You are here: Home » Tag Archives: trade war

Tag Archives: trade war

Feed Subscription

US indicts Chinese spy for trying to steal aviation trade secrets

The US Justice Department said on Wednesday it had detained a Chinese spy on charges of state-sponsored economic espionage, after he allegedly attempted to steal trade secrets from several American aviation and aerospace companies. Yanjun Xu, an intelligence officer for China's Ministry of State Security, is accused of running a five-year operation in which he would woo employees from major US aerospace firms and persuade them to travel to China under the guise that they would give a presentation at a university. Court papers documented how Xu and other intelligence operatives would then plan to illicitly obtain "highly sensitive information" from their expert guests. In one instance, Xu recruited an employee at GE Aviation, who sent him a presentation containing the company's proprietary information. Xu then continued to follow up by asking the employee for more specific technical information and even proposed setting up a meeting in Europe. GE Aviation is a Cincinnati-based division of US industrial conglomerate General Electric, which regularly works under Defense Department contracts. The company said it had been cooperating with the FBI for several months on the matter. "The impact to GE Aviation is minimal thanks to early detection, our advanced digital systems and internal processes, and our partnership with the FBI," GE Aviation spokesman Perry Bradley said. According to court documents, Xu is also suspected of targeting another unnamed described as "one of the world's largest aerospace firms, and a leading manufacturer of commercial jetliners and defense, space and security systems," and a third as a leader in unmanned aerial vehicle technology. Unprecedented extradition Xu was detained in Belgium in April on a US arrest warrant. Following several failed appeals, he was handed over to American authorities on Tuesday in what was an unprecedented extradition of a Chinese intelligence official to the US from another country. The announcement will almost certainly heighten tensions between Washington and Beijing over trade tensions, hacking and corporate espionage. Read more: China's tech firms hit by spy chips row Bill Priestap, the FBI's assistant director for counterintelligence, said that the incident "exposes the Chinese government's direct oversight of economic espionage against the United States." John Demers, the assistant US attorney general for national security, warned that the case was not an isolated incident. "It is part of an overall economic policy of developing China at American expense," he said. "We cannot tolerate a nation stealing our firepower and the fruits of our brainpower." Xu is the second Chinese national in two weeks to be charged by the US Justice Department with trying to steal aviation industry secrets. Ji Chaoqun was charged by American authorities of helping identify potential recruitment targets for China's Ministry of State Security. Officials said the two cases appeared closely linked.

The US Justice Department said on Wednesday it had detained a Chinese spy on charges of state-sponsored economic espionage, after he allegedly attempted to steal trade secrets from several American aviation and aerospace companies. Yanjun Xu, an intelligence officer for China’s Ministry of State Security, is accused of running a five-year operation in which he would woo employees from major ... Read More »

IMF downgrades global growth outlook, places responsibility on US-China trade tensions

The IMF has cut its global economic forecast for 2018 and 2019, citing above all rising import tariffs between the US and China. A fall in trade volumes and manufacturing orders could hit Germany particularly hard. The International Monetary Fund (IMF) on Tuesday downgraded its outlook for the world economy, warning that the imposition of import tariffs between the US and China were taking its toll on global trade. The IMF's World Economic Outlook report, unveiled on the eve of its upcoming summit in Bali, Indonesia, estimated that global growth in 2018 would reach 3.7 percent, the same as the previous year but lower than the 3.9 percent it had forecast earlier this year. It also slashed its outlook this year for 19 countries, including several eurozone member states and emerging markets. Growth in both the United States and China were expected to slow next year as a result of the trade dispute triggered by US President Donald Trump. China was set to grow by 6.2 in 2019, down from the 6.4 percent projected last July. Both figures would mark the slowest rate of Chinese expansion since 1990, when its growth rate was slashed in the aftermath of the violent suppression of pro-democracy protests. The IMF warned that China's growth even risked declining by a full percentage point by next year in the event of a "worse-case" scenario, involving further tariffs coupled with a collapse in confidence by businesses and markets. Beijing policymakers were navigating a "difficult trade-off between growth and stability," the IMF said in a statement. US growth this year remained steady at 2.9 percent but is set to slow in 2019 as the effect of Trump's sweeping tax cuts wear off and the trade dispute with China begins to set in. "The forecast does not incorporate the impact of further tariffs on Chinese and other imports threatened by the United States, but not yet implemented, due to uncertainty about their exact magnitude, timing, and potential retaliatory response," according to the IMF. Trade tariffs and Brexit put eurozone at risk Global trade tensions would also have a bearing on the eurozone's 2018 growth forecast, which was cut to 2 percent from 2.2 percent previously. A drop in manufacturing orders and trade volumes would hit Germany particularly hard, the IMF report warned. German growth was revised down to 1.9 percent in both 2018 and 2019 due to a slowdown in exports and industrial production. The possible failure of Brexit negotiations also dampened the eurozone's growth outlook. The UK economy, meanwhile, is expected to grow 1.4 percent this year and 1.5 percent in 2019 — falling behind almost all of Europe, with the exception of heavily-indebted Italy. UK growth has been drastically cut in the aftermath of the Brexit vote; uncertainties surrounding the country's divorce from the EU have stymied investment and seen part of its key financial sector relocate to the continent. Fed policy dampening developing markets' growth While tax cuts and increased spending have seen an immediate upswing in US growth, the IMF warned that the country could face an unwelcome "inflation surprise," which would prompt the Federal Reserve, America's central bank, to hike rates at a faster-than-expected pace. Read more: Federal Reserve issues trade conflict warning The Fed's rate hikes have already piled pressure on emerging market economies, increasing the risk of capital outflows as investors seek higher returns. IMF chief economist Maurice Obstfeld said in a statement that, although emerging markets had not yet seen a generalized pullback of capital, "there is no denying that the susceptibility to large global shocks has risen." Any major economic shock in developing nations would also come to bear on leading economies, including the US. "Any sharp reversal for emerging markets would pose a significant threat to advanced economies," said Obstfeld.

The IMF has cut its global economic forecast for 2018 and 2019, citing above all rising import tariffs between the US and China. A fall in trade volumes and manufacturing orders could hit Germany particularly hard. The International Monetary Fund (IMF) on Tuesday downgraded its outlook for the world economy, warning that the imposition of import tariffs between the US ... Read More »

Scroll To Top