Tag: Trade War

New Louis Vuitton Handbags to Boast ‘Made in USA’

LVMH is following through on a pledge to create more U.S. manufacturing jobs, part of a plan by Bernard Arnault, chairman of the French luxury conglomerate, to hedge against trade tensions and build on the rapport he’s established with President Donald Trump.

Louis Vuitton Petite Boite Chapeau Toile Monogram handbags at the company workshop in Beaulieu-sur-Layon, France. Photographer: Balint Porneczi/Bloomberg

Trump and his daughter Ivanka are set to open a new Louis Vuitton factory with a ribbon-cutting ceremony in Texas on Thursday alongside Arnault, who is LVMH’s leading shareholder, and Michael Burke, the chief executive officer of its best-known brand.

In 2017, Arnault was one of the first CEOs to visit the president following his election, making the trip to Trump Tower along with his son Alexandre at a time when most fashion executives were paralyzed over how to approach the new commander-in-chief. Fashion was caught between threats of tariffs on foreign suppliers and concerns that consumers opposing Trump would boycott brands that supported the new administration.

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Trump May Be Proven Right on China Tariffs

Trump may be proven right on China tariffs: Chang
China Foto Press | Getty Images. Gordon Chang, author of “The Coming Collapse of China,” says tariffs on Chinese exports to the U.S. might have to be on the table.

If Donald Trump were to become president, he would not be able to start a trade war with China , said Gordon Chang, author of “The Coming Collapse of China.” That’s because the Chinese have already been targeting American businesses, he said Friday. Continue reading “Trump May Be Proven Right on China Tariffs”

The European Commission found that Beijing illegally subsidizes Chinese steel producers.

china dumping steelBEIJING (Reuters) – The European Union will not be drawn into a trade war with China, the EU’s ambassador to the country said on Wednesday, a day after trade sources said the European Commission found that Beijing illegally subsidizes Chinese steel producers.

The Commission is investigating 37 dumping and subsidy cases, 21 of them involving China, and Tuesday’s preliminary finding asked EU members to back punitive tariffs against Chinese steel firms, a move that angered Beijing.

But EU Ambassador to China Markus Ederer said he was puzzled by and “flatly rejects” reports of atrade war between the two economies which together comprise the world’s largest trade relationship.

“I don’t want this to become a self-fulfilling prophecy. First of all, it takes two for a war, and I can declare here that the EU is not available for a trade war with China,” Ederer told a news briefing.

China’s Commerce Ministry spokesman Shen Danyang on Wednesday called the Commission’s investigation into steel subsidies “unreasonable”.

“Such a conclusion based on unreasonable investigations will seriously hurt Chinese companies’ legal rights and interests,” Shen said at a separate news briefing.

European anti-dumping and anti-subsidy duties affect less than 1 percent of Chinese exports to Europe, Ederer said.

“China, as well, has investigations, as you know, into European exports to China. We have no issue with that as long as it is under WTO rules,” he said, adding that observers should not “over dramatize” the issue.

The Commission’s ongoing investigations include a study of the alleged dumping of 21 billion euros of solar panels and components by Chinese producers. A preliminary ruling on that case, the Commission’s largest investigation to date, is due in the first half of 2013.

The European Union is China’s biggest trading partner while for the EU, China is second only to the United States.

(Reporting by Michael Martina and Aileen Wang; Editing by Jeremy Laurence)

China solar giant faces glare of US trade war

The low cost of labour, coupled with the massive scale of production at its 14,000-person plant, have enabled China's Suntech to become the global industry leader in solar power in just a decade

In the eastern Chinese city of Wuxi, home to the world’s biggest maker of solar panels, labour is so cheap that workers carry out jobs by hand while machines designed to perform the same tasks sit idle.

The low cost of labour, coupled with the massive scale of production at its 14,000-person plant, have enabled China’sSuntech to become the global industry leader in just a decade.

Chinese producers now dominate the global solar power business. But their success has become a major global trade issue as American companies accuse them of dumping in the US market and receiving unfair subsidies from Beijing.

The US government is due to announce findings on the issue later this month, which could result in duties against Chinese manufacturers.

Suntech denies unfair business practices have helped make it the world’s largest producer, but it makes no secret of its strategy of keeping prices low to boost sales and make solar power available to more people.

“We don’t believe we have any unfair subsidies or anything like that,” said Suntech’s vice president for global marketing Edwin Huang. “We just hope it doesn’t turn into a full-scale trade war. It’s not good for anyone.”

US companies have accused China of improperly subsidising its solar sector as part of a no-holds-barred commercial battle for supremacy over an industry experts estimate will be worth trillions of dollars in the future.

They say Chinese competitors have access to cheap financing from state-owned banks and outright government subsidies aimed at building up the industry, as Beijing makes alternative energy a priority.

At least three US solar companies collapsed last year as global prices slumped, among them Solyndra, which had a $535 million loan guarantee from US President Barack Obama’s administration.

Evergreen Solar, once listed on the Nasdaq exchange, and high-profile Intel spin-off SpectraWatt also shut down.

Continue reading “China solar giant faces glare of US trade war”