China-US Trade Frictions: Is the US trying to slow down 'Made in China 2025'?

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02:11

We begin with the latest on China-US trade tensions. On Monday, Washington announced a market-shaking decision to deny export privileges to ZTE, a leading Chinese telecom giant. CGTN's Sun Tianyuan explains why the US's motives will not lead to a winwin outcome.

In Monday's statement, the US Department of Commerce decided to suspend the export privileges of ZTE for a period of seven years until March 13th, 2025. The timing 2025, perhaps, is worth consideration.

WALL STREET JOURNAL said that the timing looks to hit "made in China 2025" and a series of scientific and technological advancements in the field of manufacturing. Ten domestic industries are suffering from the recent trade sanctions towards China, including information technology, aerospace equipment and high performance medical devices.

For ZTE, this is a lethal blow. Around 25 to 30 percent of its communication components are provided by US manufacturers. It can no longer use Qualcomm chips in smartphones. However, for the US semi-conductor industry, potential losses are looming.

LI GANG, VICE PRESIDENT CHINESE ACADEMY OF INTERNATIONAL TRADE AND ECONOMIC COOPERATION, MINISTRY OF COMMERCE "ZTE is working on the establishment of 5G global standardization. I think, seeing that Chinese enterprises' learning curve with science and technology is getting smaller, the U.S. is doing this to keep its so-called monopoly position."

On Tuesday, China's Ministry of Commerce said it will implement temporary anti-dumping measures on US sorghum. Importers of the product will be required to pay deposits with Chinese customs calculated based on a rate of 178.6 percent. The new deposit requirements will take effect on Wednesday.

Eight ministries and commissions made a joint announcement on the website of China's National Development and Reform Commission, saying the country will speed up to develop advanced manufacturing.

The statement also said that by 2025, China's comprehensive strength in major technical equipment development is expected to reach international standards. Sun Tianyuan, CGTN.