u.s. and china at the end of the last presidency. in the u.s. and it failed the effort and probably rightly because my understanding is the chinese negative list was unbounded belongnonetheless as studies have shown repeatedly and with respect to china the best way to integrate economies in any way if there cross-border to a direct investments. this has economic benefits in terms of transferred expertise. this has direct job benefits for creating new jobs. this has a political benefit as we saw from japan's investment in the u.s. following the trade difficulties in the 80s and early 90s. and do a bit tomorrow but those responsible parties on both sides of the pacific should realizing that is the goal we should be moving toward in the future. thank you very much. >> thank you verymuch. my colleague will now come up. [applause] >> good morning everyone. my prtationconsists of some of the takeaways from the articles that were contributed to the joint report. i will not try to be exhaustive but i will focus on the causes of the trade friction and pos

u.s. trade policy in china is not possible. because the u.s. exports to china is much smaller than china's exports to the u.s. u.s. export last year, about $130 billion products to china, where china exports $500 billion products to the u.s. so dollar for dollar, only to a limit. so we are thinking about a arbitrarily very bad situation. so if china -- actually, president trump once mentioned china should reduce trade surplus by $100 billion. that's probably, you know, a number that we used as a reference in this hypothetical numerical analysis. >> the trade war would have to go well beyond -- >> oh, yeah. well, of course, yes. yeah. >> just for the record, i don't want to get into a back and forth with my friend jimimg, but the numbers he gave on inflation coming out of the trade war between u.s. and china for the u.s., at least in my opinion, would be vast exaggerations. so just as the -- the scale is different on that issue, i think the idea that there would be significant inflation in the u.s. from this is not something i would rely on as a

u.s. trade policy in china is not possible because the u.s. xports to china is much smaller than china's exports to the u.s. u.s. export last year was about 130 billion-dollar with china exports at $500 billion to the u.s. so dollar for dollar only to a limit. we are thinking about an arbitrarily bad situation. president trump once mentioned china should reduce surplus by $100 billion. that's probably a number that we use as a reference in this hypothetical numerical analysis. >> the trade war would have to go well beyond. >> of course. yes. >> just for the record, i don't want to get into a back-and-forth but the numbers he gave on inflation coming out of the trade war between the u.s. and china, for the u.s., at least in my opinion would be vast exaggerations. just as the scale is different on that issue, i think the idea there would be significant inflation in the u.s. from this is not something i would rely on. >> thank you. >> other questions? >> okay. >> my name is joe i am with new rules for global finance, a nonprofit organization in th

u.s. is also pushing for structural changes to china's economy those talks are being led by u.s. commerce secretary wilbur ross who arrived in beijing on saturday washington and china have threatened to for tat tariffs on goods worth up to one hundred fifty billion dollars each the u.s. wants china to buy more american goods to reduce the trade deficit between the world's two biggest economies were florence italy joins us live now from beijing florence so these talks are broadly about the u.s. trying to reduce its trade deficit with china so how is it proposing to do that and what a both sides actually want. that's right now in the u.s. at the moment buyers about four times more products from the chinese than it sells to china and u.s. president donald trump says he has said he wants to reduce the annual trade deficit between us and china by about two hundred billion dollars within the next two years so how are they proposing to do that well the first step is by getting the chinese to buy more u.s. products now there was some sort of great commitment that the two sides had reached

china has recently said they want increases on u.s. tor trump said he wants to revive. 2017, china imported $400 million worth of coal from the u.s. as isr pressure point, oil. china is the third largest buyer of u.s. exported oil. the tax from the chinese seem to be pressuring the farm belt states andlso the commodity producers, hoping it will lead to some kind of change in stance from the white house. yvonne: how is this likely to play out from here? have we reached the point where both sides can't exactly back out from these tariffs now? om: there is always a chance between now and july the sixth, that someone pulls the rabbit out of the hat. as this morning was suggested, it is looking unlikely. whether or not trump then goes ahead with his 100 billion dollars worth of tariffs is something th ibeing question . it would raise the bar significantly. in terms of how china would react to that, it is unlikely to match that $100 billion. they might tackle u.s. investment in china, particularly around corporate layers that are raising thos

u.s. . from china in the amount of five hundred billion dollars and china imported u.s. goods in the amount of one hundred thirty billion dollars so if you look at those numbers the possibilities of china at first glance seem to be limited if you look at tariffs but having that said china did mention that they also could take qualitative steps are not just quantitative steps what they mean is that is that for example they could start a boy called for u.s. products that could disrupt the supply chains for example for the high tech industries and that could turn out to have unintended consequences for u.s. corporations and also for the u.s. economy talking about the consequences to dell plummeted for the sixth consecutive day already one of the sentiments on the ground what are you hearing. there so far representatives from the ministration call it a trade dispute would not trade war and there's still hope on wall street that all those wearable threats are actually part of the negotiation strategy and that at the end we will not see those terrorists being implemented to but

u.s. and china now u.s. trade officials had arrived in beijing hoping to achieve a few things they wanted to press the chinese for firm commitments now the chinese had said they would substantially increase their purchases of u.s. agricultural and energy products the u.s. were hoping to push them for a specific figure perhaps persuade them to enter into long term contracts the us also hoping to discuss in better protection for intellectual property rights as well as other structural changes to the chinese economy which they say allowed chinese firms to compete unfairly but in the end it appears that none of those things have been achieved and instead china appears to have fired a warning shot at the u.s. now the state media is quote is saying that the chinese are now and saying that any agreement reached between china and the u.s. during these trade talks will be void if the u.s. pushes ahead with imposing trade sanctions including terrorists now this is clearly a reference to the u.s. threatening or really

u.s. exports to china were worth one hundred thirty billion dollars while u.s. imports from china exceeded five hundred billion so the difference of the trade deficit was also a record high of three hundred and seventy billion well let's bring in our guests now joining us from london is philip le grain political economist and former special advisor to the director general of the world trade organization in beijing is i'm the tangan china political analyst who advises the chinese government on economic and development issues and from birmingham in the united kingdom is scott lucas professor of american politics at the university of birmingham a very warm welcome to all of you mr tang and let me start with you you know president make so much of this trade deficit and it's one of the biggest reasons for imposing these terrorists but is that as simple or even as big as he's making it out to be. well it seems to have a very poor understanding of what deficits are he keeps insisting that he has a deficit with canada when in fact that is not true and in terms of china i

u.s. is in a strong position, china needs with the u.s. is offering. it could play out, it more likely the actual market prices, of flash and ram will more inhe prices the short term. emily: obviously, china has their own ambitions and they could to miss -- they could turn this into an opportunity, the chinese chipmakers. romit: easier said than done. this is why -- they have this massive trade deficit last year, it is because they lack manufacturing capacity, they do not have ip for some important technologies, ian referred to d-ram and nam, they do not even -- wayfarers,s they are paying premium prices for that. so i think for all these reasons, you know, china is in a difficult spot here. emily: the chinese goals, are they unrealistic in the chip industry? ian: that remains to be seen. this will act as an incentive to accelerate them, but it is hard. everybody thinks, how hard can it be, but these are the most complicated pieces of industry equipment in the world, it has been incredibly difficult and in has been tried to do this for a long time. the

also on the show top apple supplier foxconn says the u.s. china dispute is not about trade it's about technology. and an idea that could save the oceans will take a look at a project aimed at ridding the pacific of half its plastic trash within five years . it's time for business on the w i'm here to get us welcome to start where all eyes are at this week in the g. seven summit in quebec a special summit because of donald trump's combative mood he set the tone even before his departure from washington on friday list right now we are not going to live with the deals the way they are european union reaches very unfairly canada very unfairly mexico very unfairly with that being said i think we'll probably very easily make if you. striking deals like that might be easier said than done though the summit has traditionally been about seeking common ground but u.s. tariffs on steel and aluminum have set trump and the u.s. on one side of the trade debate and leaders of the other six nations on the other a situation that has let the media to dump the event

u.s. exports to china were worth one hundred thirty billion dollars while u.s. imports from china exceeded five hundred billion so the difference of the trade deficit was also a record high of three hundred and seventy billion well let's bring in our guests now joining us from london is philip le grain political economist and former special advisor to the director general of the world trade organization and beijing is on the tangan china political analyst who advises the chinese government on economic and development issues and from birmingham in the united kingdom is scott lucas professor of american politics at the university of birmingham a very warm welcome to all of you mr tang and let me start with you you know president make so much of this trade deficit hadn't one of the biggest reasons for imposing these terrorists but is that as simple or even as big as he's making it out to be. well is he seems to have a very poor understanding of what deficits are he keeps insisting that he has a deficit with canada when in fact that is not true and in terms of china

well china has been stealing secrets from the u.s. and other multinational businesses they engage in piracy they require firms to to share technology with joint venture partners and then they throw out the u.s. firms and keep the technology they use state owned enterprises including those controlled by the chinese army to take over targeted industries so all of these are forms of unfair trade which are outlawed under international trade rules and president trump is just enforcing our rights under previously agreed trade agreements and china says it's already retaliated with tear of some thirty four billion dollars of u.s. goods so where does this all leave those trade talks between both sides that seem to be going so well but i think that we have a lot more ground to cover in these trade debates but i think it's important to remember that china has much more to lose in this kind of. a trade tussle than the united states they export much more to us than we export to them. and they're much more dependent on trade overall as a share of t

chamber of commerce in china discussing the looming trade war between the u.s. and china and here of suppressed facts in all of this stay with us. thank. you. properties use collateral and they lend against property and what happens prices are artificially pumped up and jacked up and some people can't afford housing due to the way to fix the housing problem in the u.k. is to take away those fractional reserve banking as property so that prices would come down to the level that is traditionally affordable by the average person in for a. tough . haul moral of kids' lives. cut. loose and limited funding to. those who don't consume don't jell ugandans enjoy the whole joyful deal and the saying i'm done we'll soon enough that equal one to two inches also moved away from the stance me going on in condolence because i don't need a little name to know. to those moodiness listeners this is also the answer to all . and we're back with your good care former president al qaeda chain. we're of commerce in china discussing whether we're on the verge of a global trade war so tr

u.s. and china during these trade talks will be void if the u.s. goes ahead with trade sanctions including tariffs now this is clearly a reference to the u.s. about face that happened just a couple of days before the trade talks started the u.s. had said it was going to push ahead with twenty five twenty five percent of tyrants on as much as fifty billion dollars worth of chinese goods the final list of products affected by these tires we can expect an announcement to be made on the fifteenth of june so now in china so now this is despite the u.s. having said that any tires would be put on hold while these trade talks are ongoing now before the trade talks this round of trade talks started some analysts had said this was perhaps a tactic by the u.s. to strengthen their hand at the negotiating table to show that the gloves are off when it comes to discussing trade issues with china but that strategy has clearly failed with china now and saying in no uncertain terms that it's not going to be pushed around does this mean china and the us are closer to

u.s.. if china eases pressure on the trade front with north korea, it would undermine the u.s. it is critical that china plays the role with north korea. remember, trump himself tweeted -- where would he go hard on hen he could on north korea? so this will be critical in the border trade relationship with u.s.. yvonne: do you think things have changed since the singapore summit, perhaps president trump separating the need to fuel geopolitics with the trade war? enda: there are several different fascinating theories on this. kim is now in the u.s. orbit the orbit.e is in the china china is still an integral part of the north korea-u.s. story, and they still need china to play a role on the sanctions front, which they need to continue to enforce them. there's is a feeling that perhaps strong is constrained -- perhaps trump will be constrained in how hard he can go a north korea. yvonne: thank you, enda curran, bloomberg's chief asian economist correspondent. still ahead, china markets shook investors yesterday with a 4% plunge in shanghai. we look at the pboc is calls for calm. ra

u.s. based companies importing products from japan and china the u.s. branches of japanese manufacturers of cutting tools and auto components have been approved to use special steel imports from japan while there were 50 requests turned down, more are being processed and exemptions will be announced as they are processed. there may be more luck in seeking exemptions for individual high performing items that are hard to replace at the tokyo stock market today investors were quick to snap up a japanese firm that won an exemption which saw it's stock soar today >>> iraq's oil minister says he will try to compromise between those who want to raise production and those who want no change the price of oil has dropped after iran signaled it may be willing to find a deal on a slight raise for output levels. is going back to bed, has not done that. he's still chasing down oil ministers. what can you tell us >> it's about the base level as well this is an important point when we get that announcement probably tomorrow afternoon and they're looking at the oil pric

baron mina china are the u.s. has ordered about 500 do not throw the goods from china in 2017 so you're talking about an additional duty on almost all goods imported into the u.s. market from china. a potential hit for u.s. consumers and the bottom line. donald trump cities doing this because he seeing no signs and china that they are prepared to change what he says are unfair practices around i.t. and technology transfer. saying now is the time to ramp up the pressure on china given the strength of the u.s. economy. tom, what are we likely to hear from beijing as a result of this latest salvo from donald trump? tom: one thing donald trump has been fairly good at is keeping everyone on their toes whether by default or design or accident. from the chinese later this afternoon and get a statement from them there. said all along they will retaliate a respond in kind. it's difficult for them to do beenbecause china, as you discussing, only import about $150 billion of u.s. goods. raising the duties .5% anywhere up to 1

chamber of commerce in china discussing the looming trade war between the u.s. and china and here prospects in all of this stay with us. are survival it looks like the start. repatriation will get the rest seventy. delegates every track record. to the kids in complete saying oh boy tonight. we can. get. home. on the which i did. eventually got to move this because i'm listening to columbia to ensure. the last. few months. i. and we're back with your good care former president of the chamber of commerce in china discussing whether we're on the verge of a global trade war so trump is saying that europe and came about he has been playing to us for years what their own tower is that he's only correcting things that were unfair carry agree with him. of course not i mean there has been a common understanding about open markets the european union is exceptionally open canada has been a very good partner to the united states and the nafta agreement there's a lot of rhetoric go it coming out of there frankly peridot with virtually no economic understanding it's very sad t

u.s. and china ramp-up.e past way for hours and indeed from when the news broke first late friday, we have seen moves lower in commodities both soft and hard, and equities have been under pressure as well. .hat is what we will be seeing hong kong equity futures and mainland chinese equity futures both pointing lower this morning as we are seeing with the strengthening of the yen. it's putting pressure back on risk assets at this point. i suppose the light at the end of the tunnel, if you will, if we play this through was an observation made by a chief economist at deutsche bank overnight. what you may have here in their view as a result of this is a potential for looser monetary policy in china as a result of these tougher, more stringent tariffs from the u.s. they are certainly of the view that if this actually happened and ends up being set in stone, we may have two more additional in china andrr loosening of loan requirements and the housing markets and some of the tier two and tier three cities in china.

u.s. imported goods from china in the amount of $500 billion and china imported u.s. ods in the amount of $130 billion. if you look at those numbers, the possibilities of china at a first glance seem to be limited if you look at tariffs. having said that, china has also mentioned they could take qualitative steps, not just quantitative steps. what they mean is for example, they could start a boycott for u.s. products, they could disrupt supply chains for the high-tech industries and that could turn out to have unintended consequences for u.s. corporations and also for the u.s. economy. fanny: talking about the consequences, the dow plummeted for the sixth consecutive day already. what are the sentiments on the ground? what are you hearing? jens: so far, representatives from the truck administrative calling it a trade dispute, not a trade war. there is still hope on wall street that all the verbal threats are actually part of it negotiating strategy and at the end we will not see those tariffs being implemented. but that is guessing at this time. if the dispute should e

set that china and u.s. should have the results are intended relationship is not a zero sum relationship and both sides who have success together what will the u.s. do specifically towards that and thank you. so there are there are many ways that we'll achieve that among the most important of them as we continue sound history teacher dialogue between our two nations so that where there are places where we disagree. we ironed out those differences and that we express our interest very clearly and work towards the peaceful resolution of those. of those conflicts make make very clear there are many things today where china the united states work very closely together that improve the lives of the citizens of each of our two countries i mentioned a couple of them in my opening remarks we'll continue to work alongside of those and each of those there are many many places where our two nations are far better off working together in concert and aligned as opposed to working at interests that diverge and i am commit

u.s. exports to china were worth one hundred thirty billion dollars while u.s. imports from china exceeded five hundred billion so the difference of the trade deficit was also a record high of three hundred and seventy billion well let's bring in our guests now joining us from london is philip le grain political economist and former special advisor to the director general of the world trade organization and beijing is on the tangan china political analyst who advises the chinese government on economic and development issues and from birmingham in the united kingdom is scott lucas professor of american politics at the university of birmingham a very warm welcome to all of you mr tang and let me start with you you know president makes so much of this trade deficit had its one of the biggest reasons for imposing these terrorists but is that as simple or even as big as he's making it out to be. well it seems to have a very poor understanding of what deficits are he keeps insisting that he has a deficit with counted when in fact that is not true and in terms of china

u.s. tariffs target industries tied to china has made in china twenty twenty five a blueprint to dominate high technology industries they're also intended to punish the chinese for what the u.s. calls intellectual property theft and unfair trade practices one trade expert says a u.s. trade battle with china will impact global markets it creates instability. reduces particularly inverse uncertainty for long term investors private business capital expenses and these types of things trump's summit in singapore may have strength. then to his determination to act for yes' the us look to china to help restrain north korea but convinced he has built a relationship with north korean leader kim jong il and trump perhaps feels he's in a stronger position to be tougher on trade with china the trade war seems to have only just begun trump has threatened to slap taxes on more goods if china goes ahead with the tariffs chinese state media meanwhile says china has taken note of the statement and reserves its right to take corresponding measures targets very al-jazeera beijing while on a tongan is a polit

u.s. and china.usiness perspective would like to see countries around the world work together to grow the economy rather than contribute into a slowdown. >> you can see more of my interview later in daybreak asia. that is it 9:40 sydney time. 7:40 if you are watching in new york. >> great conversation. daybreak asia is up next. happy friday. >> happy friday. not just trade tensions but also tensions in opec in vienna. oil minister walking out of this meeting. it looks like the rest of the opec members say that they could have a preliminary agreement. we are honing in on what that number is going to be when it comes to how much they can raise output. the market currently is pricing in around an increase of 400,000 barrels. we will see if we see anything higher than that. in just a few minutes we are also going to be talking about where we are headed is in terms of equity. we will look at opportunities around the world that coming up in just a few minutes. is it for daybreak australia. daybreak asia is

china has tripled the u.s. periods. also making the unicorns at a faster pace and united states. one of china's largest angel investors has played a part of that. they have funded the other 100 billion dollar companies since 2010. hannah told us what she looks for in her investments. >> we have about ultimate points since we started seven years ago. they are across many different sectors. in the early stage it is not as much about the idea as the person. ideas can change. we're looking for people who we think can create billion dollar companies. that has always been our method. that has not changed. we have of sectors, been disrupted in the past year. they came out with many programs. basically, instead of downloading an app, you can imagine people are using a mini program. that creates a whole new ecosystem. whether it is e-commerce or gaming or sharing, there is a lot of application. consumer trends continue to be interesting. this is like a new concept grocery store. that is completely disrupting retail. it is all abo

china. a spokesperson says if the u.s. lls out protectionist measures that harm china's interest, then we will respond immediately to safeguard our rights and interests. joining us from hong kong is our chief economic asia correspondent, thank you for staying up late. what kind of response can we expect from china? >> good morning. as they china has been consistent from the beginning, they said they are willing to they have alsoar, said it they will retaliate in kind. we will see how they respond. previously, they want they would go after agricultural imports from the u.s. and they would target u.s. investment in china. here.are huge companies so they could respond with tariff barriers and nontariff barriers. i think there will be a prompt response at a beijing. -- out of beijing. alix: the qualcomm bid for nxp was just approved yesterday by chinese regulars, so how does that make sense when the tariffs are coming and is there risk in that? >> that is a for observation. ztequalcomm transaction, is separate, this all became

now at the people most likely to feel the pinch of the terrorists first while china is aiming at six hundred fifty nine u.s. exports but with a focus on grown produce american soybean farmers send sixty percent of their crops to china and are likely to be the first to suffer but chinese pig farmers will also be hurt by the tariff on soybean as they use it for feed there are other sources but it's likely the chinese pork consumers which number the biggest in the world will be affected trumps tariffs target mainly chinese industry so far it seems that will not have much of an effect on the price of consumer goods in the u.s. at least not right away out of there was florence levy joins us live now from the chinese capital beijing front so just talk us through beijing's reaction to these trade tariffs imposed by donald trump. well i think the chinese of fear is they are absolutely furious at what's hit them and they are hitting back they're hitting back hard we heard the chinese commerce ministry issued a statement shortly after trump made his announcement and they said they would respond with taxation measure

u.s. stocks. china and europe from its retaliation to president trump's threats. >> tech shares were hardest hit but the nasdaq down more than 2%. the u.s. familiar also weaker. >> officials are downplaying trends to limit chinese tech on national security grounds. >> but some american icons are feeling the pain. harley david son and jack daniels among the losers as trailed turmoil bites. >> hello from sydnie, just past 58 a.m., i'm haidi lun. >> and just past 6:00 p.m. here in new york, i'm thrath lean hays. a lot of the action in washington where trump's national trailed director peter navarro tried to backpedal on stories over the weekend that the trade secretary is getting ready to approaches another way to curb technology investments by singleling occupants china. this as chinese and european officials have been meeting in beijing. haidi: that's right. very much another session dominated by trailed. the french ambassador saying he hopes the u.s. soon sees tariffs are bad for its own economy but tru

u.s. companies by a lot of components from china. we are going to see an impact chineseeven though policies and unfair trade practices and forcing technology transfers and localization of data are harming u.s. technology companies. they have been forced to deal with restrictions for years. to restrictions continue grow rather than frank. so there is a problem for technology companies as china once to indigenous a lot of manufacturing in china. however, tariffs are not going to help solve the problem. does it mean for china-based companies given what is on their list and our list? we will have to see what the next moves are, but it creates a great deal of uncertainty. for foreign companies invest in china on how exports will be affected and whether they will be hit a retaliation. for chinese owned companies, and a lot of uncertainty heard will they be able to do acquisitions in the united states? will further products be hit by additional tariffs? we have had in this large trade relationship a fair bit of predict ability. a lot of it n

u.s. goods being imported to china.thing they could do with unexpected for a long time, is that they could do something similar to what they have done otte department store in china, administrative measures pinpointing some u.s. companies operating in china, not only on the retail level, but they can also doin do it on an export level. some of the goods assembled and exported from china, although not all of them are manufactured in china, if this happens, then we really have a full-fledged trade war. haidi: thank you so much, iris pang, ing bank economist of greater china there. we will continue to discuss the threat of a trade war between china and the u.s.. bloomberg users, you can take a look at a chart on g tv , in the meantime, and catch on key analysis, saving the struts for future reference. this is bloomberg. ♪ did you say saving the ♪ is "bloomberg markets: asia," i am haidi than in sydney. let us look at the business headlines. and $.70 a share in apn'sor this company, and board unanimously recommended off

u.s. has more investment in china, so china has more opportunity to squeeze u.s. companies and china has much greater scope to use its policy. as not dive much into what it could do against u.s. companies like starbucks, apple and gm. of the loss of andtility do think that is not being thought of my investors in some multinationals? sometimes a tendency to equate damage to operations to damage to the economy. there is plenty examples of china mounting powerful campaigns. if you look at how china as part of the attempt to counter north korea in the chinese works that, you saw inside sales in china. thatstarted complaining they were spending too much and not buying enough low-cost chinese parts. you can go through the list and because of the nature of china's economy, there are a lot of toers that china could imply .ake it hard for starbucks the options are pretty broad. luckily, brad brings it. you can read his full blogs on what would happen to china if they started selling off their treasury portfolio. from new york, this is bloomberg. >> companies such as harley

chamber of commerce in china discussing the looming trade war between the u.s. and china and here ups prospects in all of this stay with us. i think it's trying to imagine that i say things just to be controversial and you would not withstand the level of attacks of police harassment of detention of having my passport take ten of social services being called on my children of my family being on threat of coming to jihad this plot to behead me in nov twenty seventh i don't believe you would withstand those levels of people trying to trying to silence you if you didn't believe what you senator. this is rather trendy over the past few years to talk about the new world order fair enough the recent g seven in canada in trying to engage north korea for just two weeks. pax americana is undergoing a significant transformation. and we're back with your good care former president of the chamber of commerce in china discussing whether we're on the verge of a global trade war so trump is saying that europe and canada has been playing the u.s. for years with their own tower e

china. it isd: people forget u.s. companies trading in china. >> absolutely right. has been the recipient of some rhetoric, some anti-american talk in the past. again and thepen food chain could be affected in asia and the u.s., so it is not just tariffs where there is $500 billion on one side and $150 billion on the other side. rishaad: let's look at what they can do elsewhere. it's also about the supply chain in asia as a whole. it is not just china-u.s.. >> absolutely true. when we look at the apple food chain, for example. if that became a target, there are suppliers in taiwan and korea that could potentially be foldable in that space. let's hope this gets negotiated out to which was the original intention of these threats. the tariffs that will be implemented on july 6 are around $50 billion, actually $34 billion, so the threats of 200 billion dollars may or may not materialize. it is not only the size of tariffs, but how long they are in place that impacts the trade cycle, commodity cycle, and growth path of the regional and global economy. haidi: i want to thr

meanwhile the two opposing parties are stoking the fire china accuses u.s. president donald trump of blackmail and says it will again retaliate for the latest set of terrorist threatened by washington country china's retaliation of the first round of u.s. tariffs trump is now targeting an additional two hundred billion dollars worth of chinese imports with a ten percent levy that brings the total amount of tariffs trump a second slap on chinese imports up to four hundred fifty billion u.s. dollars. shoppers in china might not be interested in every twist and turn of the trade dispute between their country and the united states but the tit for tat spot could soon become apparent in their grocery bills these aren't jets imported from the u.s. are among hundreds of goods beijing has backed attacks in response to a fresh set of terrorist threats from washington. to move makes good on china's pledge to retaliate up to the united states imposed an initial set of tariffs on fifty billion dollars worth of chinese goods. but if you needed further proof that china is n

u.s. and china -- tradee a treat negotiations. the u.s. demands for changes it wants china to make the negotiations have really barely got off the starting block. i think this was always in the works. there were technical delays for one reason or another including north korea. i think trump has wanted to go down this road for a long time -- he has opportunity. now we will see how it plays out. tom: what do you think of the chances of china and the european union and canada, others, coordinating at least to some degree to push back against the u.s. on trade? edward: i think you are seeing some degree of coordination. what you are seeing is each country use an exact mirror retaliation. you mentioned the $34 billion on july 16 and another $16 billion for china. at ithmirror image of what the u.s. will do to china. the canadians, mexicans, europeans have all done the same thing, retaliating to the point of u.s. tariffs but nothing further. all of the countries are trying to target what they see as political vulnerability in the united states,

china has vowed it to retaliate against u.s. mpanies after president donald trump threatened to place tariffs on a further $200 billion worth of imports. the nation will take strong if the uniteds states issues a new tariff list. how is china reacting to the latest tariffs from trump? chineseu say, the countered pretty quickly and said they would take strong countermeasures. we don't know the details of the exact measures. what we know is that they cannot match the u.s. tariff for tariff. they cannot go toe to toe because they don't important enough. $150important about billion every year. the u.s. imports about $500 billion worth of chinese goods. what china may do is take some of these unofficial measures. we have been hearing this morning that some of their members, some u.s. corporate operating in china are already feeling the impact at the extra checks in terms of customs, actual licensing delays, anything that stops the business growing substantially here in china. those measures, china has taken apart from other countries.

u.s. needs china's help in enforcing u.n. sanctions on north korea the trump administration believes it has these tougher sanctions that played a part in forcing north korea to the negotiation table but some analysts also say because the talks between north korea and the u.s. were a success then trump now has a little bit more leeway to be tougher on china with regards to trade because china is not going to want to derail the process for denuclearization on the korean peninsula because that is consistent with china's own security interests for joining us now from london to talk more about this is andrew kenning him chief global economist at capital economics thanks very much for being with us so first off what are the implications then of what is looking right now like a major trade rift between the u.s. and canada. well the implications for canada itself are potentially fairly large in canada exports a lot of steel to the united states. and it's one of the key members of nafta and if the united states walked away from nafta

a trade route between the world's two biggest economies china and the u.s. has escalated president donald trump says he will impose twenty five percent tariffs on fifty billion dollars worth of chinese imports then u.s. was being taken advantage of beijing promised to retaliate quickly with its own tariff of twenty five percent on u.s. goods also worth fifty billion stars in july alan fischer reports from the white house. u.s. president donald trump has been hammering china on treat for months and a morning on the white house north lawn where he held the surprise news conference he confirmed he was going to act we need protection everybody take care of the european union made one hundred fifty one billion dollars you know where she would be if you look at the total you got china if you look at your job or you look at somebody and we help these countries militarily and over the years but what point does it stop you know the u.s. will impose tariffs an additional tax on goods imported from china the industries to be impacted agriculture or to undertake sector.

u.s. and china, try to find other markets. of. e volumes crude and gas these days and it will only increase in the next few orders. those have to find a new market. the u.s. will probably be able to do that because they're crude is lighter and sweeter and there is demand for that. china loses out on that. growing marketst by volume. they have to find other markets for their own resources. the real risk is consumption slowing down. rishaad: think you so much. let's move from oil to the soft commodities and look at some of the farm commodities on china's hit list. china is the world's biggest consumer of soybeans. cb: we have already seen a slight shift. they are buying big volumes of brazilian soybeans and shunning the u.s. in the last couple of months. we expect to see premiums rise for the next few months. we are anticipating china to --tinue buying from his oh from brazil, a lot lighter than they normally would. soybean tariff had been flagged in late march. they have been able to prepare themselves a little bit. the big question

u.s. you will get intel and nvidia buying up lots of semiconductor stocks china is pumping billions into itswn semiconductor industry that means smaller u.s. chip stocks we think that will consolidate. >> what does that mean in terms of companies that will be winners in the chinese market. some companies have come to market with their own chips. where do you see the winners will it be brand-new companies making semiconductors or some big existing firms in china? >> we know china will invest loads of money in the chip market that means that around the world the chip market is still fragmented you get makers of cp ushgs, -- cpus the mid-sized chipmakers in the u.s. will consolidate. that's the safe haven. >> overall, cyrus, and why we asked you to come on before all this stuff broke, you have big picture stuff. you're supposed to buy low, sell high if the markets continued to slide on this talk, where do you see the opportunities? >> the biggest opportunity that we've been seeing for a long time is ibm. >> ibm >> if you combine a strong company with good valuation, ibm is where you want to be.

taylor: if china has a reaction ofbuying u.s. action does that make for you in china? >> it is important we leave energy out of a trade war. for us, it's very important that people get access to the cleanest energy. and the fossil fuel arena. in, whatit gets opportunity does that create? >> my advice would be to leave it out to make us more competitive in areas and make u.s. less competitive. but we think the demand in the world needs everybody to be part of the energy mix. the largest energy supplier today and australia is also quite large and growing. we have announce we're going to grow our lng business from 77 million to 100 million. so there is a big growth. we are also investing in the u.s. to have additional energy out of the u.s. alix: they're in aggressive growth plans. the i.a. report said the u.s. could become the biggest supplier. if that happens, do you have to produce more, do you have to discount your lng, where you have to get more come price -- more price competitive than asia? >> what is happening and if you look