yy JOVENAL LAURENTE LEANO MACARAYO TADIFA@Q7p DD HI ») IR 1964 People’s Republic of China Established Mtao Zedong establishes the People's Republic of China in Befing after peasant-backed Communists defeat the Nationalist government of Chiang Kaishek, United Stateswhich backed the Nationals against invading Japanese forces during World War IL invades South, Korean War Breaks Out The Sovie-backed North Korean People’s Ar Korea, The United Nations and the United States rush to South Korea's de China's First Atomic Test China joins the nuclear club and conducts its first est of an atomic bomb, The test comes amid US.-Sino tensions over the escalating conflict in Vietnam,Gi iy ID HI ») | u 982 Nixon Visits China He meets Chairman Mao Zedong and signs the Shanghai ‘Communiqué with Premier Zhou Enlai, The communique seis the stage for improved US.Sino selatons by allowing China and the United States to discuss difficult issues, particularly Taiwan, Formal Ties and One China Policy iplornais recoguiion, while actaowlea¥ing mainland China's One China peiacpke and severing, normal tics with Taiwan.Congress approves the Taiwan Relations Act, fhe act requires Washington China in the Reagan Era Reagan administration then signs in August 1982 thin joint ‘communiqué with he People's Republic of China to normalize relations, ‘The US. gwcrment permis ejing to make porchaves of US. rliary equipmentFI 1989 1990 1996 2000 Tiananmen Square Massacre ‘Thousands of students hold demonstrations in Beijing's ‘Tiananmen Square, lemanding democratic reforms ane an end to corruption. Government sends some troops and killing hundreds of students China’s Economic Policy Taiwan's First Free Presidential Vote China recalls its ambassador after President Bill Giinton authorizes a visit by Lee, reversing a fifteen-year-old U.S, policy against granting visas 10 “Taiwan's leaders, Normalized Trade Relation wit Clinton signs the US-China Relations Act of 2000 granting Beijing permanent normal trade relations with dhe United States and paving the way for Chia to join the WorldGi iy ID HI ») | u 2007 2010 China Increases Military Spending China announces an 18 percent budget increase in < spending totaling more than $45 billion, China says its the spending to provide its soldiers wth better training ancl China Becomes World's Second-Largest Economy China surpasses Japan, China is on wack to overtake the United States as the world’s number one economy by 2027 Rising Trade Tensions The United States and its lies contend China's quota violates inernational rade norms, forcing mulinatonal firms that use the metals to relocate wo China Jn Nwwamber 2012, the 18th National Party Congress concludes withthe most significant leadership turnover in decades as about 70 percent of the members of the country’s major leadership bois ~the Politburo Standing Commitee, the Central Miltary Commission, andthe State Council— are replaceQ mp D> Fil IS IR 2013 2015 Sunnylands Summit President Barack Obama hosts Chinese President XiJnping fora “shirsoeves summit” atthe Sunnylands Estate. Obama and Xi alo vow to establish a “new model” of relations, a nod wo X's concept of establishing a “new type of great power relations” for the United States and China. U.S. Warns China Over South China Sea US. Secretary of Defense Ashton Carter calls (on China to halt its controversial land reclamation efforts in the South China Sea, saying that the United States opposes “any further militarization” of the disputed territory. Trump Affirms One China Policy After Raising Doubts Trump breaks with established practice by speaking onthe telephone with Taiwanese Present Tai Ing-wen an Secretary of State Rex Tilerson, visiting Beijing in Mareh, describes the U.S.-China relationship as one “built on non-confiontation, xno conflict, mutual respect, and always searching for win-win solutions.” Trump welcomes Xi Jinping for a surnmit at th Lago in Florida, where bilateral trade and North Korea top the agenda,“a R 1) NO ANS Y 2018 2019 Trump Tariffs Target China US, products, stoking concerns of a trade war between the ‘worlds largest economies U.S.-China Trade War Escalates Move than cight hundred Chinese products inthe industrial and wansport sectors as well s goods such as televisions and medical device, will face a 25 percent import tax, Trump and members of his administration believe that China i “ripping off” the United § Huawei Sues the United States Amid legal proceedings against Meng, Huawei sues the United States in a separate lawsuit for banning US. federal agencies from using the telecom giant's equipment. Trump administration launches an aggressive campaign to other countries not to use Huawei equipment Trump Signs Bill Supporting Hong Kong Protesters Trump signs the Hong Kong Human Rights and Democracy Act aftert passes inthe US, Congress with overwhelming major‘Phase One’ Trade Deal Signed “The deal relaxes some US. tails on Chinese imports and commits China to buying an adtional $200 billion worth of American goods, including agricultural products and cars, over wo years Tensions Soar Amid Coronavirus Pandemic Leading officials in both China and the United States blame the other side for the pandemic, A Chinese Foreign Ministry spokesperson claims that the US, military brought the virus to China, while President Trump references to the “Chinese virus,” which he says spread because of failures by the Chinese government.Conflict Issues RELATION‘Asia is now home to half of the 20 fastest growing economies, generates two-thirds of global growth, and ‘accounts for 40 percent of global GDP. Sixty percent of the ‘world’s population lives in the continent, and the size of Asia’s ‘middle class (notably including China and India) is expected to reach nearly 2.3 billion people, or 65 percent of the world’s total by 2030, ‘The United States has five formal treaty allies in Asia and currently deploys, including at Indo-Pacific Command Given Asia's growing importance, China’s behavior has assumed even greater significance for many in the United States. Not only is China’s behavior intrinsically important to the United States, but itis occurring in a region that is now more meaningful to both US interests and to global order than at any time since the end of the Cold War. in Hawaii, over 350,000 US troops in the region from ‘across all armed services.— WITHDRAWAL-FROM PARIS CLIMATE ACCORD * The Trump Administration made the destructive decision to withdraw from the Pa Climate Accord, Beijing and Washington had cooperated to pursue benefits not only for themselves but for the world in curbing climate change. * Trump made the decision to withdraw from the Paris Agreement because of the unfair economic burden imposed on American workers, businesses, and taxpayers by U.S. pledges made under the Agreement,”— WITHDRAWAL-FROM PARIS CLIMATE ACCORD * According to the 2017 BP Statistical Review of World Energy, since 2005 annual U.S. carbon dioxide emissions have declined by 758 million metric tons. That is by far the largest decline of any country in the world over that timespan and is nearly as large as the 770 million metric ton decline for the entire European Union. + By comparison, the second largest decline during that period was registered by the United Kingdom, which reported a 170 million metric ton decline. At the same time, China’s carbon dioxide emissions grew by 3 billion metric tons, and India’s grew by | billion metrie tons.* During a recent climate hysteria town hall event on CNN, Trump tweeted out a thread of facts that CNN ignored during its event. WITHDRAWAL-FROM PARIS CLIMAT ACCORD 1, Which country has the largest carbon emission reduction? AMERICA!” Trump tweeted. 2, Who has dumped the most carbon into the air? CHINA! 3, 91% of the world’s population are exposed to air pollution above he World Health Organization’s suggested level. NONE ARE IN THE U.S.A.!” 4, The U.S. now leads the world in energy production... BUT... 5. Who’s got the world’s cleanest and safest air and water? AMERICA!” Trump added.* TRADE NEGOTIATIONS BETWEEN THE US AND CHINA STALLED China TRADE WAR for Fechnological | Sup macy Z bs « + THE CENTRAL ISSUES THE US RAISED WHEN IT IGNITED A TRADE WAR WITH CHINA LAST YEAR: INTELLECTUAL- PROPERTY RULES, GOVERNMENT SUBSIDIES, AND ENFORCEMENT MECHANISMS. * THE US SAID CHINA RENEGED ON PREVIOUS COMMITMENTS IN A DRAFT AGREEMENT, LEADING BOTH SIDES TO RAISE TARIFFS ON EACH OTHER.HOW HA GROWN Oy U.S. TRADE DEFICITEe eee PROPERTY RULES * United States President has repeatedly lashed out at China’s lax IPR protection laws, forced technology transfer and alleged Intellectual property theft, saying it costs the US as much as USS600 billion per year, a charge China has denied. * China will improve its IPR protection to bolster innovation and support industries, but not as a result of US pressure + “The US does not trust the system: the Chinese government-dominated system, the socialist approach and Made in China 2025. They are speaking different languages.”Ee eee PROPERTY RULES ‘+ Trump's tariffs policy aims to encourage consumers to buy American products by making imported goods ‘more expensive, * The US has imposed tariffs on more than $360bn (£268bn) of Chinese goods, and China has retaliated with tariffs on more than $110bn of US products. + Washington delivered three rounds of tariffs in 2018, and a fourth one in September last year, The most recent round targeted Chinese imports, from meat to musical instruments, with a 15% duty. + Beijing hit back with tariffs ranging from 5% to 25% on US goods.PROPERTY RULES What could be hit by the new tariffs? 1 Top 10 US imports trom China facing a tariff increase from 10% to 28% Viny! tile floor coverings _—_ nosiO Reese WASHINGTON * Chinese investments in, and technical exchanges with, the United States contributed greatly to the development of cutting-edge technologies in Silicon Valley and beyond, and still do, Americans have also obtained economically priced and increasingly well-made products designed, assembled, or manufactured in China, + As trade tensions escalated , Trump seems intent on preventing China from becoming great again. The eatalyst for the trade war is China’s strident “Made in China 2025” industrial upgrade strategy introduced by Beijing in 2015, + “Made in China 2025” aims to achieve China’s eventual economic transformation from a low-cost manufacturing hinterland to a great innovation power. This remains the top priority of President Xi Jinping and his comrades in years to come, However, such a prowess has caused more fears than appreciations across advanced economies in the US and Europe. As an industrial development guideline, Beijing eyes are on 10 strategically and technologically important sectors, including information technology, biotech, robotics, aerospace and clean-energy vehicles. + President Xi’s team is tailoring the initiative to produce national champions that can lead China’s dominance in the above 10 sectors, with the aim of eventually replacing foreign technology with domestic suppliers,iO Reese WASHINGTON + US's unassailable lead to semiconductor sector manufacturing has been the successful result of Silicon Valley and world-class scientific research institutes for at least 50 years. This particular sector remains under US dominance without any formidable competitor. + The NSS argues that US companies in these sectors are a strategic asset that need to be protected from rivals like China, and China is a special concern because it employs a variety of legal and illicit ‘means to acquire US technology. The US business community shares these concerns about the escalating technology competition and the importance of American companies being leaders in these high-tech sectors. * Given that China, like the rest of the developed world, will rely on US core technology in semiconductors for the foreseeable future, Beijing may have little choice but to play by global trade rules.eae COLD WAR" Huawei controversy + US Secretary of State Mike Pompeo described Huawei and other Chinese state-run technology companies as "Trojan horses for Chinese intelligence." + Washington fired its most recent salvo against Huawei on May 15, aiming at the company's very heart: chip production. The US said American machines, tools or other products would no longer be allowed to be involved in Huawei chip production anywhere in the world. + Chinese President Xi Jinping announced plans to invest $1.4 trillion (€1.3 trillion) in building 5G networks and developing artificial intelligence over the next six years, helping to ensure China's technological independence.Cee eeeus Pandemic and USA *Donald Trump called the pandemic the "worst attack” the US had ever experienced, and put the blame squarely on China. *” This is worse than Pearl Harbor. This is worse than the World Trade Center," Trump said. "And it should have never happened. Could've been stopped at the source. Could've been stopped in China. It should've been stopped right at the source. And it wasn't." unleashed by Chinese mismanagement, but had been manufactured in a laboratory in Wuhan,Cee eeeus Pandemic and USA * American resentment toward China has increased dramatically, stoked by the explicit efforts by the Trump administration to pin the blame for all aspects of the pandemic on the PRC. * Secretary of State Mike Pompeo has repeatedly sought to formalise criticism of China, such as in communiques at the G7 . Just last week, he also declared the US had “significant evidence” the pandemic was not just a disaster unleashed by Chinese mismanagement, but had been manufactured in a laboratory in Wuhan.RELATION } [ow iT AFFECTS THE UnitTepD STATES+US-China trade relationship supports Fone ee Co eT mT ORT ee Rete Ferear Mr eme enn rtm te tentang rae eee mcen tra temmer emery Biron tea Oe escent Peis CeCe a en ce Sr eee ROLE eee eS Rec Scena CCS ene Om RT ace significant opportunities to tap into a new STR eee Re Ug Peer nene it scenes *Economic data show that nations trading closely with China outperform nations Scare Ce A expect this trend to continue.*China purchased $165 billion in goods and aoe Ue CSC oe representing 7.3 percent of all US exports and about Tea User recat *US firms sell high-value products to China, including cars and trucks, construction equipment, and Se eta ese America’s 11th-largest export market in 2000, China has grown to Dee CRE Ce ere EL Pon om eo Tee Meer Rese me CCRC icsct meh) Coats l*China is expected to continue to be one of the fastest Pa ere ey ies for American companies. +Chinese manufacturing also lowered prices in the United SCC eae Cen oe PSR ee Oc +Since 2003, productivity growth in US manufacturing outpaced most advanced economies. US factories are still 90 percent more Cee U RMU ECHow UKM Kiko bic ho Un Senn emer Ro oc sea eT eee Ca Cy reed specific exported goods, making them undesirable or difficult to sell in foreign erin See ene erence Sm Oe ROU Eocene eek eset of the Trade War, most notably due to the $10.4 billion decrease in agricultural product demand from China from 2017 to 2018. “The decline in US exports has negatively affected businesses across the United ecg +Consumers are negatively impacted by an increase in price levels.SURE Re ne tee eae racing tariffs on each other. The US slaps a omer etp ere eet Pe CLERC Ra CCE len wien SOS m nto SCs cee a ce ere an “disentangled” into separate US-centric and China- centric supply chains, says Pat Gelsinger.U.S. - CHINAThe .world’s,leading SUPERPOWERSCCC Ser me Oren Tens Peres es urroC eres wecrntss became “the world’s factory” The country's GDP tripled 1988, 15% of China's export went to AmericaOctober 2000, Normalized Trade Relations. U.S. President Bill Clinton signs the U.S.-China Relations Act of te Use SES CUCL CEs Cems TCC PoC es el CMEC MCC CCS CMCC AMES ree Ce SC rR Ure rte eee eT Ee Between 1980 and 2004, U.S.-China trade rises from $5 billion to $231 billion. In 2006, China surpasses Mexico POMC a ML CLS ek Lee CM Careers CECECwSOT Re RSS Oe SC RU TUCO Oem Ce subsidies) CORPO ES ere tune eRe Oe Te oe doubled the average tariff rate on Chinese imports from 3.8% to 6.7%. And its American firms that Oe aC ee TT enn ace COU Ce ace See CaS eRe RCC CRS OEM EO Recerca ee TaInternational Monetary Fund (IMF) eee ROE a CE eae em (Seton aS Pee Ucn ran ete ORT roca ae oy ST Ree Ente Eee ca from Asia, Europe to the US have seen Reece ee oman TT ETc Search for import substitutes and the enters rane Loita tester lien eaCSE TUNA RNY ete cero eer ye eter Sry Uae EROS C LA distribution of network and low labour onsTrade War Ceasefirea os a i United States of America ISA ri j— (BANKING SYSTEM VISA AND MASTER CARD) * Global Feet tite Aa) is the king Oo FINANCIAL *It controls the world financial plumbing LEADERSHIP SCS a ne Uc A cS KS world economy SOO EMRE com enc rect UT ecto STOR OOM nM REC IY) Gre Enema ICTSChina (TENCENT AND ANT FINANCIAL — ALI PAY ($49TRN SALES) BELT ROAD INITIATIVE (YOUTUBE) * Second largest economy See Rae ne rte INTERNAL) Scam Tea EU Secon sts ae Ray Poem Conti + From January to April 2020 no bonds fall relatively stable unlike other markets.is neat affects theOO PHILIPPINESTrade War rad eed Boosted income and exports of countries that are in partnership of both countries. TRADE REDIRECTION enero S AE cre Ro importing from China — will choose to import from firms located in other countries unaffected by the new tariffs.Exports could be our saving grace Te et ee te BEEF UP OUR COMPETITIVENESS, AND Tt elt ee eee) MANUFACTURERS.es ta a toto) QUARTER OF 2018. MANUFACTURING tha ir) E bat a adEfforts to boost the nation’s competitiveness can enhance if its position. Tax reform and President “build, build, build” programme for infrastructureLast May, Duterte also signed the Ease of Doing Business OCCURS eC eco POS COe Ey Oe Pry AT&T are among the foreign companies interested in PRCT Re A eT eed PSCC MUR CeaPVR are Meeos teem PCR RL CURE RM SCs oe ees cotCs and nearly a quarter of its import bill, based on July 2018 renPotential impact on ASEAN of the US-CHINA trade war COUNTRY eared ag VIETNAM 73 CAMBODIA a Cae MALAYSIA i) LAOS i) BUEN F ra PHILIPPINES B Ky PIN es INDONESIA F eS iGAPORE es