Mainland Intends To Reduce Taiwan-korea Semiconductor Orders

The  Sino-U.S. trade war has been raging. In the past week, the two  countries have been involved in each other’s actions and their words  have not been conceded. The  latest report by the Financial Times yesterday pointed out that China  has proposed to the United States to expand its purchase of  semiconductors from the United States. China will transfer some of its  orders to the Taiwan region and South Korea for semiconductor purchases  to the United States to reduce its huge trade surplus with the United  States. The "Wall Street Journal" pointed out on the 26th that the two sides  have quietly initiated negotiations in private. U.S. Finance Minister  Mukhin intends to go to Beijing to negotiate in person. The Chinese said  that "the door to dialogue is always open," but he did not respond  positively to whether Muchin was invited to visit Lu.


U.S. Semiconductor shares staged celebrations


Last year, mainland China imported about 2.6 billion U.S. dollars worth of semiconductor products from the United States. The  United States has not responded to the proposal from mainland China.  However, on the 26th, the US semiconductor stocks led by this bullish  market have staged celebrations. Intel and NVIDIA stock prices have  risen more than 3%, and Qualcomm has also risen more than 2%. The Sino-US trade war situation is expected to slow down, inspiring the Dow Jones Industrial Index to open up 400 points.


The  Wall Street Journal reported that Deputy Prime Minister Liu He, the  helm of the Chinese mainland’s economy, negotiated on behalf of the  Chinese side in Beijing. Muchin and U.S. trade representative Lettiezah  negotiated on behalf of the United States in Washington to discuss how  China’s mainland has further opened markets to the United States. The  scope covers Financial services to manufacturing and other fields.


The  report quoted a person familiar with the matter as saying that Muchin  and Letitzer sent a letter to Liu He last week, listing in the letter  the measures that the Trump administration hoped China would adopt,  including reducing tariffs on U.S. import cars, increasing purchases of  U.S. semiconductor products, and The company further opened up the financial industry. "Financial Times" disclosed that officials in mainland China hope to  accelerate their pace and finalize the latest financial regulations  ahead of May, allowing foreign financial groups to hold more than half  equity in Chinese brokerage companies. The original schedule was the end  of June.


Treasurer Mukhin intends to go to Beijing for consultation


The  "Wall Street Journal" mentioned that Muchin said "I hope to reach an  agreement that China is also fair" and is considering to go to Beijing  to advance relevant negotiations. Muchin  and Liu He also telephoned on the 24th, according to a spokesman for  the U.S. Treasury Department, who discussed how to reduce the U.S. trade  deficit. Xinhua News Agency stated that Liu He told Muqin that the  investigation by the United States violated international trade rules  and that China would safeguard its own interests.


Muqin  said in an exclusive interview on the 25th that Trump said that adding  tariffs to China’s imports of 60 billion U.S. dollars is not a bluff.  "We are in the process of starting." He added that the United States is  negotiating with China. Muchin stressed: "As the President said, the trade deficit between the  two sides should be reduced by 100 billion U.S. dollars. I am  cautiously optimistic about the possibility of reaching an agreement. If  we cannot, we will start taxation. We will not shelve it."


Earlier  on the 25th, Burton, who was about to become the National Security  Advisor of the White House, and Kudlow, the new chairman of the National  Economic Council, also expressed their hard-line stance on the possible  trade war that will erupt. Bolton also described the introduction of tariffs on imported goods from the mainland as a "shock therapy."