L I M I T E D April Edition vol 1 / 24 April 2019
XI JINPING
E D I T I O N
VAGUE TIMES The Rise of OB
CYBER SECURITY: EFFECTS ON ECONOMY IN CHINA AND ASEAN
PROMISING FUTURE?
AS A NEW STARTEGY ECONOMY IN EAST ASIAN
China Hegemony
Chinese Healthcare Systems and What We Should Expect
CHINA
AS A NEW RISING POWER IN EAST ASIA
On trade in East Asia
TRADE WAR : CHINA - US
wRitERs Theresa
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Salma Paramesti
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Savira Nurulita
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wRitERs Ary Nugroho
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M. Eriz Luthfitama
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TABLE OF
China Hegemony: On trade in East Asia
The Rise of OBOR as a New Strategy Economy in East Asian
TRADE WAR : CHINA - US
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contents 6
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PROMISING FUTURE? Chinese Healthcare Systems and What We Should Expect
CYBER SECURITY: Effect on Economy in China and ASEAN
APRIL 2019| VOLUME NO. 1
CHINA HEGEMONY ON TRADE IN EAST ASIA Theresa
O
ver the last decades, the world economy
has slowly changed especially for China economy. The rising of China from poor developing country to second largest economic power in the world has been amazing. The rise of China influenced the economy around the world. Based on the statistic, showed that China GDP increased dramatically from 1980 to 2018.
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The fast growing economy of China is engine of Asia’s economic growth and has spread its influence over the East Asia. The change of China economy magnitude has pushed China’s economy and political power. It has also stimulated China’s internal economic evolution, which was also contributed to major growth in private sector. The sign of the rise of the private sector is evolution of China’s export. In here emphasized China as hegemon in East Asia by trade. First, in the ASEAN Scope, nowadays China as a major sources of exports and imports that are trending among the ASEAN members as a trading partner. ASEAN is a pillar of the postwar order in the East Asia and established in 1967. Since 1997, China have developed special relationship with ASEAN. In 2004 China signed an agreement on Trading in Goods of the Framework Agreement on Comprehensive Economic Cooperation with ASEAN. The top four external trading partners accounted for more than 41% of ASEAN trade, one of them is China.
China has the greatest share that surpassed the U.S. in 2008 and Japan in 2009. Since 2009, China has been ASEAN’s largest trading partner with average growth rate 21.6%. Based on ASEAN statistic showed that in 2012 China’s trade value growth has increased. And until now China’s total trade figures are still high compared to others. Before entering any assessment of China’s economic objective. It necessary to provide the definition of “hegemony” itself. Hegemony is a situation where there is a single great power in its region. An assessment of China’s economy based on statistic showed that China is clearly hegemon on trade in ASEAN. Based on ASEAN statistic, China’s total trade in 2015 is 345,764.2, compared to EU 28 is 227,640.2 and United States is 212,343.0. The rise of China to become economic hegemony—making new geopolitical claims in the region and seeking to established itself as a regional leader.
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Not only that, Second in the East Asia (Japan & South Korea) scope. The transformation of China in East Asia already proved that, today China is probably the most dynamic country in the world in economic, political and security terms. With the unstoppable economic power in the East Asia, China become an important main character in trading partners that other countries sought. One of them is Japan.
In 2017 based on statistic, figure 1 showed that China as the top export destination with total $136B than other countries. At the same time, figure 2 also showed that China as top import origins of Japan with total $157B.
Japan has been in a long relationship with China. Relationship with China bring luck to Japan. Recorded in 2002, Japan’s imports from China are growing very rapidly, imports from China recorded reaching 9.9% growth. At the same time in 2002 made China as Japan’s largest import partner. Japan’s imports from China has surpassed those from ASEAN (Indonesia, Malaysia, Philippines, and Thailand) in 1991. Japan’s import from China amounted for 18,3% of its total trade in 2002. In 2002, Japan’s export to China also expanded substantially and recorded 32,3 % growth. Until now, China still as the largest trading partner with Japan.
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Switch to South Korea. The economic relationship between China and South Korea is very complex and dynamic. Since Korean diplomatic normalization with China. The interdependency between South Korea and China has rapidly increased in recent years. China has quickly become a main economy partner to the Korean economy. As example China has become the biggest exporting and importing country for South Korea in 2005.
China as a new rising power in East Asia— the wealthier and stronger China becomes, the larger the perceptual disparity may grow between China and its regional neighbors. From trade statistic above, clearly described that today China has hegemony in East Asia, who conquered United States. The rise of China has greatly impacted regional neighbors economy and the world economy. China’s rise was not a threat, however is about challenge, opportunity and mutual benefits.
Korea’s import from China amounted $86.4B in 2011 , occupying 16.5 % of total Korean imports and followed by Japan, United States, Saudi Arabia and Australia. And at the same time, Korea’s export to China amounted $134.2B, occupying 24.1% of total Korean trade. Again and again, China as a new hegemony in East Asia bring luck to regional neighbors. Korea’s bilateral trade with China was $220.6B , which amounted to 20.4% of total trade in 2011. As we can see from the statistic, in 2004 until 2011, Korea’s trade with China continues to grow rapidly. In 2017 China still as a top trading partners for Korea.
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PROMISING FUTURE?
Chinese Healthcare Systems and What We Should Expect
Healthcare systems have been one of the many issues developing countries inclusive of those in East Asia still struggle with to this day. China’s standards in particular have been growing rapidly since the 1960s, but will their efforts be enough for them to be able to progressively dominate and act as a leading actor in this sector just as well? Research has shown that the healthcare system and its dispersion within the Chinese community had experienced
an incline when it comes to the gap of quality healthcare system distribution between rural areas with a poorer population and the more flourishing urban ones, more times than not the latter were presented with a greater amount of excellent healthcare services compared to the former. This increase in gap happened back in the 1980s, which was surprising because of China being considerably progressive in improving their standards for health back in
the 1960s as well as the 1970s. It was also concerning how high the rates of maternal mortality back then; the amount even doubles the amount recorded more recently. Back then, China was still much more centralized when it comes to their fiscal as well as budgeting policies, which didn’t really help with how local governments were not able to divert their attention from their economybased exercises.
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The central government was the one to invest in healthcare, that also only resulted in the further increase of the gap between regions regarding their health services. Because of their focus and policies being so economy-based, healthcare was also something that required fees to obtain, making the government invest less and less in the sector, the budget for health kept on decreasing from more than 12 percent to only 9.1 back in the early 1990s. Primary as well as preventive care were ones China lack the most, even those still the most basic. This was what drove the Chinese government to a decision of finally taking action to better the Chinese healthcare systems so that even regions outside the supervision of the central government would still be able to get their hand on decent health services.
WHAT CHINA LACKED 7
TURNING POINTS One of the more significantly prominent turning points for China in their efforts to further improve their healthcare systems was when the World Bank as well as many other partners of China capable of providing aid in the sector of health development cooperated in taking the steps towards the bettering of China’s basic healthcare assistance, especially for the more rural and poorer parts of China lacking decent health services. They cooperated in making access to healthcare much easier than before, the central government now paying more attention to the regions of the local governments’ responsibility. Data has shown that approximately 47 million people are living in said areas and are in need of easier access to healthcare. In order to do this China worked together with its partners and managed to establish the Basic Health 8 Project throughout the years of 1998 until 2007, which ended up truly helping with the improvement of the mortality rates of their citizens even those living in rural regions. Before this, China has even authorized a research institution as one of their many efforts towards
achieving the desired measure of development when it comes to their healthcare services as well as the distribution and delivery of them to their citizens no matter the area, the institution being the China National Health Development Research Center. Said research institution also known as CNHDRC was established back in the year of 1991 and was meant to help provide aid for the Chinese government with their policy-making decisions through their views regarding specialized matters on health in China.
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EXPECTATIONS
Compared to other countries inclusive of the Asian Tigers China was the one least engaging in their contribution when it comes to investing their GDP into the sector of health, the country’s share only coming up from 5.6 to 5.7 percent in the span of 4 years between 1998 until 2001. Even so, China’s healthcare system as well as their spending on the sector has been improving quite rapidly, with their spending on it alone predicted to grow more than $600 billion and will reach $1 trillion by the year of 2020. China even engaged in some programs inclusive of the Essential Drug List as well as the exercises of reforming the systems of public hospitals so that their goal of establishing a healthcare system more equally distributed fulfilling the standard basic quality of services.
President Xi now considers the matters of health as one of the most influential factors to the development of China’s economy and social sectors. He is also optimistic that the Healthy China 2030 Planning Outline will be able to act as another chance for China to do over the way the country used to approach the aspect of the nation’s health and might provide further aid for the country to develop the sector in the long run. (2101653330)
"The all-round moderately prosperous society could not be achieved without people's allround health," -Xi Jinping
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Magazine Part III
THE RISE OF OBOR AS A NEW STRATEGY ECONOMY by Savira Nurulita
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ne Belt, One Road (OBOR) is a strategic economic agenda for China from the tip of Eurasia, Africa, and Oceania along two routes, namely west and maritime. OBOR comes from. "The New Maritime Silk Road" was announced when Xi Jinping visited Indonesia on October 3, 2013. While the "The Silk Road Belt" Economy on the mainland was inaugurated by Xi Jinping at Nazarbayev as part of a state visit to Kazakhstan on September 7, 2013. The Maritime silk can promote regional security and cooperation and cool the issue of the South China Sea to realize the Asian Dream.
On land, it focuses on building new Eurasian land opportunities and developing economic corridors. While at sea it focuses on building transportation routes that connect seaports along the belt and roads that are safe and efficient. China was strengthening cooperation between countries along Belt and Road, forming independent, balanced and sustainable development.
The five main aspect of One Belt Onet Road MAIN ASPECTS OF COOPERATION TO COORDINATE FOREIGN POLICY, BUILD NETWORK INFRASTRUCTURE AND FACILITIES, STRENGTHEN INVESTMENT AND TRADE RELATIONS, ENHANCE FINANCIAL COOPERATION AND DEEPEN SOCIAL AND CULTURAL EXCHANGES.
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This section will focus to analyze in Politic and Economic from One Belt One Road
"Great Rejuvenation of the Chinese Nation" Xi Jinping The term is used to facilitating the legitimacy of the performance of the political system and China's economic cooperation. According to Bank of China, it was noted that OBOR could create major trading and investment currencies in countries that entered into the expansion of Chinese banks into the OBOR market to serve the globalization of China's economy.
To strengthen the importance of the economic sector with infrastructure development for developing countries from One Belt. According to the Asian Development Bank (ADB) estimates that the gap in the infrastructure sector in Asia requires approximately $ 8 trillion in 2020
China seeks to open and expand the eastern region to the outside scale big. According to 2014 World Bank data, China is the largest trading partner in more than 120 countries, with GDP of 10.3 trillion dollars and more than the combined output of BRICS members (Brazil, Russia, India, China, and South Africa). One Belt One Road is one of the foreign policies of the Xi Jinping government that has the ambition to expand the Chinese market
In the Chinese economy, it is committed to investing in various infrastructure projects and also the flow of goods, money, services so that it can expand and strengthen economic capacity and connectivity between the nations that join Belt and Road. Xi Jinping stated that China must make joint efforts with countries that are related or relevant to the path so as to accelerate construction and constructive connectivity and build the Silk Belt and Maritime Silk Road lines. Xi Jinping stated that "To develop and succeed the Belt and Road not only change the mechanism or system but also need regional cooperation
Here "six international economic corridors for the" Silk Road Economic Path "and two routes for the" Maritime Silk Route". · the China-Mongolia-Russia Economic corridor; · the Bridge of the New Eurasian Land · the Economic Corridor of the China-Indochina · the China-Pakistan Economic Corridor, There are two 21st Century Maritime Silk Roads, namely (1), The route from the South China Sea and the Indian Ocean to Europe (2) The route from the South China Sea to the South Pacific.
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Although OBOR is not part of a geopolitical tool, in this case, economic cooperation can turn into a political influence because it affects the political policy. OBOR is part of politics in the legitimacy of China's status in the eyes of the world as a developing country capable of enhancing relations with participating countries in one. From this geopolitical perspective, many Chinese thinkers refer to One Belt, One Road initiative is considered a "new strategy "Which was made to support the efforts made by Xi Jinping, in strengthening Beijing diplomacy. In addition, creating new relations with major countries, where relations between the two countries are based on incentive cooperation and Zero-Sum as a win-win solution in international and economic political approaches. The Maritime Silk Road is a large geopolitical project based on infrastructure development aimed at building landscapes to enable trade and investment flows. In multinational companies usually build a port and railroad network facilities, through orders of political leaders with a view to changing cities, regions, and states to create future profits. Interdependent interactions between territorial actors and multinational companies are the link and relational geopolitical project through the Maritime Silk Road project. Â After three years since it was inaugurated by President Xi Jinping. The OBOR initiative is divided into three main perspectives, namely: Political economy, as an effort of the Chinese government to secure energy availability, economic power and multilateral cooperation for infrastructure development Domestic politics, efforts by the Chinese government in the practice of ideas sub-national to national level and aspects of domestic politics such as values and norms in making decisions for Chinese foreign policy. Regional studies analyze the impact of implementation of Chinese cooperation on other regions. Even though it seems successful in this torch initiative, China also still needs to face many challenges including seeking support, trying to improve relations with some countries that have security or border issues, confront separatist groups, ideology, religion, language, and culture. In addition, there is still suspicion about China's strategic intentions to achieve interests that the world sees as an extraordinary economic power.
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APR. 2019 | VOL. 1
CYBER SECURITY: EFFECTS ON ECONOMY IN CHINA AND ASEAN
M. Eriz Luthfitama
Before exploring this topic, we must recognize what cybersecurity is first. Cybersecurity, in terminology, is an activity to safeguard telematics resources to prevent cybercrime. Where Cybersecurity is an activity or activity to protect information from cyber attacks. Cyberattack is an information operation attack in all types of actions that are intentionally carried out to disrupt the confidentiality, integrity, and availability of information.
Recordedfutre.com
It can be concluded that cybersecurity is a form of security system in cyberspace that is related to all kinds of activities using the internet and as a piece of information or data security system.
Cyberspace Administration of China (CAC) publishing the first Cyber Security Strategy (Strategy) at December 27, 2014, which is illustrates and reaffirms China's main position and propositions about the development and security of cyberspace and serves as a guide to security work Chinese cyber. This strategy aims to build China into the power of cyberspace while promoting an orderly, safe and open cyberspace and safeguarding national sovereignty. This strategy addresses cybersecurity as a "new territory of state sovereignty" and marks a new step in facilitating cyber control. The main jobs of CAC are: · Maintaining cyberspace sovereignty · Protect national security · Protect important information infrastructure (CII) · Building a healthy online culture · Combating cybercrime, espionage, and terrorism · Improve cyber governance · Improve early cybersecurity · Improve cyber defense capabilities · Strengthening International Cooperation
This strategy defines the scope of CII as which includes but no longer constrained to basic communication and broadcasting networks, energy resources, finance, transportation, education, scientific studies, hydraulic systems, business manufacturing, health care, social welfare, public services, and important information and internet applications system for government institutions. To ensure CII protection, cybersecurity review regimes will continue to grow. In order to improve cyberspace governance, the government will implement Cyber Security Law and Youth Online Protection Regulations. In addition, the development of positive Internet culture is designed to increase online protection for minors. Overall, there are consistent themes for promoting "safe and reliable" products and developing security reviews. This strategy also promises to actively promote the internationalization of Internet resources, including the IP address and root server and supports UN initiatives in cyberspace.
APR. 2019 | VOL. 1
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China has a goal to develop their own cybersecurity because of the rapid development of technology, The Information Communication Technology Company (ICT) is the main support for millions of Chinese citizens to become consumers and active participants in the information age.
This risk is based on all economic sectors that depend on ICT infrastructure, from manufacturing to transportation. One reason why the scope of the new rules is so broad is that the term "network operator" is sown throughout the Cyber Security Act and many rules that accompany it.
And the Chinese government has made new companies, laws, and policies to control hardware, software, information flows, and data within its borders in ways that can change the landscape for foreign and domestic ICT companies and internet users.
And in the government structure of the Chinese Leadership, it is in the midst of building the most extensive governance regime for cyberspace and information and communication technology (ICT) from any country in the world.
Where this is a competition with other countries to improve cybersecurity.
China's ICT governance regime is best understood as a matrix of interrelated strategies, laws, actions, regulations, and standards. Together, these sections include rules for data protection, critical infrastructure (CI), encryption, internet content, and strengthening the Chinese ICT industry. What remains to be visible is whether or not the main economies which include India, Brazil, and the ASEAN bloc will adopt Beijing’s view of sovereignty to adjust emerging space and technology, and how governments and industries within the US and Europe will respond to a doubtlessly greater fractured global. legal landscape.
They are facing an increasing risk of IP and market access. Since 2015 when the process of drafting China's Cyber Security Law began, the main national standard body, the National Information Security Standardization Committee (TC260), has issued nearly 300 standards related to cybersecurity. This new standard includes products ranging from software to routers, switches, and firewalls. The standards of cybersecurity security are beginning to be seen because they play a large role in the country's ambitions for leadership in cyberspace technology and security. Beijing uses standards as a national policy tool intended to improve higher-level legal details, especially the Cyber Security Act and the draft Encryption Act. standards play an important role in supporting. Cybersecurity has a number of major risks for foreign companies around a growing cybersecurity standard body, namely invasive security audits that require sending IP and source code as part of a security evaluation, the cost of compliance around product redesign. On the China market. Beijing can use virtual space standards as a tool to punish US companies in a trade war between the United States and China.
Some Chinese customers may not buy from vendors who do not have certification related to certain standards (which vary greatly according to business or product). There are cases where customer transactions do not go through because the product does not have certain certification, for example. Standards also become necessary when paired with regulations that refer to these standards. The government can audit the company against standards, even if the standard is not officially needed. But cyber security still requires security standards that are appropriate for its implementation where the cybersecurity standard still creates a series of challenges. What is clear, however, "cybersecurity standards is an important and growing factor that can shape the operating environment for foreign companies in China for any business that relies on ICT infrastructure smoothly and safely", This also influences new policies in the ASEAN region because the region and population use the fastest growing internet in the world, with a user base estimated to reach 480 million by 2020. In 2016, this figure is 260 million, which means four million new users who come every month.
APR. 2019 | VOL. 1
Social media is used by half of ASEAN's population of 630 million, making it one of the largest social media markets in the world. Of the 10 countries that are the largest Facebook users in the world, four are in ASEAN: Indonesia, the Philippines, Vietnam, and Thailand. Digitalization in Southeast Asia has important economic implications. Most of this consumption will be in the fields of electronics, clothing, household goods, and increased travel throughout the region and elsewhere. This has a good impact in terms of building the middle class and encouraging job growth in this region. But there is a negative impact, the emergence of cyberterrorism, cyber fraud, and identity theft increasingly threatening its potential. Evil actors work quickly and creatively to destroy countries, businesses, and people. Where now a country is seen from its technology which will affect its economic success If cybersecurity is threatened, investor confidence in the ASEAN Economic Community (MEA) will start to fade. AT Kearney said members of ASEAN countries spent 0.06 percent of their GDP, or just $ 1.9 billion, on cybersecurity. The report recommends that ASEAN countries increase spending on cybersecurity by 0.35 to 0.61 percent of their collective GDP ($ 171 billion) between 2017 and 2025. Where Singapore is currently ASEAN chair this year, investing 0.22 percent of GDP for cybersecurity in 2017, leading ASEAN and ranking third globally.
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Southeast Asia's strategic relevance and digitalization are growing rapidly making it the main target of cyber attacks. ASEAN countries have been used as launch platforms for attacks, either as insecure infrastructureprone nests or as well-connected hubs to initiate attacks. There is also a lack of skilled talent to deal with cyber threats. Given how cybersecurity threats can easily transcend national borders, no country or company can fight the threat itself. Under the leadership of Singapore, ASEAN began to enhance cybersecurity in its regional policy agenda. Similarly, ASEAN needs a new consensus on benchmarks and certain evaluative techniques to assess the methods used by a country's cybersecurity agencies and the Computer Emergency Response Team (CERTS) respond to the threat of cybersecurity. In addition, without a shared understanding of appropriate legal penalties for criminal offenses in cyberspace, the same criminal offenses are handled in a very different way by various ASEAN member countries. - 210167783.
April Edition
TRADE WAR CHINA - US Ary Nugroho
A trade war happens when countries attack each other's trade with tariffs and quotas, and it can be referred to as a side effect of protectionism. This kind of economical war is usually sparked up when one country raises tariffs, i.e. a tax that is imposed on imported products made abroad. Imposing a tax on a product means that people are less likely to buy them, because they've become more expensive. As a result, people buy cheaper local products instead which consequently boosts the local economy (Investopedia). Trade wars can hurt other nation's economies and lead to rising political tensions between them. United States of America and People's Republic of China are two largest economies it the world, according to data from the International Monetary Fund. China’s economy is expecting to eclipse the US economy by 2050. United States is China's largest trading partner while China is for US second largest trading partner after European Union. Both countries are the members of the World Trade Organization (WTO) which also provides decision-making platform for all of its 164-member states in the trade-related disputes.
One of the main reasons why Donald Trump decided to impose tariffs on Chinese goods was to reduce a trade deficit2. This is one of the main points of his new trade policy that he announced in March 2018. In addition to balancing the trade deficit, the new trade policy agenda also stresses the issue of protection of the U.S. intellectual property rights. The harmfulness of the trade deficit is a controversial issue. It is perceived to have a negative effect on the economy. This is because surpluses of imported goods lead to high unemployment rates, This, in tangent, leads to the inability of local manufactures and markets to compete with the prices and quantity of the imported items. A trade deficit commonly emerges when a state does not supply its citizens with enough goods. In other words, a deficit in trade shows that the population has enough money to afford more goods than the amount that is currently being made in their state. Moreover, China can produce consumer goods at lower costs than many other countries can. This combined with China’s protectionism might also cause the trade deficit.
During a period of scarcity, a trade deficit may not be dangerous, but the fact of the matter is that the surplus of imported foreign products causes a decline in prices and an inability to create enough working places. Local enterprises and companies might start to have difficulties to compete, conform and correspond to the lower prices.
As a response, China imposed retaliatory tariffs on U.S. imported goods. However, U.S. exports to China amounts of $129,89 billion, which is roughly one third of the amount that China exports to the U.S. At first, China played it hard with the imposition of tariffs on $3 billion of the U.S.’ imports in response to the steel and aluminum tariffs in March 2018, and later in April threatened to levy 25% tariff on imports of 106 products from the USA. But as the United States got bolder with the tariffs, with no signs of backing down, China changed its approach. At the end of April 2018, China proclaimed to cut car import tariffs by half. In May 2018, they offered to significantly increase purchases of U.S. goods and considered buying more U.S. coal to narrow the trade deficit. Fast forward to July 2018, the U.S. had not backed off after all these offers and applied tariffs on $34 billion worth of products and in August additional 16$ billion. This got the exact same retaliatory response from China on $50 billion worth of goods imported to China. Whether or not President Donald Trump will impose tariffs on all imports from China depends on the future development of the U.S.-Chinese relations. After launching a retaliatory action to the US, Chinese Prime Minister Li Keqiang said that he would not weaken the yuan to face this trade war. Li said he would reply with a 'punch' that was softer than what the US did. "China will never intentionally reduce the value of its currency to increase exports. The depreciation of the yuan has more to lose than benefits for China," Li said at the World Economic Forum in Tianjin.
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