‘A trade war helps no one,’ China’s economy czar tells global forum

Stock price movements are displayed on a screen at a securities company in Beijing. Asian markets have plunged after Beijing’s warning of tariff measures against US goods. (AFP)
Updated 26 March 2018
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‘A trade war helps no one,’ China’s economy czar tells global forum

BEIJING: A top Chinese official warned on Sunday that a “trade war” would harm all sides, but gave no indication of Beijing’s possible next move in a spiraling dispute with President Donald Trump over steel and technology.
Speaking to global business leaders at a development forum, Vice Premier Han Zheng appealed for cooperation to make economic globalization “beneficial for all.”
“A trade war serves the interests of none,” said Han at the China Development Forum. “It will only lead to serious consequences and negative impact.”
Han didn’t mention Trump by name or refer directly to the dispute with Washington, but the country’s newly appointed economy czar warned on Saturday that Beijing will defend its interests. The government issued a $3 billion list on Friday of US goods, including pork and stainless steel pipes, it said might be hit by higher tariffs.
The Commerce Ministry said those charges were linked to Trump’s approval earlier of higher tariffs on steel and aluminum imports. But a bigger battle is brewing over Trump’s approval Thursday of a possible tariff hike on $30 billion of Chinese goods in response to what Washington says is Beijing’s improper acquisition of foreign technology.
Global financial markets have sunk on fears Chinese retaliation might prompt other governments to raise import barriers, depressing global trade.
Han appealed to other governments to “cooperate with each other like passengers in the same boat” and “make economic globalization more open, inclusive, balanced and beneficial for all.” However, he also emphasized that China’s income per person still is low, suggesting Beijing is unlikely to offer significant concessions to Washington.
Han repeated promises that planned Chinese market-opening would create new opportunities for foreign companies. Business groups have welcomed reform pledges, but complain Beijing is moving too slowly.
In a phone call on Saturday with US Treasury Secretary Steven Mnuchin, Vice Premier Liu He said Beijing is “ready and capable of defending its national interest and hopes both sides will remain rational,” according to the official Xinhua News Agency.
In a speech to the economic forum, Apple CEO Tim Cook acknowledged tensions in Western societies that fuel demands for import controls and said companies must spread the benefits of globalization more widely.
“Not everyone has benefited like all of us in this room have from technology and globalization, and we all must help to address this disparity,” said Cook, a co-chairman of the event. “Their cause must become our cause.”
The annual forum, which brings together corporate leaders with Chinese economic officials, is used to showcase Beijing’s plans. This year, those include ambitious promises to open financial markets, and give entrepreneurs and foreign companies a bigger role in China’s state-dominated economy.
Other business leaders at the event included IBM Corp. chairwoman Virginia Rometty, CEO Patrick Pouyanne of French oil giant Total SA, Bank of China Ltd. Chairman Chen Siqing and CEO Ulf Mark Schneider of Nestle SA. It also was attended by China’s newly appointed central bank governor, Yi Gang, and other Chinese economic leaders.
This year’s forum has been overshadowed by the growing rancor between Washington and Beijing over Trump’s efforts to redress what he says is an unfair trading relationship.
“The business community has always supported the idea that open markets foster new ideas and allow entrepreneurship to thrive,” said Cook. “The strongest companies and economies are those that are open — those that thrive on diversity of people and ideas.”
At a conference on “the challenge of global inequality” ahead of the economic forum, the CEO of asset manager BlackRock Inc. pointed to the fall in financial markets and appealed to the two governments to avoid a “public fight.”
“Dialogue and maybe some adjustment in trade and trade policy can be in order,” Laurence Fink said on Saturday.


Abu Dhabi aims to lure start-ups with investment in new technology hub

Updated 24 March 2019
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Abu Dhabi aims to lure start-ups with investment in new technology hub

  • The initiative will help Abu Dhabi reduce reliance on oil
  • Mubadala hopes to attract Chinese and Indian companies

ABU DHABI: Abu Dhabi will commit up to $272 million to support technology start-ups, it said on Sunday, in a dedicated hub as part of efforts to diversify its economy.

US tech giant Microsoft will be a strategic partner, providing technology and cloud services to the businesses that join the hub as the capital of the United Arab Emirates continues its push to reduce reliance on oil revenue.
Abu Dhabi derives about 50 percent of its real gross domestic product and about 90 percent of central government revenue from the hydrocarbon sector, according to ratings agency S&P.
The emirate launched a $13.6 billion stimulus fund, Ghadan 21, in September last year to accelerate economic growth. Ghadan means tomorrow in Arabic. The new initiative, named Hub 71, is linked to Ghadan will also involve the launch of a $136 million fund to invest in start-ups, said Ibrahim Ajami, head of Mubadala Ventures, the technology arm of Mubadala Investment Co.
The goal is to have 100 companies over the next three to five years, Ajami said. “The market opportunities in this region are immense,” he added.
Mubadala, with assets of $225 billion and a big investor in tech companies, will act as the driver of the hub, located in the emirate’s financial district.
Softbank will be active in the hub and support the expansion of companies in which it has invested, Ajami said, adding that Mubadala is also aiming to attract Chinese and Indian companies, among others.
Mubadala which has committed $15 billion to the Softbank Vision Fund, plans to launch a $400 million fund to invest in leading European technology companies.
Incentives mapped out by the government include housing, office space and health insurance as part of the $272 million commitment, Ajami said.
Abu Dhabi will also announce a new research and development initiative on Monday linked to the Ghadan 21 plan, according to an invitation sent to journalists.