Business Insider (November 17)
“While you weren’t looking… the trade war with China went completely off the rails and lost its meaning.” The trade war ostensibly began to deal with the “theft of US intellectual property (IP).” This key issue has essentially been abandoned and the dispute has moved on. It now appears centered on “how many soybeans China will buy.”
LA Times (September 17)
“A U.S.-China tariff war is sure to produce very real economic consequences, and political fallout, in both nations…. Whatever else one might think of President Trump’s actions, he is confronting China about its unfair trade practices and theft of American intellectual property when too many others shy away from the truth for fear of Chinese reprisal.”
Tags: China, Confront, Consequences, Fallout, Fear, IP, Reprisal, Tariff, Trump, U.S., Unfair trade, War
The Economist (September 17)
“Investors outside China have about $1trn invested in firms that use” variable interest entities (VIEs). These include Alibaba and Tencent. Yet, it remains “unclear if VIEs are even legal in China,” exposing investors to two risks. “First, the VIEs could be ruled illegal, potentially forcing the firms to wind up or sell vital licences and intellectual property in China. The second danger is that VIE owners seek to grab the profits or assets held within. If they refuse to co-operate, die, or fall out of political favour, it is far from clear that firms can enforce VIE contracts in Chinese courts.”
Tags: Alibaba, Assets, China, Contracts, Courts, Illegal, Investors, IP, Profits, Risks, Tencent, VIEs
