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Xi Jinping Tariff Negotiating Strategy with US Articles

LyrArc brings in selected articles from many of the world's top publications.

Articles are selected by experts and you can see the gist of the important articles.


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National Security Adviser Bolton says U.S. withdrawal from Syria depends on a number of factors, after president Trump qualified his earlier statement on withdrawal. 

Washington Post Original article ›
Washington Post Original article ›
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As the state of California changes governors from Jerry Brown to Gavin Newsom, both Democrats, there is a sense of continuity as both come from families that have deep connections going back to Jerry Brown's father Pat Brown, also a former governor of the state. This comes with a change of style between the conservative Brown who espouses social justice and careful spending after battling deficits, with the ambitious Newsom who is pushing for many social programs including universal health coverage that have wide support in the state, and can be funded with the $30 billion surplus Jerry Brown handed to his successor. Under Newsom California is also seen as a state that has a different vision of the future than president Trump. 

This comes at a time when California has become more expensive to live in, less and less affordable, with inequalities aggravated by the tech boom.

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Governor Jerry Brown of California retires to an isolated family ranch in Colusa County, an hours drive northwest of Sacramento, the state capital. He is the longest tenured and oldest governor of the state, having held the office when he was younger and then coming back years later to be governor again after becoming Mayor of Oakland. His father was also a famous governor of the state. 

His values of embracing community almost to the point of being tribal were evident in his long years in office. His three years spent at a Jesuit seminary before going to law school also shaped his life. Brown was opposed to embellishment, living in a sort of ascetic way, and was also opposed to a cult of personality. Upto the point that he refused to sign autographs as governor.

Here Miriam Pawell who written a book on the Brown family and how it changed California for the better, looks at the life, times and character of Jerry Brown.

NYTimes.com Original article ›
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Added sugar is the big culprit in the way we age, and in our general health, the diseases we get. This is not just about obesity, its about metabolic health- getting only the amount of sugar that is good for us. Unknowingly if we are not careful, not checking labels and without any advantage we end up taking added sugar when we eat packaged foods. About 70% of packaged foods contain this added sugar. Most adults in the U.S. and other countries get 17 teaspoons of added sugar a day or twice the 9 teaspoons that is recommended for men and three times the 6 teaspoons a day recommended for women. For children the recommended limit is 3 teaspoons. Just by being a bit careful and removing this added sugar from our diet we can enjoy much better health. It is not giving us much because we can still have some sugar in healthy natural foods, in fruits and vegetables, and a smaller amount of plain sugar. After the first couple of days of a change one may not even notice this. By so much has our sugar intake grown particularly with packaged foods, that a small change can bring big results in health and healthy living style. ...
WSJ Original article ›
New York Times Original article ›
New York Times Original article ›
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New pictures from China's moon mission Chang'e-4.

WSJ Original article ›
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Global smartphone shipment sales are dropping with sticker shock over new smartphone prices, dropping 7% worldwide, and 15% in China in third quarter 2018, according to Canalys. Apple sales have stagnated in China at 8% market share, and shipments volumes have declined by 11% in 2018. Apple gets 20% of its sales revenue from China. Apple is now in fifth place behind Huawei, Oppo, Vivo, Xiaomi in China. Each of the Chinese brands gained from 2 to 5% increase in market share while Apple with its high pricing has stagnated. Apple had high hopes for the Apple XR priced at $945 and ordered large volume of the phone for sale in China. It now has excess unsold inventory of that phone as Chinese competitors with prices at little over half the Apple price the Huawei Mate 20 are proving to be strong competitors. The fact that the Chinese market has declined by 15% in smartphone shipments hurts Apple, even though trade tensions have not created anti-Apple sentiment.   ...
WSJ Original article ›
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Retail sales in China dropped sharply. Retail sales dropped from double digit increases for most of 2014-2017 to single digits in 2018- sales dropping to 8.1%. Government restrictions to prevent a housing bubble restrained housing sales, and policies to control corporate debt limited growth. Higher inflation for food and housing, have led to asharp pullback in growth of consumer spending.  Trade tensions with the U.S. have hurt consumer sentiment. The feeling that China's growth would stabilize because of its connections to the world economy is fading as consumers see persistent trade tensions with the U.S. including tariffs of upto 60% in tit for tat actions as hurting China's prospects.  The GDP growth is expected to be about 6.5% for 2018 according to government estimates, which experts say is actually much less or even half that as exporters retrench in the face of slack demand in China and lower sales to the U.S.  Rail and other infrastructure projects that were considered unsuitable are now being given approval in efforts to boost the economy. More tax cuts and expanded deficit spending are policies likely to be followed.  At foreign companies no overtime, and job cuts are commonplace especially in the auto industry. ...
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The landing of the lunar probe Chang'e-4  on January 2, 2019 makes China the first country to land a probe on the far side of the moon. This follows a landing by Chang'e-3 lunar probe in 2013. A followup mission Chang'e-5 in Dec. 2019 will collect samples of the moon's surface and send them back to earth. The goal is to build a lunar base by 2025 and man the facility by 2030, and in the long run mine the moon for energy resources.  The U.S. space program  has lacked the steady commitment and vision needed to put astronauts on the moon for a second time, and is now being given a fresh boost for challenges ahead.

WSJ Original article ›
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Though the numbers are relatively small about 450 migrants crossing in small boats to Britain, the strong response shows the political sensitivity to border crossing in Britain. Britain called on the Royal Navy to patrol the waters in the English Channel. This comes at a time when the issue of Brexit is dividing Britons. The Brexit referendum Leave vote benefitted from pictures of the migrant crossings into Europe from the Mediterranean. Placed on buses these posters were very effective in promoting the Leave campaign, even though at the time  the migration shown taking place was not into Britain but on the borders of Turkey, Greece, Hungary and Germany. 

 

WSJ Original article ›
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Sharply lower consumer spending is hurting Apple sales in China. Apple cut sales and issued a sales warning in January 2019. This follows Apple's sharp slowdown in India with its uncompetitive pricing.

Retail sales growth in China- which bounced back in previous downturns- dropped to the lowest level in 15 years in November 2018. Auto sales are down with the sharpest drop in 7 years- the first annual drop in sales since 1990. Fears of a housing bubble have led to restrictions on home purchases for speculation which have not been lifted. Income tax reduction has not increased spending. GDP growth for the fourth quarter dropped to 6.4%.

Further signs of a sharp pullback are seen in the drop in consumption tax revenue falling by 61% in October and 71% in November 2018. The consumption tax is placed on cars, gasoline and luxury goods, and is paid by the companies making the products.

WSJ Original article ›
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Brazil's new president Jair Bolsonaro issued presidential decrees for a money saving cut in the number of ministries, moves to help the agricultural sector, and announced the government would not spend more than it takes in to cut the budget deficit after years of rampant state spending. Paulo Guedes, who takes charge of the combined planning, finance, and industry ministries, said that the biggest challenge remains in pension reform. Brazil has lax pension rules allowing for early retirement, generating a deficit projected at $57 billion in 2019.

The Economist Original article ›
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The lack of a formal constitution in Britain means that a lot depends on politicians in parliament acting like good chaps, says Economist magazine. With the divisions over Brexit in both parties the political norms and self-restraint of an earlier period are lacking. As a result informal rules of conduct, and other conventions are being ignored, norms of British politics have collapsed with the situation created by the Brexit referendum vote. In another essay shown on this page the Economist points out that the chumocracy under Cameron gambled the future of Britain on a major issue with a simple 51% and you are out of EU vote, when even less momentous issues are decided in two stage process and super majority required.

The Economist Original article ›
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The Economist magazine looks at the mess that Brexit has become and reflects on what this means. The first explanation is that Britons always loathed the evolution of the common market into the European Union. The second that Brexit was simply a result of a simmering civil war between the successful metropolitan  liberal parts of Britain and the provincial conservative parts of Britain. A third one is seen as equally plausible that the country's leadership has failed, that its model of leadership is coming apart.  It says the problem is the chumocracy with David Cameron made the poor decision to go for a referendum on the EU without thinking this through carefully, taking risks with the future of Britain for the sake of narrow party interests. 51% and you are out of the EU was never a fair option when major decisions of such type are handled with great care, even confronted with less momentous decisions other countries use two stage votes or call for super majorities. Basically the whole referendum was flawed to begin with and the people making the decision gambled with the future of Britain and the British economy.  The Economist magazine says the current candidates for Tory leadership, are all inadequate, one even suggesting that Britain should not balk at leaving the EU with no deal because it would create a temporary shortage of Mars bars. It looks at the leaders class in Britain as says it preserves many of the failures of the old establishment by being introverted and self-serving. It sees less expertise and more bluff in their backgrounds in public relations, journalism (Cameron, Johnson) and lighter experience (May as analyst), and sees a singular lack of self restraint because it believes it comes out merit based selection compared to the old establishment. What the Economist magazine sees is meritocracy transformed into crony capitalism for Blair in Labour party and Cameron, Osborne in the Conservative Party. One of the problems it says is the erosion of other ways to enter the leadership ranks from a range of places- business, unions, local government, working class talent, and other places- something that existed in the early postwar years to the sixties. Gradually a shift is taking place already to create new options and broaden the places from which leaders can emerge for broader more effective selection. ...
BBC News Original article ›
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The new president of Brazil, Jair Bolsonaro, says in his inaugural speech that he wants a national pact to free Brazil of corruption, crime and economic mismanagement. And also of ideology.

After being elected Bolsonaro picked Brazil's famous anti-corruption judge, Segio Moro, as his minister of justice. Moro was involved in the investigation called the Car Wash that looked into the state owned oil company of Brazil.

The Economist Original article ›
LyrArc Article Gist
What were the stories in the Economist magazine that were the most read stories of 2019? Not on president Trump. On Malaysia, China under Jinping, and exodus from San Francisco and Silicon Valley. The most read article was on the newly elected president of Brazil, Jair Bolsonaro. The mismanagement of the economy particularly extravagant state spending on the Olympics and soccer stadiums for the World Cup at the expense of basic sanitation services, bus and transport services, health services, led to the result of a majority of Brazilians rejecting the Workers Party and its leader former president Lula. Unfortunately most of the media including the Economist did not draw attention to this gap. During a period in which income from mining with export of iron ore, and soyabeans to China, enabled Brazil to live beyond its means, there was no effort to draw attention to glaring gaps in development of public services such as sanitation, bus services and transport, lack of building infrastructure other than to support mining. Glaring gaps in education and health services made the situation worse. The second most read piece in the Economist  was on March 10th- Malaysia's PM is about to steal an election. Here the Economist magazine joined the Wall Street Journal which originally broke the story on the 1MDB fund and irregularities in Malaysia where a development fund was misused by the government. Najib actually lost that election and the WSJ covered the story of the developments that followed in which Malaysia's new governemnt led by a returning former prime minister in his nineties Mahathir Mohammed, ousted his own protege Mr. Najib.  The third most read piece in the Economist magazine was - How the West got China Wrong.  Unfortunately the Economist magazine and most of the media covered China in the two decade long boom years without covering the other emerging story as well in which Mr. Lighthizer (now president Trump's top trade adviser) and others questioned the huge unsustainable trade surpluses in U.S. trade with China. With the economy facing huge downside risks and rising trade tensions with the U.S. Chinese president Jinping's move to remove the limit on terms in office in the Constitution was considered a shift from the notion that China was likely to turn into a democracy. Mr. Jinping had already completed his first term in office and the anti-corruption campaign, managing the economic boom for a soft landing, was carried out with the central leadership of the party, after the destabilization evident in the early part of Xi Jinping's first term. Much of China's path was predictable and rational behaviour in its national interest, what was not clearly defined or defended was the way the U.S. could sustain the trade deficits that had reached a billion dollars a day. Leading to Mr. Trump seizing on this as an election issue to form a bloc of voters separate from the two main parties, the Republicans and the Democrats. The fifth most read piece was on Oct 11, 2018- the next recession. It pointed out that with low interest rates central banks in the U.S. and Europe and America could not cope effectively with a recession. The sixth most read piece was on June 29, 2018- Bullshit jobs and the yoke of managerial feudalism. It cited Prof. David Graeber of the London School of Economics, who wrote a short essay that went viral on the prevalence of work that had no social or economic reason to exist, work he called "bullshit jobs". Graeber said people want to feel they are transforming the world around them in a way that is leading to a positive difference. No. 7, 8, 9, were on Bitcoin, Netflix and programming language Python. No. 10 most read was on Aug. 30, 2018- Why startups are leaving Silicon Valley. It showed that in 2017 more people left the county of San Francisco than entered. The main reason the cost of living was burdensome and out of control. As Amazon shifts attention to India and Brazil, and Apple pulls back from India, social media companies coming under fire for disinformation, this period of Tech is making way for a shift in a new direction. A direction that focuses on people's lives, wages, spending on much needed infrastructure and services. ...
The Hindu Original article ›

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