China-US trade war

Political commentator Jin Jian Guo believes that the semiconductor Great Leap Forward pushed by the Chinese authorities could have the same devastating effects as the Great Leap Forward of the past. In an industry that is globally interconnected, persisting with the impossible endeavour of becoming fully self-reliant would only result in further instances of failing to learn from history.

With the latest virtual call between Chinese Vice-Premier Liu He and US Treasury Secretary Janet Yellen, observers are anticipating that the US will lift the Trump-era punitive tariffs on China and de-escalate the four-year-long China-US trade war that has hurt both economies. Zaobao correspondent Yang Danxu looks at how the situation might develop and how Biden might play his cards.

Three of China’s major airlines have announced plans to purchase about 300 aircrafts from Europe’s Airbus, much to the chagrin of the US’s Boeing. Zaobao correspondent Yu Zeyuan discusses the reasons behind the move and what this might portend.

Calls for de-dollarisation have increased since the financial sanctions of the Ukraine war and the very real threat of the US dollar being weaponised. In this context, academic Pei Sai Fan explains why conditions are ripe for China and Asia to offer innovative alternatives, such as developing regional digital currency cooperation in the payment and settlement of regional trade and investment, and expediting the development of new cross-border digital payment infrastructure in Asia known as multi-CBDC platform projects.

While virtual meetings between Xi Jinping and Joe Biden have usually followed in-person meetings between the countries’ top diplomats, there is no sign of a virtual summit taking place any time soon after China's Yang Jiechi and US national security adviser Jake Sullivan met in Luxembourg. For the US, internal disagreement over trade tariff issues could be causing the pause. And in the case of China, it has already let go of any false hope for better ties.

With inflation reaching historic highs, the Biden administration is facing a challenging road ahead of the midterm elections in November. The lifting of some tariffs on China could ease inflation in the US and appease voters, bringing an end to the China-US trade war. However, views in the White House are mixed. Zaobao correspondent Edwin Ong speaks with academics to find out more.

Economics professor Zhu Ying observes that since US-China relations reached their high point after former President Trump's visit to Beijing in 2017, China-US relations have seen three splits, each driven by the trade war, the pandemic and the war in Ukraine respectively. Amid tense relations and set identities that have been formed, one can only hope that the US and China do not stumble into a hot war.

NUS academic Lu Xi notes that following the Russia-Ukraine war, the world will possibly be divided by political ethics, specifically between the idealists and realists who respectively believe in the rule of law and the law of the jungle. In this hypothetical scenario, will small states be able to stay neutral without taking sides? How will they navigate between the big powers and maintain their own national interests?

Chinese concept stocks plunged after the US Securities and Exchange Commissions’ recent announcement that another five US-listed Chinese companies might be delisted for non-compliance with US regulations. Although there was a rebound after Vice-Premier Liu He’s reassurance that China will implement policies to stabilise the stock market and support overseas listings, Chinese companies looking to raise capital abroad will still have to deal with two sets of inherently contradictory regulations from the US and China.