Tag: china

U.S. Military Aid to Taiwan Draws Strong Criticism from China

There are problems in the Taiwan Strait because China doesn’t like the idea of the US giving Taiwan military help.

  • Biden agreed to give Taiwan millions of dollars in help and arms.
  • China says that U.S. actions are risking the security of the area.

What We Know So Far

China has been very angry about the latest U.S. weapons sales and help to Taiwan, which shows that tensions are still high in the Taiwan Strait.

U.S. President Joe Biden gave Taiwan $571 million for goods, services, and military training from the Defense Department on Saturday.

This comes after a different deal of military sales worth $295 million was announced on Friday.

China’s Foreign Ministry immediately criticized the action and urged the US to stop “arming Taiwan,” as well as cautioned against taking any actions that might endanger regional peace and security.

China says that Taiwan, an island with 23 million people and a democracy, is part of its property. The United States, on the other hand, backs Taiwan’s right to protect itself.

Putting the Deals Together

A deal of $571 million in aid comes just a few weeks after Biden approved another $567 million in aid in late September. These are the military sales:

  • $265 million for 300 radios for military use.
  • 16 gun racks for $30 million.

The Foreign Ministry of Taiwan praised the move and said that the U.S. would continue to support Taiwan’s security.

Why does this matter?

Tensions over Taiwan keep rising as the U.S. provides more help, even though China doesn’t like it. This brings up an important question:

What effect will these acts have on the relationship between the US and China?

  • It signals to the US that it is risking its reputation when dealing with Taiwan.
  • Taiwan thinks the help is very important for its safety and independence.
An ongoing act of balancing

The Taiwan Strait is still one of the most tense parts of diplomatic relations between the US and China.

Even though the U.S. doesn’t officially recognize Taiwan as a different country, it continues to put defense first as a way to keep Beijing from attacking.

With China’s armed threats against Taiwan getting stronger, the world is closely watching for any changes in policy or action.

In this very important strategic area, both sides seem to be constantly pushing each other to their limits.

China’s trade slows as exports drop and imports fall

China’s trade figures for November show decreasing exports and dropping imports, reflecting economic concerns and possible recovery attempts.

  • In November, China’s exports only grew by 6.7%, while its imports fell by 3.9%. This made the trade balance bigger.
  • Fiscal policies and changes made by exporters to deal with price risks should lead to better trade performance in the future. 

In November, China’s exports grew by only 6.7%, which was a big drop from October’s 12.7% rise. This showed that China’s trade performance was slowing down.

Analysts had expected an 8% rise, so this result was less than what they thought would happen. At the same time, imports went down by 3.9%, which shows that businesses and customers in the United States aren’t buying much.

Because of this, China’s trade gap grew to $97.4 billion, showing that exports and imports were not equal.

At the same time that this trade data came out, the Chinese government promised to loosen monetary policy to help the economy rebound from COVID-19. Donald Trump, the nominee for president of the United States, has said that he might put taxes of 60% or more on Chinese goods.

This could make it harder to fix the economy. Some experts are hopeful that the current losses will only last a short time, even though the housing market is still struggling and consumer spending is still low.

Exports may pick up in the coming months, thanks to more competitive prices and the belief that taxes will force exporters to change their tactics.

Zichun Huang from Capital Economics said that even though the amount of imports went down, they are likely to go back up because the government is spending more money, which should make more people want to buy industrial goods.

But consumer inflation was very low in November, at 0.2%. This was mostly because food prices were going down.

Despite the challenges, the National Bureau of Statistics reported a slight improvement in factory activity, with a rating of 50.3 for November, indicating growth for the second consecutive month.

This rise in production may be because companies are taking steps ahead of time to lessen the effects of taxes that are coming.

FAQ

What slowed down China’s export growth in November?

Less demand around the world and more competition made it harder for China to keep up its strong export performance.

How did imports do during the same time period?

China’s imports dropped by 3.9%, which shows that businesses and customers aren’t buying much at home because the economy is still unsure.

What does it mean that China has a trade surplus?

The trade balance means that exports were higher than imports. This shows that China is still dependent on markets outside of China, even though its own economy is having problems.

How might proposed U.S. tariffs affect China’s economy?

Proposed U.S. tariffs could change the way trade works, which could make it more expensive for Chinese exports and make it harder for the economy to recover.

What do experts think will happen with China’s trade in the next few months?

Analysts think that both exports and imports will go up again because of higher competitiveness, government spending, and changes made in response to taxes.

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