The trade row between China and the United States entered its second week on a more positive note as the two countries engaged in talks to seek a solution. Kim Jong-un, leader of the Democratic People’s Republic of Korea, paid an unofficial visit to Beijing prior to his meeting with US President Donald Trump. Guo Shuqing, head of the China Banking and Insurance Regulatory Commission, was named Party secretary of the central bank, which was seen as another move to curb systemic financial risks. China also launched the world’s newest crude oil futures contract, while scientists said that the country’s space laboratory, Tiangong I, was to crash to Earth over the weekend.
China and the US soften tones, but worries remain
Concern over a full-fledge trade war eased a little this week, as China and the US talked on solutions to their trade problems, which led to huge rebound on Wall Street and Asian stock markets. Many mainstream media commented that the talks — and China’s restrained response to US tariffs — indicated there would be no trade war, and that US President Donald Trump’s extensive tariff plan was meant only to push China into talks. CNBC quoted Larry Lindsey, an adviser to former president George W. Bush, saying that Trump’s trade tactics may make China more willing to negotiate.
However, risks from the China-US trade crossfire are still looming. Some mainstream media said the biggest issue dividing the two countries is not the tariffs but industrial policies. Bloomberg wrote that US tariffs targeted Made in China 2025, the Chinese government’s strategy to make the nation a global leader in high-tech industries.
Some media even suggested that China and the US are waging a “technology cold war”, with Trump’s block on Broadcom’s takeover of Qualcomm used as supporting evidence. The New York Times commented that the intractable standoff over China’s core industrial policy could prolong a trade dispute that has already shaken markets.
Mainstream media mostly held the view that there are better ways to resolve trade problems than tariffs, with The Economist putting that “America’s trade strategy is undermining the rules-based trade order and could start a series of tit-for-tat moves”. The two countries were urged to keep cool and keep talking, while Bloomberg suggested using the Comprehensive Economic Dialogue as a negotiating channel.
Kim Jong-un’s visit to Beijing reaffirmed China’s central role in Peninsula affairs
This week saw DPRK leader Kim Jong-un make an unofficial visit to China, during which he met with President Xi Jinping for talks at the Great Hall of the People in Beijing. Chinese media hailed this visit as a positive development on the Korean Peninsula issue, emphasizing that the “traditional friendship” between China and the DPRK is alive and well. According to Xinhua News Agency, Kim told Xi that “the issue of denuclearization of the Korean Peninsula can be resolved if the Republic of Korea and the US respond to our efforts with goodwill, create an atmosphere of peace and stability while taking progressive and synchronous measures for the realization of peace”.
The meeting led to heated discussion among the global media, especially the US media. Kim’s visit was widely considered a testament to China’s strong influence over the DPRK, and it was believed the meeting between Xi and Kim would benefit the two countries. For China, not only was its central role in managing the DPRK nuclear issue reasserted by this meeting, it also gained more leverage in bilateral trade with the US. National Interest magazine said the meeting showed Trump that “the US must still go through China if it wants a final deal that will really stick”.
For the DPRK, its position was strengthened ahead of Kim’s meeting with Trump. Bloomberg reported that “the shift ensures that China’s interests are protected during Kim’s planned summit with Trump, and also gives the DPRK an insurance policy if talks collapse”.
In terms of how Kim’s Beijing visit will affect future settlement of the DPRK issue, opinion was divided. Some media said China’s participation in the talks would help stabilize the Korean Peninsula, while others remained skeptical regarding Kim’s commitment to denuclearization. As far as the US media was concerned, the Beijing-Pyongyang summit may have weakened Washington’s initiative in the upcoming Trump-Kim summit and undercut its maximum pressure campaign against the DPRK. Brookings said that “the visit gave the impression of a White House that was caught off guard rather than leading international efforts to confront the DPRK and push it toward denuclearization”.
It’s also worth noting that media organizations in the ROK and Japan have been vocal in interpreting the implications of Kim’s China trip. While the Blue House — the seat of power in Seoul — recognized China’s contribution to negotiations, some ROK media voiced concern that China might reconsider sanctions on the DPRK after Kim’s visit. The Korea Herald said that “if China alleviates sanctions and pressure, it will be harder to reach the goal of denuclearization”. Japanese media, on the other hand, urged Tokyo to avoid being sidelined in this rapidly evolving situation. Kyodo News reported that the meeting “increased concern in Tokyo that Japan is lagging behind other major countries in shaping the rapid unfolding of events involving North Korea since the start of the year”.
New central bank Party secretary to help push financial overhaul
Guo Shuqing, head of China’s new regulator for the banking and insurance sectors, has been appointed Party secretary and vice-governor of the People’s Bank of China, less than a week after Yi Gang was named governor of the central bank. This unusual move of splitting the roles of Party chief and governor made a splash in the Western media. In separating them, China is essentially acting like those large US corporations that separate the positions of chairman and chief executive.
Mainstream media including The New York Times and The Wall Street Journal said China’s rapid shake-up in top financial regulatory jobs indicates that the country’s leaders are determined to act on weaknesses in the financial system and could bolster momentum for financial overhauls. On one hand, Guo, who is seen as equally avid about financial reform as Yi but with much better political connections, will supplement the former economics professor’s technocratic expertise. On the other hand, in addition to Guo’s strong political and financial background, his role as the nation’s top banking and insurance regulator will enable him to effectively coordinate policy between the regulator and the central bank.
China launches oil futures to reshape the global market
China launched its long-awaited renminbi-denominated crude oil futures contract on March 26, the first Chinese futures product that can be traded by overseas entities with no presence in China. The move represents Beijing’s latest step toward financial opening-up and a global push of its currency.
Global media offered analysis on why China has launched oil futures as well as its potential influence. First, despite the fact China is the world’s biggest oil importer, the main oil benchmarks are determined by Brent in Europe and West Texas Intermediate in the US. Thus, to establish a RMB-denominated benchmark in Asia is a fairly natural progression that can fill the gap in Asia-Pacific markets. Second, the introduction of the crude oil futures contract is being viewed as a significant move by Beijing to exercise its pricing power. By breaking into this exclusive club, China hopes to create a standard for oil pricing as a rival to Brent and WTI — one that reflects its own supply and demand. Third, this move will help the Chinese government in its efforts to internationalize its currency. And last, if China’s new oil futures contract works well, it can protect Chinese oil companies against volatility. An onshore contract can help them lock in the future price of oil in RMB and manage price risks more effectively.
However, as the Intercontinental Exchange’s Brent contract and the New York Mercantile Exchange’s WTI dominate 98 percent of international oil trading volumes, it will take some time for China to match them in terms of scale and influence.
Scientists say no need to worry about Tiangong I re-entry
After predictions by space agencies that Tiangong I may re-enter the atmosphere between March 30 and April 4, the Chinese space lab again captivated global media this week.
Some media voiced doubts over the re-entry, citing uncertainties about Tiangong I’s landing time, location and related information such as its design. It was reported that “in 2016 an apparent malfunction ended communications with the spacecraft”, making it impossible to control its re-entry and thus becoming “a blot on China’s ambitious space program”. However, the Liaowang Institute, a think tank affiliated to Xinhua News Agency, said such suspicions are groundless, adding that the Tiangong I has remained in excellent condition, completed its missions and exceeded expectation.
In fact, most mainstream media outlets agreed that the re-entry posed minimal risk to human life, whether it was uncontrolled or not. The New York Times and Los Angeles Times quoted experts and stated that the chances of Tiangong I causing serious injury would be “less than one in a trillion”. Researchers said space objects of similar size drop from the sky regularly, and that much larger spacecraft had fallen without hurting anyone.
Furthermore, some media highlighted China’s progress toward its space dreams marked by Tiangong I, which was launched in 2011 as the country’s first attempt at an orbiting space lab. Quartz reviewed the national pride evoked by the launch after the US barred cooperation between NASA and China, and illustrated that Tiangong I represented a major step toward a permanent space station and “China’s determination to catch up to or even outpace global space powers”, adding that China has now become “one of the world’s leading space explorers”.
The trade row between China and the United States entered its second week on a more positive note as the two countries engaged in talks to seek a solution. Kim Jong-un, leader of the Democratic People’s Republic of Korea, paid an unofficial visit to Beijing prior to his meeting with US President Donald Trump. Guo Shuqing, head of the China Banking and Insurance Regulatory Commission, was named Party secretary of the central bank, which was seen as another move to curb systemic financial risks. China also launched the world’s newest crude oil futures contract, while scientists said that the country’s space laboratory, Tiangong I, was to crash to Earth over the weekend.
China and the US soften tones, but worries remain
Concern over a full-fledge trade war eased a little this week, as China and the US talked on solutions to their trade problems, which led to huge rebound on Wall Street and Asian stock markets. Many mainstream media commented that the talks — and China’s restrained response to US tariffs — indicated there would be no trade war, and that US President Donald Trump’s extensive tariff plan was meant only to push China into talks. CNBC quoted Larry Lindsey, an adviser to former president George W. Bush, saying that Trump’s trade tactics may make China more willing to negotiate.
However, risks from the China-US trade crossfire are still looming. Some mainstream media said the biggest issue dividing the two countries is not the tariffs but industrial policies. Bloomberg wrote that US tariffs targeted Made in China 2025, the Chinese government’s strategy to make the nation a global leader in high-tech industries.
Some media even suggested that China and the US are waging a “technology cold war”, with Trump’s block on Broadcom’s takeover of Qualcomm used as supporting evidence. The New York Times commented that the intractable standoff over China’s core industrial policy could prolong a trade dispute that has already shaken markets.
Mainstream media mostly held the view that there are better ways to resolve trade problems than tariffs, with The Economist putting that “America’s trade strategy is undermining the rules-based trade order and could start a series of tit-for-tat moves”. The two countries were urged to keep cool and keep talking, while Bloomberg suggested using the Comprehensive Economic Dialogue as a negotiating channel.
Kim Jong-un’s visit to Beijing reaffirmed China’s central role in Peninsula affairs
This week saw DPRK leader Kim Jong-un make an unofficial visit to China, during which he met with President Xi Jinping for talks at the Great Hall of the People in Beijing. Chinese media hailed this visit as a positive development on the Korean Peninsula issue, emphasizing that the “traditional friendship” between China and the DPRK is alive and well. According to Xinhua News Agency, Kim told Xi that “the issue of denuclearization of the Korean Peninsula can be resolved if the Republic of Korea and the US respond to our efforts with goodwill, create an atmosphere of peace and stability while taking progressive and synchronous measures for the realization of peace”.
The meeting led to heated discussion among the global media, especially the US media. Kim’s visit was widely considered a testament to China’s strong influence over the DPRK, and it was believed the meeting between Xi and Kim would benefit the two countries. For China, not only was its central role in managing the DPRK nuclear issue reasserted by this meeting, it also gained more leverage in bilateral trade with the US. National Interest magazine said the meeting showed Trump that “the US must still go through China if it wants a final deal that will really stick”.
For the DPRK, its position was strengthened ahead of Kim’s meeting with Trump. Bloomberg reported that “the shift ensures that China’s interests are protected during Kim’s planned summit with Trump, and also gives the DPRK an insurance policy if talks collapse”.
In terms of how Kim’s Beijing visit will affect future settlement of the DPRK issue, opinion was divided. Some media said China’s participation in the talks would help stabilize the Korean Peninsula, while others remained skeptical regarding Kim’s commitment to denuclearization. As far as the US media was concerned, the Beijing-Pyongyang summit may have weakened Washington’s initiative in the upcoming Trump-Kim summit and undercut its maximum pressure campaign against the DPRK. Brookings said that “the visit gave the impression of a White House that was caught off guard rather than leading international efforts to confront the DPRK and push it toward denuclearization”.
It’s also worth noting that media organizations in the ROK and Japan have been vocal in interpreting the implications of Kim’s China trip. While the Blue House — the seat of power in Seoul — recognized China’s contribution to negotiations, some ROK media voiced concern that China might reconsider sanctions on the DPRK after Kim’s visit. The Korea Herald said that “if China alleviates sanctions and pressure, it will be harder to reach the goal of denuclearization”. Japanese media, on the other hand, urged Tokyo to avoid being sidelined in this rapidly evolving situation. Kyodo News reported that the meeting “increased concern in Tokyo that Japan is lagging behind other major countries in shaping the rapid unfolding of events involving North Korea since the start of the year”.
New central bank Party secretary to help push financial overhaul
Guo Shuqing, head of China’s new regulator for the banking and insurance sectors, has been appointed Party secretary and vice-governor of the People’s Bank of China, less than a week after Yi Gang was named governor of the central bank. This unusual move of splitting the roles of Party chief and governor made a splash in the Western media. In separating them, China is essentially acting like those large US corporations that separate the positions of chairman and chief executive.
Mainstream media including The New York Times and The Wall Street Journal said China’s rapid shake-up in top financial regulatory jobs indicates that the country’s leaders are determined to act on weaknesses in the financial system and could bolster momentum for financial overhauls. On one hand, Guo, who is seen as equally avid about financial reform as Yi but with much better political connections, will supplement the former economics professor’s technocratic expertise. On the other hand, in addition to Guo’s strong political and financial background, his role as the nation’s top banking and insurance regulator will enable him to effectively coordinate policy between the regulator and the central bank.
China launches oil futures to reshape the global market
China launched its long-awaited renminbi-denominated crude oil futures contract on March 26, the first Chinese futures product that can be traded by overseas entities with no presence in China. The move represents Beijing’s latest step toward financial opening-up and a global push of its currency.
Global media offered analysis on why China has launched oil futures as well as its potential influence. First, despite the fact China is the world’s biggest oil importer, the main oil benchmarks are determined by Brent in Europe and West Texas Intermediate in the US. Thus, to establish a RMB-denominated benchmark in Asia is a fairly natural progression that can fill the gap in Asia-Pacific markets. Second, the introduction of the crude oil futures contract is being viewed as a significant move by Beijing to exercise its pricing power. By breaking into this exclusive club, China hopes to create a standard for oil pricing as a rival to Brent and WTI — one that reflects its own supply and demand. Third, this move will help the Chinese government in its efforts to internationalize its currency. And last, if China’s new oil futures contract works well, it can protect Chinese oil companies against volatility. An onshore contract can help them lock in the future price of oil in RMB and manage price risks more effectively.
However, as the Intercontinental Exchange’s Brent contract and the New York Mercantile Exchange’s WTI dominate 98 percent of international oil trading volumes, it will take some time for China to match them in terms of scale and influence.
Scientists say no need to worry about Tiangong I re-entry
After predictions by space agencies that Tiangong I may re-enter the atmosphere between March 30 and April 4, the Chinese space lab again captivated global media this week.
Some media voiced doubts over the re-entry, citing uncertainties about Tiangong I’s landing time, location and related information such as its design. It was reported that “in 2016 an apparent malfunction ended communications with the spacecraft”, making it impossible to control its re-entry and thus becoming “a blot on China’s ambitious space program”. However, the Liaowang Institute, a think tank affiliated to Xinhua News Agency, said such suspicions are groundless, adding that the Tiangong I has remained in excellent condition, completed its missions and exceeded expectation.
In fact, most mainstream media outlets agreed that the re-entry posed minimal risk to human life, whether it was uncontrolled or not. The New York Times and Los Angeles Times quoted experts and stated that the chances of Tiangong I causing serious injury would be “less than one in a trillion”. Researchers said space objects of similar size drop from the sky regularly, and that much larger spacecraft had fallen without hurting anyone.
Furthermore, some media highlighted China’s progress toward its space dreams marked by Tiangong I, which was launched in 2011 as the country’s first attempt at an orbiting space lab. Quartz reviewed the national pride evoked by the launch after the US barred cooperation between NASA and China, and illustrated that Tiangong I represented a major step toward a permanent space station and “China’s determination to catch up to or even outpace global space powers”, adding that China has now become “one of the world’s leading space explorers”.
