Overseas Headlines – November 9, 2020

United States:

Biden Gets Muted Reaction in China With Trump-Era Rift to Endure

“Unlike Donald Trump, whom Chinese officials had little knowledge of before he took office, Joe Biden is well known in Beijing. But that history is unlikely to quickly repair a relationship between the global powers that has fundamentally changed over the past four years. China’s official reaction to Biden’s election victory has been relatively muted, with no public congratulations from President Xi Jinping. The Chinese Ministry of Foreign Affairs gave mostly vague answers at a daily briefing on Monday, saying that it hoped the new administration would “work in the same direction as us going forward” — but sidestepping questions about the trade deal, what tangible moves China expected from Biden and Beijing’s stance on relations with the U.S.”



Germany Considers Delaying a $4 Billion Tariff Strike on the U.S.

“Germany is seeking to mend transatlantic trade relations and is mulling a more conciliatory approach that would see the European Union delay tariffs set to hit $4 billion of American products as soon as Tuesday, according to a senior official familiar with the government’s thinking. Germany will raise the issue on Monday at a meeting of the EU’s trade ministers, where Berlin will support rekindling the bloc’s relationship with the U.S. rather than escalating the 16-year-old trade conflict, which is over illegal subsidies provided to Boeing Co. and rival Airbus SE, said the official, who asked not to be identified because the discussions are private. The European Commission, which will make the decision on the duties, stands by the tariffs.”



China Starts Talking Stimulus Exit Again as Economy Recovers

“China’s central bank once again raised the topic of exiting its monetary easing policies, in sharp contrast to the U.S. and Europe, where a resurgence in virus cases has forced governments there to consider more stimulus. Policy makers globally are discussing the timing of stimulus withdrawal, and the consensus is that it should be done sooner rather than later, Liu Guoqiang, vice governor of the People’s Bank of China, said Friday. “Exit is a matter of time and it is also necessary,” he said. “But the timing and method of exit need to be carefully evaluated, mainly based on the status of economic recovery.”




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