmoil".

his comments came as mr trump left washington for his trip to europe, for a nato summit. he arrives in the uk tomorrow. the guardian carries an obituary for lord carrington, a distinguished politician who served under winston churchill, was general secretaery of nato, and has died at the age of 99. now over to the financial times and an article on facebook. it says the uk's data protection watchdog has fined facebook over the cambridge analytica data scandal. now a story on the front of the new york times and the news that china is investing billions in high—tech surveillance systems to track and control its people. and finally, we can't ignore it and who would want to. it's all over the papers, of course, including the daily mail and mail online. it's the day of the semi—final of the world cup between croatia and england.

with me isjonathan charles, director of communications at the european bank for reconstruction and development. it isa it is a busy day. a busy week, actually. trumps arrival in london, which is tomorrow, of course. he made various comments as he was boarding his plan. the headline says it all. this big character, he likes to say things, does not go for the diplomatic method. he