Chips, politics and economic dominance

Officially Huawei became the world’s number one smartphone player after shipping 55.8 million handsets, surpassing Samsung in the second quarter of 2020. — Bloomberg

SMIC'S progress in industry commendable effort despite sanctions

 

TWO weeks ago, without much fanfare or large-scale promotional event, Huawei Technologies launched a surprise pre-sale of its latest Mate flagship model.

This was out of the blue, considering that Huawei suffered for the past three years since the United States trade sanction during the Donald Trump-led administration which placed Huawei on the export blacklist depriving the phone and network giant from key semiconductor components necessary to manufacture its successful premium smartphone products.

At its peak in 2020, Huawei had 38% of China’s total smartphone market share with Vivo coming in second at 17.7% and Oppo coming in third at 17.4%.

Globally, Huawei had just over 10% with much room to catch up to Samsung and Apple, which had an estimated 30% and 26% respectively.

Despite that, it officially became the world’s number one smartphone player after shipping 55.8 million handsets, surpassing Samsung in the second quarter of 2020.

This did not last long, as in the year after the trade sanctions kicked in, Huawei suffered immensely when its revenue for the consumer division plunged 47% in the first half of 2021 and fell out of the world’s top five smartphone maker for the first time in six years. 

 If that wasn’t enough, Huawei had to endure a prolonged winter because of the sanctions with market commentators even speculating they will exit the smartphone market entirely.

To stay afloat, Huawei sold off its entire stake in Honor, the budget range smartphone business for Us$15.2bil to Shenzhen Zhixin New Information Technology Co Ltd, a consortium made up of over 30 dealers and includes a state-owned enterprise of the municipal government of Shenzhen.

Hence, when social media caught wind of Huawei Mate 60 pro with videos of long queues for the launch of the smartphone, it attracted global attention. The two questions on everyone’s mind were, “how did Huawei do it with the sanctions ongoing?” and “is this the start of Huawei’s path to reclaim its smartphone throne?”

For those who are not too familiar, one should understand that chips are denominated in different measurements such as 5nm, 7nm and 10nm. It represents the specific generation of chips made with a particular technology and the smaller numbers represent more advanced and efficient technology.

In the past, these numbers indicated the size of the smallest features or transistors that can be produced on a chip using a particular manufacturing process.

What is interesting about Huawei’s latest smartphone launch is that the Kirin 9000s System on Chip that powers the phone model appears to be manufactured using an advanced 7nm process.

Following the trade sanction which was meant to cripple Huawei’s advancement in smartphone manufacturing, most would assume that Huawei would not have access to advanced chips.

In addition, Semiconductor Manufacturing International Corp (SMIC), China’s state-backed chip manufacturer which is widely regarded to be the top in China, is only capable of producing 14nm at that time. In addition, SMIC has not been able to procure the advanced Extreme Ultraviolet (EUV) lithography systems that are used to produce chips at 7nm and below before they were sanctioned as well.

Based on teardown analysis by reviewers online, the chip’s overall performance seems to match that of Snapdragon 888 or Apple A13 chipsets which were launched in 2019-2020. But for those who might have some familiarity with the chip fabrication industry, this is likely not the case as the 7nm chip could be produced using the older generation deep ultraviolet machines which China manufacturers can still import.

This would require usage of multi-patterning, a technique that has been utilised by Taiwan Semiconductor Manufacturing Company Ltd (TSMC) in 2017 of producing 7nm chips before EUV was introduced.

In fact, SMIC reportedly used this technique to produce a 7nm chip for bitcoin miners last year, so they are no stranger to the technique.

The downside of this technique is that it will waste more time, energy, water, while also resulting in higher defects and lower yield. Hence the cost of production is likely much higher.

Nonetheless, EUV machines are still needed to advance beyond 5nm process, and at 3nm and below, multi-patterning would be required even with EUV machines. Hence, we can say that the real bottleneck of the United States trade sanction will hit it hard beyond 5nm.

Currently, SMIC, while improving, is still lagging its global peers; TSMC and Samsung have already started mass production of chips using the 3nm process in 2022 which is two generations ahead of the 7nm process used by SMIC.

The gap is around four years but without access to EUV machines, it could take much longer for SMIC to reach 3nm. It is important to note that all its competitors are now working towards mass production of 2nm chips in 2025.

Considering how SMIC is also sanctioned by the United States, it is remarkable to see it making progress. SMIC will likely continue to be supported by the Chinese government in developing advanced chips.

So long as self-interest politics remains the priority over mutual prosperity and the technology transfer agenda, we will see companies and manufacturing bases move across regions based on the countries’ political alignments or foreign policies rather than merits.

Apart from the United States and European manufacturers that have been diversifying production out of China, even some Chinese suppliers are building new factories in our country as they do not want to lose their markets outside of China.

For now, most are setting up in the existing states with matured industry supply chains such as in Penang and Johor.

Hence, sad to say, while this fight between the two economic powerhouse is detrimental to the world in the long term, in the short term, it appears that it is good for our nation, and we should continue to capitalise on the opportunity.

At the end of the day, every country, especially the larger economies, hopes to maintain its economic dominance over the rest of the world. This era, thankfully, is not an era where the wars between countries are fought with guns and bullets. It is an era where the race is on technological advancement and scientific breakthrough.

Apart from the semiconductor chip competition that has been ongoing since the start of the United States-china trade war, the Covid-19 global pandemic has raised the awareness for the government on the importance on advancing research and development in the pharmaceutical and healthcare industry.

Even countries with the strongest military power cannot avoid the same fate of being engulfed in the effects of the pandemic like any other Third World country.

Unlike the United States, Europe, Taiwan and South Korea, China started research and development in the semiconductor industry much later. We must remember China only started focusing on developing its advanced chip technology recently.

Before the decoupling with the United States happened in 2020, there was no urgency to do so, given that they could still rely on imported technology.

As nations around the world continue to become more tribal, it is crucial to be self-sufficient, be it in the area of technology development, healthcare or food security. It may take awhile but eventually, government leaders ought to revert to multilateralism and focus on the benefits of building a global economy in the interests of mankind.

That is the best way forward for humanity.

By NG ZHU HANN

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Ten Republican lawmakers jointly sent a letter dated Thursday to Alan Estevez, undersecretary of Commerce for Industry and Security, exerting pressure and presenting seven demands. These demands include the establishment of a new agency dedicated to controlling the export of American technology to China, imposing “full blocking sanctions” on both Semiconductor Manufacturing International Corporation (SMIC) and Huawei, and placing all their subsidiary companies on the Entity List.

US, China and the indelicate art of insults

'We lied, we cheated, we stole', ‘the Glory of American experiment’ by US Secretary of State/Ex-CIA director Mike Pompeo 

Strong words are being hurled at each other but there is calibration in the cursing.

THERE’S this memorable anecdote in Mario Puzo’s crime classic, The Godfather, where the mafia don from New York sends his henchman to reason with a Hollywood mogul who is standing in the way of his godson getting a film role perfect for him in every way, except that he has alienated the studio big shot who now hates his guts.

Where words fail, more potent nudges are sometimes needed – in this case, a horse’s head placed in the studio chief’s bedroom while he is asleep, blood and reedy tendons included, did the trick. It persuaded the man that the favour requested, and declined, is serious business. And thus he yields, shouting invectives and threats at the actor and his Italian origins, the consigliere who had reached out to him with the initial contact on behalf of his boss, and the mafia.

But not a word against the Godfather, himself. Genius, writes Puzo, has its rewards.

There’s no special genius, and even less reward, in the acrimonious exchanges that are causing a tailspin in ties between the world’s two biggest military powers and economies.

If anything, it bespeaks dangerous brinkmanship as a once-overwhelmingly dominant hegemon confronts a resolute challenger now picking a cue or two from its own playbook on how to throw weight around.

Nevertheless, the curses the movie mogul held back from uttering came to mind as I checked around the region about the goings-on at the Asean Ministerial Meeting and related meetings with dialogue partners hosted earlier this month by Vietnam.

Perhaps the two warring sides were mildly cramped by the fact that the conference did not take place in a single hall but over video link. Even so, while both the United States and China did robustly put forth their positions, each seemed to be taking care to keep the attacks from getting too immoderate.

Indeed, the rare frisson, according to Asian diplomats privy to the talks, came when China’s Vice-Foreign Minister Luo Zhaohui, standing in for Foreign Minister Wang Yi, dropped an acid comment about “drunken elephants in the room”.

Faint light at the end of the dark tunnel of US-China ties? Maybe not. But then again, maybe.

Some cultures, particularly in Asia, teach their young that even insults have to be measured; if you spit up at a person high above you, the mucus falls back on yourself. If you do that to someone far below you, it is a waste of time to descend so low. Insults have to be exchanged between equals. But most important of all, never insult so completely that the door to a reconciliation is closed forever. Perhaps that’s what we are witnessing.

A real estate and casino mogul before he ran for his first elected office, which happened to be the US presidency, the New York-born and raised Donald Trump, whose most trusted counsel is close family, has ordered his administration to pile on his strategic adversary the most intense pressure seen in a halfcentury. Secretary of State Mike Pompeo has enthusiastically fallen in line, as have his key deputies, including Max Pottinger. Other arms of US government such as the Pentagon have fallen in line as well.

In July, two aircraft carrier groups led by the USS Nimitz and USS Ronald Reagan conducted war games in the South China Sea, joined by subsurface vessels and nuclear-armed bombers. Technology links built up over decades are being torn apart like the wanton act of a child and within the US, the Federal Bureau of Investigation is putting Chinese nationals and Americans of Chinese ethnicity under unprecedented scrutiny.

Trump’s long arm has even snatched Meng Wanzhou, the powerful daughter of the Huawei founder, one of China’s most respected tech tycoons.

Chinese diplomats and media have pushed back, and unfeelingly for a nation where the virus was first identified, sometimes suggesting that the US could learn a lesson or two from Beijing on how to control a pandemic. Also mocked at have been the racial tensions and the rioting that have scarred the US in the wake of the pandemic and the resultant economic hardship.

Nevertheless, through it all, most of the US vitriol has targeted the Chinese Communist Party (CCP), not the Chinese nation.

In a landmark speech in July at the Nixon Presidential Library, Pompeo declared that the “free world must triumph over this new tyranny”. At the Asean forum earlier this month, he underlined US “commitment to speak out in the face of the Chinese Communist Party’s escalating aggression and threats to sovereign nations”.

This week, Assistant Secretary of State for East Asian and Pacific Affairs David Stilwell began his testimony to the Senate Foreign Relations Committee by saying he was there to “discuss the threat posed by the Chinese Communist Party to the US and the global order” in three geographical regions, before going on to say that “it is now clear to us, and to more and more countries around the world, that the CCP under general secretary Xi Jinping... seeks to disrupt and reshape the international environment around the narrow self-centred interests and authoritarian values of a single beneficiary, the Chinese Communist Party”.

Just as the US has tried to separate the CCP from the Chinese people, Trump and Xi have been careful to not throw barbs directly at each other.

Indeed, Trump has claimed to have a “tremendous relationship” with Xi and he has described Xi as a “man who truly loves his country” and is “extremely capable”. He has also stressed that the two will be friends “no matter what happens with our dispute on trade”, and he also has spoken of his liking and “great respect” for China. On the other side, Chinese anger seems to be largely directed at Pompeo, rather than his boss.

At a recent panel discussion I moderated for the FutureChina Global Forum, I asked Professor Randall Kroszner, former member of the board of governors of the Federal Reserve System and who currently serves on the advisory board of the Paulson Institute, which works to promote US-China ties, whether he saw wiggle room for a patch-up after the election.

“Ultimately, there’s an understanding that major economic and military powers need to have connections, need to be able to talk and work with each other,” Prof Kroszner responded.

“There is a lot of manoeuvring and posturing that’s going on right now, but I don’t think anyone wants to burn any bridges. They want to make sure the bridges are still there, even if there are some blockades now.

“(That said) I don’t see those obstacles being removed right now.”

For now, of course, it does look as though things will get worse before they get better.

In July, the US shifted position on the South China Sea, proclaiming that it held as illegal all of China’s claims outside its territorial waters. This has emboldened some, Vietnam and the Philippines particularly, to be more assertive with China over the South China Sea dispute.

Still, some in Asean suspect a certain fakery in all this, a sense that a lot of the noise coming from the US is mere posturing. There are few illusions about China either.

Indeed, the lull in assertive Chinese behaviour in the South China Sea witnessed in the lead-up to the Asean ministerial meet and forums is generally seen as nothing more than temporary easing of pressure to get a “good meeting”.

Malaysian Foreign Minister Hishammuddin Hussein spoke for many when he said the South China Sea issue “must be managed and resolved in a rational manner” and Asean has to “look at all avenues, all approaches, to ensure our region is not complicated further by other powers”.

Indeed, some even think Trump is capable of doing a deal with Beijing the week after election day, should he win.

Already, the latest iteration of the TikTok deal is being called by some analysts as a watered-down version of what Trump originally sought to demand, something that had been on the table months ago, although it is not quite clear if China could live with it.

Likewise, it is not lost that China has held back on announcing its own blacklist of US firms – “unreliable entity list” as it is called, although its intentions were announced more than a year ago.

Beijing is said to be staying its hand to both not exacerbate tensions, as well as to wait for the US election results. While the document explaining the unreliable entity list is 1,500 characters long, the attached clarifications are double in length – suggesting much of this is shadow play.

If a deal needs to be made, the Pompeos and Pottingers can always be switched out and more moderate voices brought in; Trump does not shrink from letting people go. Indeed, given that he is said to harbour ambitions about a 2024 presidential run, it might even help Pompeo’s political career to be made a casualty of a rapprochement with China, so he can distance himself from the deal.

Still, it hardly needs to be said that Trump is capable of busting every code in the book, spoken or unspoken. With the election looming and his own standing in pre-election surveys not looking too promising, he let fly this week at the United Nations, returning to his “China virus” theme, boasting about three US-developed vaccines in Phase III trials, and the unprecedented rearmament of America under his watch. America’s weapons, he declared, “are at an advanced level, like we’ve never had before, like, frankly, we’ve never even thought of having before”.

Judging from Chinese media, Beijing read it for what it was; while made to a global audience, the speech was targeted at the domestic voting public. Nevertheless, it did not go without a response.



An editorial comment in the Global Times on Wednesday reminded Trump that the “hysterical attack on China violated the diplomatic etiquette a top leader is supposed to have”.

In short, never omit to leave that bit of margin for a future reconciliation.
 

by Ravi Velloor, is an associate editor at The Straits Times, a member of the Asia News Network (ANN) which is an alliance of 24 news media entities. The Asian Editors Circle is a series of commentaries by editors and contributors of ANN.

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Wang Yi f>Uck trump and his dogs - SG Talk

Foreign Minister Wang was furious and seriously warned the United States that 2 million troops are ready at any time?

1. At the press conference, a reporter asked Wang Yi, a spokesperson for the outreach ministry: US President Trump wanted to send his own investigator to China to investigate the epidemic-related situation. If China has deliberate responsibility for the spread of the virus, Need to bear the consequences, do you have any comments?

2. Wang Yi’s answer: The virus is the common enemy of all mankind and may appear at any time and anywhere. Like other countries, China has been attacked by the new coronavirus and is the victim, not the perpetrator, nor the virus. "accomplice".

At that time, H1N1 flu was first diagnosed in the United States and broke out in a large area, spreading to 214 countries and regions, resulting in the death of nearly 200,000 people. Has anyone asked the United States to compensate?

In the 1980s, AIDS was first discovered in the United States and quickly spread to the world, causing pain to many people and many families. Has anyone sought compensation from the United States?

The financial turmoil that occurred in the United States in 2008, Lehman Brothers went bankrupt, and eventually evolved into a global financial crisis. Does anyone demand compensation from the United States?

The United States must be clear that their enemy is a virus, not China.

3. Wang Yi went on to say: If Trump and Pompeo were not guilty of geriatric madness, then they should be clear that China is not the one that was allowed to be trampled on by the "eight-nation coalition", nor is China even Iraq. Venezuela, not Syria, is not where you want to come, what you want to check.

China is not guilty, but you are not qualified, nor are you qualified! In the early stage of the epidemic, we took the initiative to invite WHO and Chinese experts to conduct a joint inspection in the epidemic area, and put forward preliminary inspection results on the outbreak and spread of new coronavirus.

The investigation request made by Trump is purely unreasonable and is a manifestation of hegemony. They override the United States above international organizations and all humankind, and it seems that only they can be trusted. But is the United States really credible? Iraq and Venezuela are a lesson.

4. We have to warn Trump that if we want to calculate China's abacus, it is better to think about it. Because 1.4 billion people will not agree, China's 2 million army is not a decoration, but China's steel Great Wall. China's Dongfeng missiles are not used to rake, but to fight dog jackals.

China's nuclear submarines are not used to travel on the seabed, but to combat uninvited guests. Chinese nuclear weapons are not used to frighten anyone, but from self-defense. Anyone who wants to taste something, think about it, you tell me.

5. We want to warn Trump that if China wants compensation, it will count from the time when the Eight-Power Allied Forces invaded China, until the cases that Wang Yi has just proposed are counted together. You have to compensate the old historical accounts of China and the world.

6. Now China is in a very good position in the world, the first to control the new coronary pneumonia, the first to enter the stage of economic recovery, and now it is to increase horsepower to export anti-epidemic materials to the world, China is catching up with the total economy The time to go beyond the United States is also greatly advanced. This is unacceptable to Trump. The United States has been dragged into the quagmire by Trump. At this time, Trump wants to make China and the world feel better. Harmfulness is indispensable, anti-Trumping indispensability is absolutely indispensable, and wicked people have their own harvest!

I hope that every Chinese can turn this article out so that our China becomes stronger and stronger and support all patriotic groups. 

 

 

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Singapore growth forecast down to 1%

Unknown future: As Singapore further cut its growth forecast, New Zealand, India and Thailand also cut their interest rates signalling concerns on growth outlook. — AFP

SINGAPORE: Singapore slashed its full-year economic growth forecast as global conditions were seen worsening and data confirmed the slowest growth rate in a decade amid mounting fears of recession in the city-state.

The government cut its forecast range for gross domestic product in Singapore – often seen as a bellwether for global growth because international trade dwarfs its domestic economy – to zero to 1% from its previous 1.5%-2.5% projection.

Singapore’s downgrade adds to concerns globally about the effect of increasing protectionism on exports and production.

The deterioration in the global outlook has pushed central banks to cut interest rates and consider unconventional stimulus to shield their economies.

“GDP growth in many of Singapore’s key final demand markets in the second half of 2019 is expected to slow from, or remain similar to, that recorded in the first half, ” the trade ministry said in a statement to the media yesterday.

The ministry flagged a host of growing economic risks including Hong Kong’s political situation, the Japan-Korea trade dispute, the Sino-US tariff war, slowing growth in China and Brexit.

Final second quarter GDP data yesterday showed a 3.3% on-quarter contraction on a seasonally-adjusted annualised basis. That was slightly smaller than the 3.4% decline seen in the government’s advance estimate but deeper than a 2.9% fall predicted in a Reuters poll and a sharp contrast to the robust 3.8% first quarter expansion, which was driven by brisk construction activity.

Yesterday’s data also confirmed annual GDP expanded 0.1% in April-June from a year earlier, its slowest rate in a decade, and lower than poll expectations of 0.2% and the first quarter’s 1.1%.

Singapore’s benchmark stock index fell 1.2% to a two-month low in early trade, underperforming other bourses in the region.

Singapore has been hit hard by the Sino-US trade war, which has disrupted world supply chains in a blow to business investment and corporate profits.

Also yesterday, Singapore cut its full-year forecast for non-oil domestic exports to a 9% contraction from an 8% fall previously.

That comes after a 26.9% drop in electronics exports in the second quarter year-on-year.

“With trade tensions between the US-China unlikely to abate anytime soon, we expect exports and trade-related services to push the economy into technical recession in Q3, ” said Sian Fenner, lead Asia economist at Oxford Economics.

New Zealand, India and Thailand all cut interest rates last week, signalling major concerns about the outlook for economic growth. Last month, the US Federal Reserve cut interest rates for the first time since 2008.

Singapore Prime Minister Lee Hsien Loong said in an annual speech last week that the government stood ready to stimulate the economy.

“It feels like the storm is coming if you look at the whole macro economic fundamentals softening, ” said Selena Ling, head of treasury and strategy at OCBC Bank.

“All the downside risks are piling up on one side, ” Ling added, pointing to the myriad of global risks flagged in the trade ministry statement. — Reuters

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Peter Navarro, a hawk that 'lacks intellect and common sense' is Trump's trade adviser or political agitator?

A profile photo of Peter Navarro Photo: IC

○ Navarro used the idea of the seven sins to criticize China, which showed his narrow and distorted mind

○ Navarro has been called the US President Donald Trump's "spirit animal" as Donald Trump Jr. called him "a fierce warrior" for his father's America First trade agenda

○ Politicians like Navarro have ruined the efforts made in the China-US trade talks and US society will pay for this, analysts said

White House trade adviser Peter Navarro on Sunday said that China must end the "seven deadly sins," a remark that was criticized by Chinese experts as "absurd and full of hostility" and that Navarro's dominance of economic issues in the White House is a source of sadness in current China-US trade ties.

Navarro, 69, is a White House trade adviser and ardent supporter of the trade war. Several days earlier, Trump escalated his tariff war with China and Navarro was the only person at the announcement who supported it.

Navarro used the Christian concept of the seven deadly sins to criticize China, which showed his narrow and distorted mind. His willful moves to stir up hatred between countries are the real sin, analysts said.

He has written three books discrediting China and produced documentaries portraying Beijing as a threat. He ingratiates himself with those in the White House in order to get promoted. He has a "big mouth" and was told to shut up after saying the Canadian Prime Minister deserves "a special place in hell." He has written a number of books, but has always been an unrecognized "non-mainstream economist."

Navarro's distinguishing feature among White House staff and senior officials is likely not that he is more of a "hawk" than others, but that he lacks intellect and common sense. He is highly compatible with his leader in his use of irrational methods, a Chinese scholar told the Global Times.

A US cargo ship (back) is seen at the Yangshan Deep-Water Port, an automated cargo wharf, in Shanghai on April 9, 2018. Photo: VCG

Out of favor

"Imagine the United States simultaneously engaged in trade wars with China, India, Pakistan, Thailand, the Philippines, Singapore, Ukraine, Mexico, Saudi Arabia, Chile, Brazil and Turkey," said a report by the Axios news website in August 2018.

Axios has obtained a copy of a draft executive order Navarro put together in the fall of 2017 that would have imposed tariffs on every product imported from every country doing significant business with North Korea, according to Axios.

"Its death is thanks to — well, just about everyone. Officials at Commerce, State, Treasury, and the Office of the United States Trade Representative all considered the proposal totally unworkable," Axios reported.

As long as he's in the administration, there will be a persistent, noisy, enthusiastic voice for these kinds of tariffs, according to Axios.

In fact, Navarro was out of favor in the White House when he proposed the tariffs. The American website Vox Media recalled that in the fall of 2017, John Kelly, then White House chief of staff, began controlling advisers' access to Trump by having Gary Cohen, director of the White House national economic council, restrain Navarro.

What did Navarro do? In order to get more direct contact with Trump, he often lurked in the West Wing of the White House at night and on weekends.

Navarro was named director of the newly established White House national trade council after President Trump's election in 2016, and he remained director after it was transformed into the White House office of trade and manufacturing policy in April 2017. However, Navarro's first year in the White House was difficult because Trump's economic team was run by "globalists."

An American with ties to Trump's business team told the Global Times that Navarro did not have his own team in the first few months in the White House and had to attend meetings alone. Not only was he excluded from many high-level strategy meetings, he was also required to copy all work emails to Cohen.

However, two personnel changes in early 2018 gave Navarro an opportunity. In February, Rob Porter, a top political aide and White House staff secretary who was a key supporter of free trade, resigned over domestic violence allegations. In March 2018, Cohen resigned after Trump insisted on tariffs on steel and aluminum products.

Navarro was eager for the vacant position and went all out for it in private, but publicly pulled his punches and said he wasn't competing for it, Politico reported.

Navarro eventually failed, but rose in stature. According to one American trade expert, Trump wanted protectionism, but almost everyone in the room disagreed.

Lü Xiang, an American issues expert at the Chinese Academy of Social Science, told the Global Times that Navarro's role in the process of economic policymaking in White House was elevated after Cohen's resignation. It is said that his annual salary was raised from second class to first class from March 2018, lower only than that of the President and vice president, which shows the appreciation with which he has been received.

In May 2018, the China-US high-level trade consultation was held in Washington.

A reporter at Bloomberg said the White House had not scheduled Navarro for the talks because of his inappropriate and unprofessional behavior. But Navarro criticized Steven Mnuchin, secretary of the US Treasury, in the media for giving too much ground in the talks. A few days later, Trump repudiated the negotiations and imposed taxes on $50 billion worth of Chinese products.

Given Navarro's influence, Time magazine published an article in August 2018 saying that he does not have as much power as Mnuchin or the same responsibilities as trade representative Robert Lighthizer, but that his role should not be underestimated. If Stephen Miller, a controversial White House senior adviser, is the infamous player behind immigration, Navarro is the core leader of a series of much-criticized economic policies.

Unpopular loser

In published photos, Navarro looks somber, with a high forehead and gray hair.

He has a lot more to show for himself, with his Harvard degree, his doctorate and so on, but it is his paranoia that is his most memorable feature. In fact, Navarro originally wanted to be a politician, not an adviser, but he had a problem: people don't like him.

Navarro was originally registered as a Republican, but ran unsuccessfully for office four times as a Democrat in the 1990s. He was once close to Nancy Pelosi, speaker of the United States House of Representatives, and former secretary of state Hillary Clinton.

When he ran for congress in 1996, then-president Bill Clinton opposed him. His defeat was devastating: his wife divorced him and he fell deeply into debt.

Until 2008, he was a supporter of Democratic politicians, especially Hillary Clinton. But in the election of 2016, Navarro became an adviser to Trump. Trump is said to have suffered without the help of economists, and his son-in-law Jared Kushner asked Navarro to join after searching Navarro's book on Amazon.

Born into a working-class family, Navarro grew up with his mother and was a hard-working graduate of two prestigious universities, Tufts and Harvard. However, his experience can be described as changeable and ill-fated.

Lü argues that his life experience has led to Navarro's perennial unhappiness, and that he will spare no effort to translate his absurd claims into concrete policies once he is promoted by a leader who approves of him.

Although he is valued by his leader, Navarro was not liked by his colleagues. According to some American media, Navarro has a tough personality, and can be unaccommodating and unpopular. Navarro is as rude as ever when Trump cannot hear, scolding and belittling those who disagree with him.

'Spirit animal'

Navarro was called "President Trump's spirit animal" by Axios news website, as many scholars and experts in economy poured scorn upon his ideas on trade.

"Peter is a fierce warrior for my father's America First trade agenda, and while it may upset some members of the failed bipartisan establishment of the Washington Swamp, he understands that we can't allow China to continue taking advantage of American workers and hollowing out our industrial base," Donald Trump Jr. said in a statement to The Washington Post. "His only agenda is my father's agenda and the White House is lucky to have him."

Some media pointed out that Navarro is the president's intimate friend only when they talk about tariffs.

Experts said that Navarro was away from the spotlight for a while but then came back with a madder attitude.

Navarro appeared on Fox news on June 13, criticizing China in many fields, including intellectual protection and currency.

Many of Navarro's propositions on trade and economy are condemned as unreasonable. Many mainstream economists think he has created a new school of economics dubbed the "stupid school." His theories usually go against the principles of economics and he has made basic mistakes. In his articles, he has confused tariffs with added-value tax, Lü said.

"While purportedly an economist by training, Navarro's economics is misguided, inaccurate and politicized," Stephen Roach, a faculty member at Yale University, and former chairman of Morgan Stanley Asia, wrote in an editorial for the Global Times in July 2018.

It is normal that China and the US have differences, as they have their own interests. Instead of offering constructive advice to deal with these differences, Navarro has acted more like a political agitator. China and the US have gone through 12 rounds of trade talks and are trying to find ways to reach a consensus. The actions of some politicians, including Navarro, remind us that certain politicians' tricks have ruined the good momentum of the trade talks again and again, Chinese experts noted that the US society will eventually pay for these politicians' wrong deeds.

By Liang Yan, Qing Mu and Fan Lingzhi, Wang Huicong contributed to the reporting Source link 

Headless Hawk

 

Peter Navarro Photo: IC

Peter Navarro: trade adviser or political agitator?  

White House trade adviser Peter Navarro on Sunday accused China of committing the "seven deadly sins." He said China must "stop stealing our intellectual property, stop forcing technology transfers, stop hacking our computers, stop dumping into our markets and putting our companies out of business, stop state-owned enterprises from heavy subsidies, stop the fentanyl, stop the currency manipulation" before the trade war comes to an end.

The "seven deadly sins" refer to the seven original vices in Catholic teachings. Such a metaphor reflects Navarro's narrow-mindedness and psychological distortion. He wantonly hyped hatred between major powers, which is a real sin.

Navarro's seven accusations against China are all clichés. The accusations are long-term China-US disputes and different definitions of the disputes. But of all remarks made by US officials on such differences, Navarro's summary was the most vicious. It was not only ridiculous, but also full of hostility. His words have exposed the fact that his virtues can't compare with his position. It is the woe of China-US economic and trade relations that such a person is hijacking the White House's economic discourse power.

US media reported that Navarro is a key figure who has helped bring about the US decision to impose additional tariffs on Chinese products. He is a major spoiler contributing to the US breach of promises.

China has led its 1.4 billion people to prosperity and development. The country has not been involved in any war in more than 10 years, and has played a positive role in the UN's climate action. As a trading power, China has made every deal with the US by mutual consent.

It is normal for China and the US to have different standpoints toward their disputes. Trade is mutually beneficial and China cannot force the US to have hundreds of billions of trade with it. This is common sense. By no means can Chinese people understand why the US could define China-US trade disputes in so many weird ways. The US side stubbornly insists on its values about interests, which are not suitable in current globalized world.

The two countries can improve trade balance by adjusting many practices. The Chinese side is willing to take into consideration some of the US' concerns.

But wielding a tariff stick is unacceptable to China. Navarro said China-US trade won't end unless China satisfies all the conditions. He speaks as if it's only China's one-side wish to end the trade war. Isn't it boring to still threaten China so shallowly after one and a half years of trade war?

The fact is if the US side has no sincerity to reach a fair deal, China is prepared to fight the trade war to the end. China is being forced to do so, but it can do it well under pressure until the other side is discouraged.

It seems Navarro didn't offer the president a technical solution to solving China-US differences. He behaves more like a political agitator. The two sides have gone through 12 rounds of trade talks through which negotiating teams work hard to find common ground.

But Navarro reminds us that some people's political calculations keep impacting on the US negotiating position. American society will eventually pay for these people's politics.

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The agreement reached between Chinese President Xi Jinping and his US counterpart, Donald Trump, at the 14th G20 summit in Osaka, Japan, is in line with the best expectations of international public opinion. Given the fact that the Sino-US trade talks have run hot and cold in the past, opinions are divided over whether the new round of trade talks will successfully do the job.

The agreement has broken the deadlock between China and the US. However, Beijing and Washington still face the arduous task of implementing the consensus reached between the two presidents while overcoming differences during the negotiations.

During the meeting, Xi and Trump clinched a deal to restart economic and trade consultations between their countries on the basis of equality and mutual respect. The US side also agreed that it will not add new tariffs on imports from China. These deals add new possibilities to end the year-long trade dispute between the world's two largest economies that has been deadlocked since May.

It is not a big surprise for Xi and Trump to reach such an agreement. The outcome is logical and guided by the principles of trade and economy. It is also in accord with the general expectations of the international community. Such a result is undoubtedly in the interests of both the Chinese and US societies as it frees people in both countries from the fear of an escalating trade war.

None of the business communities or general public in China and the US want a trade war against each other. In the US, the initiator of the trade war, the call to end the dispute is gaining more and more support. To sum up from all perspectives, the result of the meeting complies with the real expectations and desires of both societies.

Nevertheless, China-US trade tensions have not been completely settled. There is no winner in this current dispute. Public opinion in both countries will likely be critical of an "incomplete victory" against the other. It is a situation similar to the ice-breaking movement made by China and the US to solve trade issues last December. The US media has a tradition of thriving on criticism. In that case, some US media are expected to argue that Washington has made too many concessions to China. The Democrats will also take it as an opportunity to mount pressure on the US government. These uncertainties come from the US and are its own internal concerns.

The situation after resuming economic and trade consultations between the two countries is even more critical. It is worth noting that the Trump administration has repeatedly contradicted itself in the past. The complexity of the power structure of the US government, a divergence of opinion within the administration's team and the need to win the 2020 presidential election are foreseeable reasons for its reneging. Not only has China been on the alert for such changes, but also the international community has learned from the US' historically ambivalent attitude. It will take a while to see what the Trump administration will do this time.

As for China, it is important to keep a clear mind and strong determination in this situation. As it turns out, China's perseverance in the fight against the trade bullying policy of the past few months has played an important role in reaching a positive result with the US side at the Osaka summit. China is willing to work with the US to find solutions. However, it's getting more and more clear that China is not afraid of a trade war and will not be beaten by one. A strong image is essential for China to reach an equal and mutually respectful agreement in discussions with the US.

China is committed to a peaceful development policy. China has not been involved in any war, nor severe conflicts with other countries in the past 30 years. As a result, some people doubted the possibility of China standing firm and staying strong when confronted with strategic challenges. Now, they have a clear answer from China's performance during this dispute. China is under the strong leadership of the CPC central committee and the Chinese government has the courage to take responsibility and make decisive decisions. Chinese society has actively responded to the government's call, and the whole nation has shared the ups and downs of a difficult situation. Cohesion has been the collective belief of the Chinese public. External threats will not force their way into Chinese society.

China has no intention of benefiting from defeating other countries. China sincerely hopes that all parties will enjoy a win-win situation through interaction and cooperation. Diplomatic interactions between China and the US over the past few decades have served as a multiplier effect to boost their national interests. A trade war on a large scale is out of the expectations of both the Chinese government and Chinese public. There is no doubt that China is willing to push forward China-US economic and trade cooperation to keep pace with the times and bring the interests of both sides in line with each other. China has no strategic resistance to such cooperation.

However, the duress of unilateralism does nothing to help solve the problems between China and the US but rather it causes severe unrest and damage to both sides and the rest of the world. If China and the US can meet each other halfway and reach consensus on key issues, then the two sides will find a solution to the trade dispute that is acceptable to both countries and beneficial to the world.

After a lot of fine tuning, Chinese society has grown mature enough to deal with any profound changes there might be in the China-US relationship. Chinese people are well-prepared for any possible uncertainty in future trade talks. The path of China's development will not always be smooth and that is accepted by the Chinese public. Chinese people will not be surprised by any potential turmoil in China-US economic and trade relations, and they know China will handle it accordingly.

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