US-China Trade Update 4-24-2012: Trust Between the U.S. and China? Survey Says...

A recent Gallup-China Daily USA poll indicates that while most Americans, 81 percent, believe that a close U.S.-China relationship is a good thing for the United States, lack of trust remains a major barrier for the two countries. Following this poll, a survey conducted by the Committee of 100 revealed only 48 percent of the Americans surveyed think the U.S. should trust China more.  45.8 percent of Chinese participants felt the U.S. is trustworthy. In China, the primarily concern was the U.S.-China dispute over the Chinese currency exchange rate.  Ranking as the top two concerns of the U.S. public are the U.S. trade deficit  and the alleged loss of U.S. jobs to China.  Concerns about alleged loss of U.S. jobs to China may have been bolstered by Ford Motor's recent announcement.  Ford Motor has chosen China for its largest factory expansion programs in a half century.  Plans include a $760 million assembly plant in Hangzhou and a $600 million expansion of an assembly plant in Chongqing.  

Contents
Global Relations
Economy
Trade

Global Relations

In the News –China, U.S. need to improve trust and cooperation: survey
Xinhua, April 20, 2012
China and the United States needed to further improve political and business cooperation, according to a new survey released on Thursday…The survey, conducted by the Committee of 100 (C-100), a U.S. non-partisan Chinese-American cultural-exchange advocacy organization, revealed that less than half of the U.S. public (48 percent) think the U.S. should trust China a great deal or some, while among Chinese participants, 45.8 percent think the U.S. is trustworthy.” Read more  

In the News –Chinese, U.S. businesses build carbon black plant in north China
Xinhua, April 19, 2012
China's Risun Chemicals Co., Ltd. and its U.S. joint venture partner, the Cabot Corporation, broke ground on a new carbon black plant in north China's Hebei province Wednesday…The project, located in the city of Xingtai, is scheduled to be completed in mid-2013 with an investment of about 900 million yuan (143 million U.S. dollars). The Boston-based Cabot owns a 60-percent equity interest in the plant.”
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In the News –Most Americans see benefits of close U.S.-China ties: poll
Xinhua, April 18, 2012
Most Americans believe that a close U.S.-China relationship is a good thing for the United States, while lacking of trust is a major barrier for the two countries to further bilateral ties, according to a poll released Tuesday.” Read more  

Commentary Christopher R. Hill: Is North Korea Losing China?
Project Syndicate, April 18, 2012
“For most countries, the spectacular failure of a rocket launch would mean a return to the drawing board, or at least some introspection aimed at figuring out what went wrong. But that does not appear to be the case in North Korea, where the flubbed launch of its long-range Unha-3 rocket has merely set the stage for a new level of defiance: the detonation of yet another nuclear device, perhaps bigger than in the past.” Read more

Commentary –Minxin Pei: The Paranoid Style in Chinese Politics
Project Syndicate, April 17, 2012
“Henry Kissinger, who learned a thing or two about political paranoia as Richard Nixon’s national security adviser and Secretary of State, famously said that even a paranoid has real enemies. This insight – by the man who will be known forever for helping to open China to the West – goes beyond the question of whether to forgive an individual’s irrational behavior. As the scandal surrounding Bo Xilai’s dramatic fall from power shows, it applies equally well to explaining the apparently irrational behavior of regimes.” Read more

In the News –Foreign Minister Yang Jiechi Has a Phone Conversation Respectively with the Foreign Ministers of the United States and the Republic of Korea (ROK)               
Xinhua, April 14, 2012
“ Foreign Minister Yang Jiechi had a phone conversation respectively with U.S. Secretary of State Hilary Clinton and ROK's Minister of Foreign Affairs and Trade Kim Sung-hwan and exchanged views with them on the current situation on the Korean Peninsula.” Read more

In the News –Chinese FM talks with U.S., South Korean counterparts on Korean Peninsula tensions                
Xinhua, April 14, 2012
“Chinese Foreign Minister Yang Jiechi has held separate talks by phone with his U.S. and South Korean counterparts Hillary Clinton and Kim Sung-hwan on tensions on the Korean Peninsula…Speaking to Clinton Friday and Kim Saturday, Yang said the Chinese side noted the concern of various parties about the Democratic People's Republic of Korea's (DPRK) satellite launch Friday. ” Read more

What They’re Saying -Remarks by Ambassador Zhang Yesui at The Fifth National Chinese Language Conference
Ambassador Zhang Yesui, The Fifth National Chinese Language Conference, April 12, 2012
“It is my great honor and privilege to attend the Fifth National Chinese Language Conference in the United States. I would like to first extend my congratulations to Asia Society, the College Board and Hanban for organizing the Conference. I also want to thank all the participants for your support and commitment to this particular initiative, and more broadly, to the promotion of Chinese language learning and teaching in the US as well as the educational and cultural exchanges and cooperation between our two countries.” Read more
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Economy

In the News –China Puts Propaganda Machine in High Gear to Undercut Media-Savvy Politician
New York Times, April 21, 2012
“‘Intimidating and courting Chinese journalists, Bo Xilai, an ambitious Communist Party official, fueled his political career by ably shaping his public image and seizing the spotlight in a way no peer had as he governed a Chinese city. But with his purge from the party’s top ranks this month, Mr. Bo has suddenly found himself the target of the same media apparatus that he once so carefully manipulated, and that now vilifies him in the name of the party’s leaders. ” Read more  

In the News –U.S., China must continue to build mutually beneficial economic ties: U.S. official
People’s Daily, April 21, 2012
U.S. Secretary of Commerce John Bryson told the 21st Committee of 100 Annual "Common Ground" Conference here Friday that the United States and China must continue to build a mutually-beneficial and a balanced economic relationship.” Read more  

In the News –China not violating UN resolutions on DPRK missile: US
People’s Daily, April 20, 2012
The United States believes China fully complies with UN Resolution 1718 and 1874 and did not provide assistance related to missile launching to the DPRK, a spokesman of the U.S. Department of State told reporters on Thursday at a daily press briefing.” Read more  

In the News –Suspected Sale by China Stirs Concern at White House
New York Times, April 20, 2012
“‘The Obama administration says it believes that a Chinese manufacturer sold North Korea the chassis and other parts for a missile-transport vehicle displayed in a military parade this week, a senior official said Friday, raising new concerns about China’s ability to enforce a ban on military sales to North Korea. ” Read more  

Commentary –Adam Segal: 5 Secrets Anonymous Should Steal From China
Foreign Policy, April 20, 2012
“Over the last few weeks, the hacker collective Anonymous has shifted its attention to China. On March 30, Anonymous China defaced the first five of what would soon be hundreds of business and a few minor official websites, warning the Chinese government that it is ‘not infallible, today websites are hacked, tomorrow it will be your vile regime that will fall.’ The Who's ‘Baba O'Riley’ (commonly known as ‘Teenage Wasteland’) played on many of the sites, and Chinese netizens were directed to a link that explained how to get around Internet controls. Another hacker associated with the group LulzSec told Reuters that he breached the China National Import & Export Corporation, a defense contractor, and downloaded company documents to several file-sharing websites.” Read more

In the News –Rural Chinese Flock to Tiny Electric Cars
New York Times, April 19,2012
“‘The tiny electric car that Chen Xianping drives to work over bumpy country roads in Shandong Province says much about the hurdles facing China’s efforts to promote electric vehicles and the big car companies’ efforts to sell them. ” Read more  

Commentary –Sophie Richardson: April Is the Cruelest Month … for China
Foreign Policy, April 19, 2012
“For China's cautious leadership, no news is good news -- and this has been a bad month. Rising tensions with the Philippines in the South China Seas have reached a point that Beijing has deployed ships. The ceasefire in Syria seems to be fraying -- again. Sudan and South Sudan are again engaged in armed conflict. And the United States, whose decline the Chinese leadership continues to trumpet, continues to pivot closer to Asia and is on the brink of dispatching an ambassador to Burma. The only good news seems to be North Korea's failed rocket launch. ” Read more

Commentary –Christopher K. Johnson: Beijing's Cracked Consensus
Foreign Affairs
, April 18, 2012
“The Chinese Communist Party's decision last week to suspend Bo Xilai -- the ‘princeling’ scion of one of the People's Republic's revolutionary founding fathers -- from the Politburo amounts to the most serious political earthquake to hit China's top leadership in decades. Beijing's simultaneous announcement that it has detained Bo's wife on ‘suspicion of intentional homicide’ in the death of the Briton Neil Heywood also violates the unwritten code -- put in place following the tumult and incessant purges of the Cultural Revolution -- that when it comes to politics, the families of the country's top leadership are off-limits.” Read more

Commentary –Rebecca Mackinon: The Not-So-Great Firewall of China
Foreign Policy, April 17, 2012
“Every news organization needs a social media strategy. Even China's government-controlled Xinhua News Agency now "tweets" news bulletins through Twitter-like microblogs called weibo -- through which more than 300 million users share details of their daily lives, jokes, gossip, and news.” Read more

In the News –U.S. not concerned about China's influence in L.America: White House official
Xinhua, April 15, 2012
The United States is not concerned about China's growing influence in Latin America, a senior White House official said here Saturday…‘We're not concerned at all,’ Ben Rhodes, deputy national security advisor for strategic communications, said at a press briefing on the sidelines of the sixth Summit of the Americas.” Read more  

In the News –Chinese FM talks with U.S., South Korean counterparts on Korean Peninsula tensions
Xinhua, April 15, 2012
Chinese Foreign Minister Yang Jiechi has held separate talks by phone with his U.S. and South Korean counterparts Hillary Clinton and Kim Sung-hwan on tensions on the Korean Peninsula…Speaking to Clinton Friday and Kim Saturday, Yang said the Chinese side noted the concern of various parties about the Democratic People's Republic of Korea's (DPRK) satellite launch Friday.” Read more  

Commentary – Gordon G. Chang: Grim Fairy Tale: China's Economy Grows at 8.1%
Forbes, April 15, 2012
“On Friday, Beijing’s National Bureau of Statistics announced that the Chinese economy grew 8.1% last quarter, down from 8.9% in the previous period.  Q1 growth was the lowest in 11 quarters…On the day before NBS made its announcement, market chatter pegged growth at 9%, spurring rallies.  Yet investors were not the only ones taken by surprise on Friday.  Consensus surveys of analysts forecasted 8.3% to 8.5%.  The 8.1% figure even came in below recent Chinese government estimates.  As late as the third day of this month, Zhang Xiaoqiang, vice chairman of the National Development and Reform Commission, predicted 8.4% growth, citing ‘initial figures’ from ‘relevant China research institutes.’” Read more

What They’re Saying -Remarks by Locke: Successive U.S. Presidents reaffirm and support One-China Policy
Gary Locke, U.S. Ambassador to China ,People’s Daily Online, April 13, 2012
“Gary Locke, U.S. Ambassador to China, made an online communication with Chinese netizens at the Qiangguo Forum, People's Daily Online, on the afternoon of April 13, 2012.” Read more  

Commentary –Sheena Chestnut Greitens: Drama on the High Seas  
Foreign Policy, April 12, 2012
“On Wednesday, a Philippine warship attempted to detain Chinese boats fishing in waters that both sides claim as part of their territory, but was stopped by two Chinese surveillance vessels. In what has been the tensest moment militarily for the Philippines in years, the government warned the Chinese ambassador that the Philippines was "prepared to secure its sovereignty" in the disputed areas, and the two sides are still trying to find a diplomatic resolution to the standoff, while continuing to send ships on Thursday.” Read more  

What They’re Saying -Remarks by Locke: U.S. welcomes Chinese investors
Gary Locke, U.S. Ambassador to China ,People’s Daily Online, April 12, 2012
“People's Daily Online: China is the largest foreign holder of U.S. Treasuries. But some Chinese people estimate that such big amount of U.S. debt will definitely cause the shrinking of Chinese assets. What do you think about it?” Read more  

What They’re Saying -Remarks by Locke: U.S., China can solve problems facing the world together: Locke
Gary Locke, U.S. Ambassador to China, People’s Daily Online, April 11, 2012
“People's Daily Online: This year is the 40 anniversary of U.S. President Nixon’s first visit to China as well as the 40 anniversary of the release of Sino-US Joint Communiqué. On February this year, Chinese Vice President Xi Jinping paid an official visit to the United States. Do you have any expectations and suggestions on the development of the China-U.S. relationships?” Read more 
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Trade

In the News –Ford to Build Plant in China to Bolster Global Sales
New York Times, April 19,2012
“‘Ford Motor has chosen China for its largest factory expansion program in a half century, announcing on Thursday that it would build a $760 million assembly plant in Hangzhou, two weeks after announcing another $600 million plan to expand an assembly plant in Chongqing and less than six weeks after completing a third assembly plant in Chongqing. ” Read more  

Analysis – John Baffes: Prospects Daily: Overseas demand for U.S. financial assets eases in February, while US retail sales rise
World Bank, April 16, 2012
“Important developments today: 1. Overseas demand for U.S. financial assets eases in February; 2. U.S. retail sales rises for tenth consecutive month…Overseas demand for U.S. financial assets eases in February. Foreign demand for U.S long-term securities slowed in February, but China increased its share for second consecutive months, according to data released by Treasury Department. Net purchases by foreign investors were $24.8 billion in February, down from the revised $95.7 billion in January, with foreign official institutions accounting for $18.6 billion. Meanwhile, China remained the largest foreign U.S. creditors after its Treasury holding increased by $12.7 billion to $1.179 trillion – the second straight month of increase after five month of net selling. Japan, the second-biggest foreign holder of Treasuries, also increased its holding in February by $13.1 billion to a record $1.1 trillion.” Read more
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