THE VAST, bulbous-bowed Höegh Autoliners car-carrier, with room for 6,500 vehicles, takes up the space of three normal-sized ships in the Port of Tyne. Inside are several thousand shiny new Nissan Leafs, Qashqais and Jukes bound for the continent. Newcastle’s deep-sea port is not the country’s busiest, but because it serves nearby Nissan Sunderland, the biggest carmaking site, it is among the first in line to become one of the government’s swashbuckling new “free ports”. Such zones are physically inside a country but legally outside it for customs purposes. As well as zero tariffs, free ports pile on other goodies such as low taxes and loose regulation. The idea is that firms will flock to them. Brexiteers in particular dream of free ports pulling in companies and container ships from everywhere. Boris Johnson, the prime minister, has promised to anoint ten free ports—mostly big harbours and perhaps some airports. On August 2nd Liz Truss, the … [Read more...] about What free ports can and can’t achieve
Tariff free zone china
At the G-20 summit, President Trump did an about-face and reopened negotiations with Chinese President Xi Jinping. He held off on levying additional tariffs on $300 billion more in Chinese imports, meaning that American businesses can breathe a sigh of relief — for now. But a pause on new tariffs gives no more certainty to the markets than they had before the presidents met. Presidents Trump and Xi must craft a trade deal that eliminates tariffs altogether. Any tariff, no matter its scope, is bad news. Here are five reasons why: 1. Tariffs are a tax on American consumers and businesses. Tariffs are taxes. The fact is, the consumer pays these taxes, not the Chinese government. Even the president’s top adviser, Larry Kudlow, has said this. While the president says these taxes are payments from China, the truth is that they are taxes paid by American businesses and consumers as the costs are passed along and directly impact the price paid. There is simply not enough profit in … [Read more...] about Five reasons the Trump tariffs hurt the US
June 30 (UPI) -- China is reforming key industries to allow for greater foreign investment, according to state media. Xinhua reported the National Development and Reform Commission of the People's Republic of China said Sunday sectors including oil exploration and mining are to be deregulated for more foreign capital inflows. In its new "special management measures" addressing foreign investment, Beijing's reform commission said the number of foreign investment-related restrictions will decrease from 48 to 40 items. For foreign investment into free trade "experimental" zones, China has decreased the number of restrictions from 45 to 37 items, according to Xinhua. China refers to these restrictions as the "list of negatives." The list explicitly states specific bans in industries that are otherwise allowed to receive foreign capital inflows. RELATED Japan's Shinzo Abe raises Hong Kong freedom issue Significant changes include a state decision to eliminate all foreign investment … [Read more...] about China to ease limits on foreign investment in oil and gas
Beijing-based film-maker Jian Yi, now 43, clearly remembers the arrival of fresh milk in his life. It was an image of it, not the real thing. “It was the 1990s, and I first saw it in an advert on TV. The ad said explicitly that drinking milk would save the nation. It would make China stronger and better able to survive competition from other nations.” Like most ethnic Han, who make up about 95% of the population, Jian was congenitally lactose-intolerant, meaning milk was hard to digest. His parents did not consume dairy at all when they were growing up; China’s economy was closed to the global market and its own production very limited. Throughout the Mao era, milk was in short supply and rationed to those deemed to have a special need: infants and the elderly, athletes and party cadres above a certain grade. Through most of the imperial dynasties until the 20th century, milk was generally shunned as the slightly disgusting food of the barbarian invaders. Foreigners … [Read more...] about Can the world quench China’s bottomless thirst for milk?
Hong Kong (CNN)When Victor Gao was growing up in rural China in 1970s, cars and trucks were so rare he would chase them with the other children through the dirt roads, overjoyed by the strange sight. Today, China is the world's largest automobile manufacturer, with more than double the capacity of the United States. "I never expected that an ordinary Chinese family would own an automobile. I never expected China would be a major automobile manufacturing country," Gao told CNN. "It would be completely beyond my wildest dreams that China would produce more automobiles than the US." December 18 marks four decades since China kickstarted a process which would transform it from a poverty-ridden country into an economic superpower. Read More This era of massive change is known broadly as "Reform and Opening." A view of the Chinese city of Shenzhen in 1982 compared with today. When powerful Chinese politician and future leader Deng Xiaoping addressed the Communist Party … [Read more...] about China sparked an economic miracle — now there’s a fight over its legacy