China’s Foreign Ministry said Monday that trade talks with the United States are impossible under current conditions.

The comment from spokesman Geng Shuang during a briefing with reporters came a day after U.S. President Donald Trump predicted there would be a resolution of the U.S.-China standoff on tariffs on hundreds of billions of dollars of goods the world’s two biggest economies are threatening to impose on each other.

“China will take down its Trade Barriers because it is the right thing to do,” Trump said, without offering any direct information. “Taxes will become Reciprocal & a deal will be made on Intellectual Property. Great future for both countries!”

Regardless, Trump said that he and Chinese President Xi Jinping “will always be friends, no matter what happens with our dispute on trade.”

The threats Washington and Beijing have lobbed at each other in recent days have rattled world stock markets, with wide swings of hundreds of points in stock indexes.

U.S. stocks plunged more than 2 percent Friday after Trump threatened to impose tariffs on an additional $100 billion worth of Chinese goods beyond the $50 billion worth of products he had already said would be affected.

Beijing responded in kind, saying it would impose tariffs on U.S. goods “until the end at any cost.”

Both countries have published lists of goods they intend to tax, with the U.S. hitting steel and aluminum imports from China, along with aerospace, tech and machinery goods. Other levies would target medical equipment, medicine and educational materials.

China said it would impose tariffs on more than 100 U.S. products, including soybeans, wheat, corn, beef, tobacco, vehicles, plastic products and an array of other items.

U.S. Treasury Secretary Steven Mnuchin told CBS News that the threat of higher tariffs posed the risk of a trade war but that he does not expect one to materialize.

“Our expectation is that we don’t think there will be a trade war. Our objective is to continue to have discussions with China. I don’t expect there will be a trade war. It could be, but I don’t expect it at all,” he said.

Mnuchin said that Trump and Xi have a “very close relationship” and that the two countries would continue to discuss trade issues.

A key U.S. lawmaker, Republican Sen. Lindsey Graham of South Carolina, told ABC News, that U.S. businesses and consumers could inevitably be hurt if China imposes tariffs on U.S. products.

“There is no way for us to address China without absorbing some pain here,” Graham said. “To those who believe that China is cheating, what idea do you have better than Trump?”

Gary Hufbauer, a senior fellow at the Washington-based Peterson Institute for International Economics, told VOA that Trump and his top administration officials recognize that the tariffs from both sides would be “very damaging to both economies.”

“The short-term impact would be highly adverse,” he said. “Both sides have a lot to gain by negotiations rather than actually implementing a tariff war.”
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Russia said Monday it will support companies hit by fresh U.S. sanctions as Russian stocks dropped and shares in aluminum producer Rusal plummeted.

Deputy Prime Minister Arkady Dvorkovich said in comments reported by state news agencies that Russia is prepared to back the companies if their positions worsen.

“We have a very attentive approach to our leading companies. They mean thousands of employees and very important jobs for our country,” he was quoted as saying by the TASS agency.

Shares in Rusal, which is controlled by billionaire businessman Oleg Deripaska, plunged just over 50 percent on the Hong Kong stock exchange Monday.

Rusal said the sanctions “may result in technical defaults in relation to certain credit obligations.”

“The company’s initial assessment is that it is highly likely that the impact may be materially adverse to the business and prospects of the group,” Rusal said in a statement.

Deripaska controls a business empire with assets in aluminum, energy and construction. He has figured in Russian election-meddling investigations in the U.S. due to his ties to former Donald Trump campaign chairman Paul Manafort, who once worked as his consultant. The 55-year-old Deripaska is worth $5.3 billion, according to Forbes magazine.

On the Moscow stock exchange, the flagship MOEX index traded down over 6.5 percent as of early Monday afternoon, having partially recovered from a steeper slump which took the index down almost 10 percent. Metals companies were among the main losers.

The euro traded above 73 rubles for the first time since September 2016, while the dollar neared the 60-ruble mark.

The U.S. Treasury Department on Friday announced sanctions against seven leading Russian businessmen, 17 officials and a dozen Russian companies.

Besides Deripaska, targets included Alexei Miller, the head of state natural gas giant Gazprom, and Andrey Kostin, the head of the state-controlled VTB Bank, which is Russia’s second-largest.

There was also a place on the list for Kirill Shamalov, who is reportedly Putin’s son-in-law, married to his daughter Katerina Tikhonova, although neither Putin nor the Kremlin have acknowledged that she is his daughter. In 2014, Shamalov acquired a large share of Russian petrochemical company Sibur, later selling most of his stake for an undisclosed sum.
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U.S. President Donald Trump predicted Sunday there would be a resolution of the U.S.-China standoff on tariffs on hundreds of billions of dollars of goods the world’s two biggest economies are threatening to impose on each other.

The U.S. leader said, without offering any direct information, that “China will take down its Trade Barriers because it is the right thing to do.”

Trump said that “taxes will become Reciprocal & a deal will be made on Intellectual Property. Great future for both countries!”

Regardless, Trump said that he and Chinese President Xi Jinping “will always be friends, no matter what happens with our dispute on trade.”

The threats Washington and Beijing have lobbed at each other in recent days have rattled world stock markets, with wide swings of hundreds of points in stock indexes.

U.S. stocks plunged more than 2 percent Friday after Trump threatened to impose tariffs on an additional $100 billion worth of Chinese goods beyond the $50 billion worth of products he had already said would be affected.

Beijing responded in kind, saying it would impose tariffs on U.S. goods “until the end at any cost.”

Both countries have published lists of goods they intend to tax, with the U.S. hitting steel and aluminum imports from China, along with aerospace, tech and machinery goods. Other levies would target medical equipment, medicine and educational materials.

China said it would impose tariffs on more than 100 U.S. products, including soybeans, wheat, corn, beef, tobacco, vehicles, plastic products and an array of other items.

U.S. Treasury Secretary Steven Mnuchin told CBS News that the threat of higher tariffs posed the risk of a trade war but that he does not expect one to materialize.

“Our expectation is that we don’t think there will be a trade war. Our objective is to continue to have discussions with China. I don’t expect there will be a trade war. It could be, but I don’t expect it at all,” he said.

Mnuchin said that Trump and Xi have a “very close relationship” and that the two countries would continue to discuss trade issues.

A key U.S. lawmaker, Republican Sen. Lindsey Graham of South Carolina, told ABC News, that U.S. businesses and consumers could inevitably be hurt if China imposes tariffs on U.S. products.

“There is no way for us to address China without absorbing some pain here,” Graham said. “To those who believe that China is cheating, what idea do you have better than Trump?”
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Taiwan says it regrets that the “one China” policy insisted on by Beijing prevents it from providing much needed development aid to most countries in Africa.

Taiwan was in a relatively good diplomatic position in Africa several years ago. Taiwan’s Deputy Secretary-General for International Cooperation and Development, Pai-po Lee, says this made it possible for those countries that had diplomatic relations with Taiwan to benefit from his agency’s aid projects.

“Previously, we have over nine countries with Taiwan. For instance, Senegal, the Gambia, Chad, Niger, Liberia, Central Africa — also Sao Tome Principe… Six years ago, they still have relations with Taiwan. But, then they shifted to China,” said Pai-po Lee.

Lee says Taiwan had invested a lot in the African region. But, all that is now in the past. He says Taiwan currently maintains diplomatic relations with only two countries — Burkina Faso and Swaziland.

He says Taiwan has been running productive agricultural and livestock, as well as vocational and medical programs in Swaziland since 1975.

As for Burkina Faso, he says a successful irrigation project on the Kou River, which was started in 1967, ended in 1973. That was when Burkina Faso broke off relations with Taiwan in favor of China.

But Lee tells VOA Burkina Faso restored ties with Taiwan in 1994. He suggests the lure of billions of dollars in Chinese aid was not strong enough to keep this impoverished country within Beijing’s diplomatic orbit.

“It is… coming from the Burkina Faso people. To think about the 1967 in Kou River, this 1967. They had quite a good memory of that… So, the people urged the government to restore the relations with Taiwan. So, that pressure comes from the people,” said Lee.

Since resuming development work in Burkina Faso, the Taiwanese development official says the country’s irrigation system has been expanded. He says a program is ongoing to train local nurses and medical doctors and an infant and maternal health program is having great success in reducing both maternal and infant deaths.

This story was written by VOA’s Lisa Schlein

 
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The U.N. secretary-general and the Singaporean foreign minister voiced concerns about global trade tensions and rising protectionism during back-to-back meetings in Beijing on Sunday.

Following remarks from his Chinese counterpart, Singaporean Foreign Minister Vivian Balakrishnan vowed to “double-down” on free trade and economic liberalization in tandem with China.

“This is a time in the world where the temptation to embark on unilateralism and protectionism is unfortunately rising,” Balakrishnan said.

In a separate meeting, Secretary-General Antonio Guterres called China “absolutely crucial” in the international system.

“You mentioned reform and opening up — it’s so important in a moment when some others have a policy of closing up,” Guterres told Chinese Foreign Minister Wang Yi.

“The solutions for these problems are not to put globalization to question, but to improve globalization. Not isolation or protectionism, but more international cooperation,” Guterres said.

The comments came as China and the U.S. exchanged escalating tariff threats in what is already shaping up to be the biggest trade battle for more than a half century.

Beijing vowed Friday to “counterattack with great strength” if President Donald Trump follows through on threats to impose tariffs on an additional $100 billion in Chinese goods.

Trump’s announcement followed China’s decision to tax $50 billion in American products, including soybeans and small aircraft, in response to a U.S. move this week to impose tariffs on $50 billion in Chinese goods.

The U.S. bought more than $500 billion in goods from China last year and now is planning or considering penalties on some $150 billion of those imports. The U.S. sold about $130 billion in goods to China in 2017 and faces a potentially devastating hit to its market there if China responds in kind.

In the meetings, Wang attacked what he called “protectionism and unilateralism,” though he didn’t single out the U.S. by name.

“China will safeguard the principles of free trade and oppose protectionism,” Wang said. “We should push forward with economic globalization.”

Wang was welcoming both officials ahead of their planned appearances at the annual Boao Forum for Asia, a Chinese-sponsored annual gathering for political and economic elites on tropical Hainan Island.

Guterres will meet President Xi Jinping later Sunday and also plans to visit the China Peacekeeping Police Training Center.

Balakrishnan is traveling with Singaporean Prime Minister Lee Hsien Loong on the first of a five-day visit to China.

This story was written by the Associated Press

 
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Some 30 percent of Air France flights were cancelled Saturday as strikes over pay rises appear to be intensifying.

And that’s just part of France’s travel troubles this month. Most French trains will screech to a halt as a strike over President Emmanuel Macron’s economic reforms resumes Saturday night – a strike that is set to last through Monday.

Screens at Paris’ Charles de Gaulle Airport showed red “cancelled” notes next to multiple flights Saturday, as families around France and Europe headed off on spring vacations.

The one-day Air France walkout is affecting international and domestic travel, notably a quarter of flights at Paris’ Charles de Gaulle and Orly airports. Air France is urging passengers to check the status of their flights before coming to the airport and offering to change tickets for free.

It’s the fifth Air France strike since February, and the number of cancelled flights is rising. Unions this week announced more strikes this month to coincide with national rail walkouts.

Air France unions want 6 percent pay raises after years of salary freezes. Air France is offering 1 percent raises, saying anything higher will hurt its turnaround efforts.

The strikes have been costing Air France some 20 million euros ($24.6 million) a day and have hurt its share price.

Meanwhile, the SNCF national railway announced that 80 percent of high speed trains and two-thirds of regional trains will be canceled starting Saturday night as unions stage another two-day walkout.

About a quarter of Eurostar trains to London will be cancelled, and no trains were expected to run at all to Switzerland, Spain or Italy.

It’s part of three months of rolling train strikes seen as the biggest challenge to Macron since he took office last year. Rail unions are angry at plans by Macron’s government to abolish a generous benefits system that gives train workers jobs for life.

Both the government and unions are holding firm despite continuing negotiations. France prides itself on its railways, seen as a pillar of public service.

Macron argues that the special status for train workers is no longer tenable in a globalized and increasingly automated economy. It’s part of his broader plans to overhaul the French economy to make it more competitive.
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