Tag Archives: TRF

EXCLUSIVE G7 coalition has agreed to set fixed price for Russian oil -sources

WASHINGTON/LONDON, Nov 4 (Reuters) – The Group of Seven rich nations and Australia have agreed to set a fixed price when they finalize a price cap on Russian oil later this month, rather than adopting a floating rate, sources said on Thursday.

U.S. officials and G7 countries have been in intense negotiations in recent weeks over the unprecedented plan to put a price cap on sea-borne oil shipments, which is scheduled to take effect on Dec. 5 – to ensure EU and U.S. sanctions aimed at limiting Moscow’s ability to fund its invasion of Ukraine do not throttle the global oil market.

“The Coalition has agreed the price cap will be a fixed price that will be reviewed regularly rather than a discount to an index,” said a coalition source, who was not authorized to speak publicly. “This will increase market stability and simplify compliance to minimize the burden on market participants.”

The initial price itself has not been set, but should be in coming weeks, multiple sources said. Coalition partners agreed to regularly review the fixed price and revise it as needed, the source said, without disclosing further details.

Pegging the price as a discount to some index would have resulted in too much volatility and potential price swings, the source added.

The coalition worried that a floating price pegged below the Brent international benchmark might enable Russian President Vladimir Putin to game the mechanism by reducing supply, a second source with knowledge of the discussions said.

Putin could benefit from a floating price system because the price for his country’s oil would also rise if Brent spiked due to a cut in oil from Russia, one of the world’s largest petroleum producers. The downside of the agreed fixed price system is that it will require more meetings of the coalition and bureaucracy to review it regularly, the source said.

U.S. Treasury Secretary Janet Yellen and other G7 officials argue the price cap, set to begin Dec. 5 on crude and Feb. 5 on oil products, will squeeze funding to Russia without cutting supply to consumers. Russia has said it will refuse to ship oil to countries that set price caps.

Shipping services are eager to see more details about the G7 plan which is due to take effect in a month.

A steady price cap could enable insurers to more confidently roll over contracts and initiate new ones without fear that the price could be adjusted by the countries buying Russian oil, which could have potentially exposed insurers to sanctions.

No immediate comment was available from Treasury or the embassies of coalition members, which include the G7 rich nations, the European Union and Australia.

Separately, The Wall Street Journal reported on Friday that the United States and its allies had agreed on further details on which sales of Russian oil will face the price cap.

Each load of seaborne Russian oil will only be subject to the price cap when first sold to a buyer on land, the countries determined. Reuters could not immediately verify the report which cited people familiar with the matter.

Reporting by Andrea Shalal and Timothy Gardner in Washington and Noah Browning in London; editing by Heather Timmons and Matthew Lewis

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

U.S., Chinese foreign ministers hold first in person talks since October

NUSA DUA, Indonesia, July 9 (Reuters) – U.S. Secretary of State Antony Blinken and China’s Foreign Minister Wang Yi met on Saturday for the first in-person talks since October after attending a G20 summit where the top U.S. diplomat led efforts to pressure Russia over its war in Ukraine.

U.S. officials say Blinken’s meeting with Wang in Bali, Indonesia, including a morning session of talks and a working lunch, is aimed at keeping the difficult U.S. relationship with China stable and preventing it from veering inadvertently into conflict. read more

“There is no substitute for face to face … diplomacy, and in a relationship as complex and consequential as the one between the United States and China there is a lot to talk about,” Blinken told reporters at the beginning of the meeting.

Register now for FREE unlimited access to Reuters.com

Register

“We very much look forward to a productive and constructive conversation,” he said.

Blinken is expected to repeat warnings to China not to support Russia’s war in Ukraine and the two sides will address contentious issues that include Taiwan, China’s extensive South China Sea claims, its expansion of influence in the Pacific, human rights, and trade tariffs.

However, both sides share an interest in keeping the relationship stable and Blinken and U.S. officials say President Joe Biden and Chinese President Xi Jinping are expected to speak again in coming weeks, something Saturday’s meeting is likely to address.

“China and the United States are two major countries, so it is necessary for the two countries to maintain normal exchanges,” Wang told reporters.

“At the same time, we do need to talk together to ensure that this relationship will continue to move forward along the right track,” Wang said.

Daniel Russel, a top U.S. diplomat for East Asia under former President Barack Obama who has close contact with Biden administration officials, said he believed a key aim for the meeting would be to explore the possibility of an in-person meeting between Biden and Xi, their first as leaders, possibly on the sidelines of a G20 summit in Bali in November.

The United States calls China its main strategic rival and is concerned it might one day attempt to take over the self-ruled democratic island of Taiwan, just as Russia attacked Ukraine.

The top U.S. diplomat for East Asia, Daniel Kritenbrink, said on Tuesday he expected a “candid” exchange with Wang and said it would be another opportunity “to convey our expectations about what we would expect China to do and not to do in the context of Ukraine”.

Shortly before Russia’s Feb. 24 Ukraine invasion, Beijing and Moscow announced a “no limits” partnership. But U.S. officials have said they have not seen China evade tough U.S.-led sanctions on Russia or provide it with military equipment.

However, China has declined to condemn Russia’s actions and it has criticized the sweeping sanctions.

U.S. officials have warned of consequences, including sanctions, should China start offering material support for Russia’s war effort, which it calls a “special military operation” to degrade the Ukrainian military though Kyiv counters that it is an imperial-style land grab.

Despite their strategic rivalry, the world’s two largest economies remain major trading partners and Biden has been considering scrapping tariffs on a range of Chinese goods to curb surging U.S. inflation before the November midterm elections, with control of Congress in focus. read more

(This story has been refiled to edit headline to show first in person talks)

Register now for FREE unlimited access to Reuters.com

Register

Additional reporting by Ryan Woo in Beijing; Writing by Ed Davies; Editing by Christian Schmollinger, Robert Birsel

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

G7 to hike sanctions on Russia, nears oil price cap deal

  • G7 to announce new Russia sanctions on Tuesday – U.S. official
  • G7 to work with other countries, private sector on oil price cap
  • Japan tries to cut zero-emission vehicles goal from G7 statement

SCHLOSS ELMAU, Germany, June 27 (Reuters) – The Group of Seven rich democracies will commit on Tuesday to a new package of coordinated actions meant to raise pressure on Russia over its war in Ukraine, and will finalise plans for a price cap on Russian oil, a senior U.S. official said on Monday.

The announcement came as the White House said Russia had defaulted on its foreign sovereign bonds for the first time in decades – an assertion Moscow rejected – and as Ukrainian President Volodymyr Zelenskiy spoke virtually with G7 leaders meeting at an alpine resort in southern Germany. read more

Zelenskiy asked leaders of the Group of Seven leading industrial democracies for a broad range of military, economic and diplomatic support, according to a European official.

Register now for FREE unlimited access to Reuters.com

Register

G7 nations, which generate nearly half the world’s economic output, want to crank up pressure on Russia without stoking already soaring inflation that is causing strains at home and savaging the global south.

The price cap could hit Russian President Vladimir Putin’s war chest while actually lowering energy prices.

“The dual objectives of G7 leaders have been to take direct aim at Putin’s revenues, particularly through energy, but also to minimize the spillovers and the impact on the G7 economies and the rest of the world,” the U.S. official said on the sidelines of the annual G7 summit.

G7 leaders would also make an “unprecedented, long-term security commitment to providing Ukraine with financial, humanitarian, military and diplomatic support as long as it takes”, including the timely provision of advanced weapons, the White House said in a fact sheet.

Western sanctions have hit Russia’s economy hard and the new measures are aimed at further depriving the Kremlin of oil revenues. G7 countries would work with others – including India – to limit the revenues that Putin can continue to generate, the U.S. official said.

India’s Prime Minister Narendra Modi is one of the five leaders of guest nations joining the G7 for talks on climate change, energy, health, food security and gender equality on the second day of the summit.

“Since it is a mechanism that could benefit third countries more than Europe,” one EU official said. “These countries are asking questions about the feasibility, but in principle to pay less for energy is a very popular theme.”

TARGETING RUSSIAN GOLD, DEFENCE SECTOR

A U.S. official said news that Russia defaulted on its foreign sovereign bonds for the first time since the Bolshevik revolution in 1917 showed how effective Western sanctions have been.

“This morning’s news around the finding of Russia’s default, for the first time in more than a century, situates just how strong the actions are that the U.S., along with allies and partners, have taken, as well as how dramatic the impact has been on Russia’s economy,” the official added.

The Kremlin, which has the funds to make payments thanks to rich energy revenues, swiftly rejected the U.S. statement, accusing the West of driving it into an artificial default. read more

New sanctions planned by the G7 countries will target Moscow’s military production, crack down on its gold imports and target Russian-installed officials in contested areas. read more

The G7 leaders would task their governments to work intensively on how to implement the Russian price cap, working with countries around the world and stakeholders including the private sector, the official said.

The United States said it would also implement sanctions on hundreds of individuals and entities adding to the more than 1,000 already sanctioned, target companies in several countries and impose tariffs on hundreds of Russia products. read more

The agencies involved would release details on Tuesday to minimize any flight risk, a second senior administration official said.

The Ukraine crisis has detracted attention from another crisis – that of climate change – originally set to dominate the summit. Activists fear Western nations are watering down their climate ambitions as they scramble to find alternatives to Russian gas imports and rely more heavily on coal, a dirtier fossil fuel, instead.

Japan is also pushing to remove a target for zero-emission vehicles from a G7 communique expected this week, according to a proposed draft seen by Reuters. read more

Register now for FREE unlimited access to Reuters.com

Register

Reporting by Andrea Shalal and Sarah Marsh, Additional Reporting by Angelo Amante, Phil Blenkinsop; Editing by Thomas Escritt, Mark Heinrich and Alex Richardson

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

G7 aims to raise $600 billion to counter China’s Belt and Road

U.S. President Joe Biden attends a working lunch with other G7 leaders to discuss shaping the global economy at the Yoga Pavilion, Schloss Elmau in Kuren, Germany, June 26, 2022. Kenny Holston/Pool via REUTERS

Register now for FREE unlimited access to Reuters.com

Register

SCHLOSS ELMAU, Germany, June 26 (Reuters) – Group of Seven leaders on Sunday pledged to raise $600 billion in private and public funds over five years to finance needed infrastructure in developing countries and counter China’s older, multitrillion-dollar Belt and Road project.

U.S. President Joe Biden and other G7 leaders relaunched the newly renamed “Partnership for Global Infrastructure and Investment,” at their annual gathering being held this year at Schloss Elmau in southern Germany.

Biden said the United States would mobilize $200 billion in grants, federal funds and private investment over five years to support projects in low- and middle-income countries that help tackle climate change as well as improve global health, gender equity and digital infrastructure.

Register now for FREE unlimited access to Reuters.com

Register

“I want to be clear. This isn’t aid or charity. It’s an investment that will deliver returns for everyone,” Biden said, adding that it would allow countries to “see the concrete benefits of partnering with democracies.”

Biden said hundreds of billions of additional dollars could come from multilateral development banks, development finance institutions, sovereign wealth funds and others.

Europe will mobilize 300 billion euros for the initiative over the same period to build up a sustainable alternative to China’s Belt and Road Initiative scheme, which Chinese President Xi Jinping launched in 2013, European Commission President Ursula von der Leyen told the gathering.

The leaders of Italy, Canada and Japan also spoke about their plans, some of which have already been announced separately. French President Emmanuel Macron and British Prime Minister Boris Johnson were not present, but their countries are also participating.

China’s investment scheme involves development and programs in over 100 countries aimed at creating a modern version of the ancient Silk Road trade route from Asia to Europe.

White House officials said the plan has provided little tangible benefit for many developing countries.

Biden highlighted several flagship projects, including a $2 billion solar development project in Angola with support from the Commerce Department, the U.S. Export-Import Bank, U.S. firm AfricaGlobal Schaffer, and U.S. project developer Sun Africa.

Together with G7 members and the EU, Washington will also provide $3.3 million in technical assistance to Institut Pasteur de Dakar in Senegal as it develops an industrial-scale flexible multi-vaccine manufacturing facility in that country that can eventually produce COVID-19 and other vaccines, a project that also involves the EU.

The U.S. Agency for International Development (USAID) will also commit up to $50 million over five years to the World Bank’s global Childcare Incentive Fund.

Friederike Roder, vice president of the non-profit group Global Citizen, said the pledges of investment could be “a good start” toward greater engagement by G7 countries in developing nations and could underpin stronger global growth for all.

G7 countries on average provide only 0.32% of their gross national income, less than half of the 0.7% promised, in development assistance, she said.

“But without developing countries, there will be no sustainable recovery of the world economy,” she said.

Register now for FREE unlimited access to Reuters.com

Register

Reporting by Andrea Shalal; Editing by Mark Porter and Lisa Shumaker

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Britain to defy EU with ‘relatively trivial’ N.Ireland law

  • UK to set out legislation on Monday
  • Move risks triggering trade dispute with EU
  • EU says unilateral action will break international law
  • Ireland accuses UK of a new low

LONDON, June 13 (Reuters) – Britain will set out plans on Monday to override some of the post-Brexit trade rules for Northern Ireland, scrapping checks and challenging the role played by Brussels in a fresh clash with the European Union.

As Ireland warned of a “new low” from London and Brussels talked of damage to trust, British Prime Minister Boris Johnson vowed to plough ahead, saying the “relatively trivial” steps were needed to improve trade and simplify bureaucracy.

Tensions have been simmering for months after Britain accused the bloc of taking a heavy handed approach to the movement of goods between Britain and Northern Ireland – checks that were needed to keep an open border with EU-member Ireland.

Register now for FREE unlimited access to Reuters.com

Register

Always the toughest part of the Brexit deal to crack, the situation in the region has sent alarm bells ringing in European capitals and Washington, and among business leaders.

It has also heightened political tensions, with pro-British communities saying their place in the United Kingdom is being eroded.

A power-sharing administration has broken down and the Democratic Unionist Party (DUP) said it would only return to parliament if it is sure the bill will become law. read more

The new legislation comes as the UK faces its toughest economic conditions in decades, with inflation forecast to hit 10% and growth stalling. Johnson said any talk of a retaliatory trade war by Brussels would be a “gross, gross overreaction”.

“All we are trying to do is have some bureaucratic simplifications between Great Britain and Northern Ireland,” he told LBC Radio.

NEW CLASH

Britain has been threatening for months to rip up the protocol, an agreement that kept the region under EU rules and forced an effective customs border between Northern Ireland and the rest of the UK to prevent a back door from opening up into the EU’s vast single market.

Under the legislation, London is expected to introduce a “green channel” for goods moving from Britain just to Northern Ireland, change the tax rules and end the role of the European Court of Justice as sole arbiter.

The bill, which will be presented to parliament by Foreign Secretary Liz Truss, could take around a year to pass. It comes as Johnson seeks to recover from a large rebellion against his leadership by winning back the support of lawmakers, including those who want a tough stance against Brussels.

The legislation, like Brexit itself, has split legal and political opinion, with supporters of the UK’s divorce saying it does not go far enough and critics saying it undermines London’s standing in the world by challenging an international agreement.

Truss told European Commission vice-president, Maros Sefcovic, that London was still open to a “negotiated solution”. He said any unilateral action damaged trust. read more

Brussels believes any unilateral change may breach international law. It could launch legal action or eventually review the terms of the free trade deal it agreed with Britain.

EU officials have said that Britain will not be allowed to join its 95 billion euro Horizon Europe research programme until outstanding disputes, notably Northern Ireland, are resolved.

U.S. House of Representatives Speaker Nancy Pelosi has also said there will be no U.S.-UK trade deal if London scraps the protocol.

Register now for FREE unlimited access to Reuters.com

Register

Additional reporting by Paul Sandle, Andrew MacAskill and Kylie MacLellan; Editing by Louise Heavens, Mark Potter and Ed Osmond

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Yellen says inflation to stay high, Biden likely to up forecast

WASHINGTON, June 7 (Reuters) – U.S. Treasury Secretary Janet Yellen told senators on Tuesday that she expected inflation to remain high and the Biden administration would likely increase the 4.7% inflation forecast for this year in its budget proposal.

During a Senate Finance Committee hearing, Yellen said that the United States was dealing with “unacceptable levels of inflation,” but that she hoped price hikes would soon begin to subside.

U.S. Consumer Price Index inflation has been tracking above 8% in recent months, the highest readings in over 40 years and well above President Joe Biden’s administration’s forecast for its fiscal 2023 budget.

Register now for FREE unlimited access to Reuters.com

Register

But another metric, the core Personal Consumption Expenditures price index excluding volatile food and energy costs, has begun to cool, edging down to 4.9% in April read more

“I do expect inflation to remain high although I very much hope that it will be coming down now,” she said.

Yellen repeatedly rejected Republican assertions that inflation was being fueled by Biden’s $1.9 trillion American Rescue Plan (ARP) COVID-19 spending legislation last year.

“We’re seeing high inflation in almost all of the developed countries around the world. And they have very different fiscal policies,” Yellen said. “So it can’t be the case that the bulk of the inflation that we’re experiencing reflects the impact of the ARP.”

The Biden administration is still pushing for a scaled-back version of its stalled climate and social spending agenda, which would offer tax credits for clean energy technologies and reform prescription drug pricing – policies that Yellen argued would help lower expenses for American consumers weary of price hikes.

Yellen repeated her views that inflation was being fueled by high energy and food prices caused by Russia’s war in Ukraine, a shift to goods purchases during the pandemic, and by new COVID-19 variants and persistent supply chain disruptions.

‘TRANSITORY’ WRONG WORD

Yellen has come under fire from Republicans after acknowledging she was wrong last year in forecasting that inflation would be transitory and quickly subside. She will face more tough questions on the issue in a House Ways and Means Committee hearing on Wednesday. read more

Yellen added that both she and Federal Reserve Chair Jerome Powell both “probably could have used a better term than transitory” in describing inflation that they thought would fade quickly.

“When I said that inflation would be transitory, what I was not anticipating was a scenario in which we would end up contending with multiple variants of COVID that would be scrambling our economy and global supply chains, and I was not envisioning impacts on food and energy prices we’ve seen from Russia’s invasion of Ukraine,” Yellen said.

She testified as the World Bank on Tuesday warned of a heightened risk of “stagflation” – the 1970s mix of feeble growth and high inflation – returning as it slashed its global growth forecast by nearly a third to 2.9% for 2022. read more

Register now for FREE unlimited access to Reuters.com

Register

Reporting by David Lawder and Andrea Shalal;
Editing by Jonathan Oatis, Andrea Ricci and Howard Goller

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

U.S. senators try to avoid weeks-long delay in Russia trade measure

WASHINGTON, March 29 (Reuters) – U.S. senators scrambled on Tuesday to reach a compromise to avoid further delays before passing legislation revoking “most favored” trade status for Russia and Belarus over the invasion of Ukraine, after Republican lawmakers blocked efforts to pass it quickly.

Senate Democratic Majority Leader Chuck Schumer told reporters that Democratic Senator Ben Cardin and Republican Senator Rand Paul were trying to reach a compromise that would let the measure pass quickly, rather than through “regular order,” a process that could take weeks.

The bill stalled in the Senate despite lawmakers’ insistence that they want to show a united front in supporting the government in Kyiv, more than a month into the Russian invasion.

Register now for FREE unlimited access to Reuters.com

Register

Under U.S. law, Congress must approve the change in trade status.

The legislation has strong bipartisan support, having passed the House of Representatives by an overwhelming 424-8 earlier this month.

But in the Senate, it got ensnared in partisan fighting, first over Russian oil imports and more recently over abortion rights. read more

The measure passed by the House also reauthorizes the Global Magnitsky Human Rights Accountability Act, authored by Cardin, which allows the imposition of sanctions over human rights violations.

But the reauthorization has a slight change in wording. It now addresses “serious” human rights violations, having previously addressed “gross” ones.

The new Magnitsky language came from a 2017 executive order from former Republican President Donald Trump. But Paul argued that the new language in the bill gives too much power to a president to impose sanctions over human rights abuses, including that it could be used to sanction anyone who denied a woman access to an abortion.

Backers of the legislation dispute this.

Register now for FREE unlimited access to Reuters.com

Register

Reporting by Patricia Zengerle;
Editing by Alistair Bell

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Pressed to choose sides on Ukraine, China trade favors the West

WASHINGTON, March 21 (Reuters) – U.S. President Joe Biden’s warning of “consequences” for any aid China may give to Russia’s Ukraine war effort could force Chinese President Xi Jinping to choose between a longstanding lucrative trade relationship with the West and a growing strategic partnership with Moscow.

Based on trade flows alone, Beijing has a lot at stake following Biden’s nearly two-hour video call with Xi on Friday, with the White House confirming that sanctions on China were an option. read more

Despite growing trade ties to Southeast Asia and an economy that is less dependent on trade over the past decade, China’s economic interests remain heavily skewed to Western democracies, trade data reviewed by Reuters showed.

Register now for FREE unlimited access to Reuters.com

Register

Siding with political ally Russia would make little economic sense for China, according to analysts, as the United States and European Union still consume more than a third of China’s exports.

“On the pure economic question, if China were to have to make the choice – Russia versus everyone else – I mean, it’s a no-brainer for China because it’s so integrated with all of these Western economies,” said Chad Bown, a senior fellow at the Washington-based Peterson Institute for International Economics think tank who tracks China trade closely.

China’s ambassador to the United States, Qin Gang, on Sunday emphasized China’s close relationship with Russia.

“China has normal trade, economic, financial, energy cooperations with Russia,” Qin told the CBS program “Face the Nation” when asked if Beijing would provide financial support to Moscow. “These are normal business between two sovereign countries, based on international laws, including WTO (World Trade Organization) rules.”

Targeting Beijing with the type of broad economic sanctions that have been imposed on Russia would have potentially serious consequences for the United States and globally, given that China is the world’s second-largest economy and the largest exporter. As China’s economy has ballooned to $16 trillion in the past 20 years, its dependence on trade with other countries for its economic well-being has diminished.

Reuters Graphics Reuters Graphics

As Chinese citizens become wealthier, domestic consumption and services are playing a bigger share in China’s economy.

However, China is still more dependent on trade, at about 35% of GDP, than the United States at 23% or Japan at 31%.

The wealthy G7 countries that form the heart of an anti-Russia alliance following last month’s invasion of Ukraine still consume more than a third of China’s exports. That is a drop from almost half of China’s exports nearly two decades ago, but a relatively steady share since 2014, when Russia annexed Ukraine’s Crimea region.

Reuters Graphics

The share of China’s exports to Association of Southeast Asian Nations (ASEAN) countries, with which China recently has forged new trade agreements, has doubled to about 15%, eclipsing Japan in importance. But China’s January-February 2022 trade data showed that exports to the European Union grew the most at 24%. read more

OIL FOR CELLPHONES

Russia’s overall trade with China has grown since the West first imposed sanctions on Moscow in response to its annexation of Crimea. read more

But China’s exports to Russia have remained between 1% and 2% for the past 20 years.

Russian imports from China track those of many other countries, with electronics and consumer goods including cellphones, computers, apparel, toys and footwear topping the list.

Reuters Graphics Reuters Graphics

China exported 10 times as many cellphones, by value, to the United States alone, at $32.4 billion in 2020, based on UN Comtrade data.

China’s imports from Russia are dominated by oil. At $27 billion in 2020, crude oil and other petroleum dwarfs all other imports from Russia, mainly commodities including copper, softwood lumber, liquefied natural gas, coal, metals and ores.

Reuters Graphics

Although the United States has banned Russian energy imports, Western sanctions have not specifically targeted Russia’s oil and gas exports. But the U.S.-led sanctions on Russian banks that prohibit dollar transactions have hampered China’s ability to provide trade finance for oil Russian oil cargoes.

Register now for FREE unlimited access to Reuters.com

Register

Reporting by David Lawder; Editing by Will Dunham and Heather Timmons

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

China faces consequences if it helps Russia evade sanctions, U.S. says

WASHINGTON, March 13 (Reuters) – U.S. National Security Adviser Jake Sullivan, who is due to meet with China’s top diplomat Yang Jiechi in Rome on Monday, warned Beijing it would “absolutely” face consequences if it helped Moscow evade sweeping sanctions over the war in Ukraine.

Russia asked China for military equipment after its Feb. 24 invasion of Ukraine, sparking concern in the White House that Beijing may undermine Western efforts to help Ukrainian forces defend their country, several U.S. officials said.

Sullivan plans in his meeting with Yang to make Washington’s concerns clear while mapping out the consequences and growing isolation China would face globally if it increases its support of Russia, one U.S. official said, without providing details.

Register now for FREE unlimited access to Reuters.com

Register

Asked about Russia’s request for military aid, first reported by the Financial Times, Liu Pengyu, spokesperson for China’s embassy in Washington, said: “I’ve never heard of that.”

He said China found the current situation in Ukraine “disconcerting” and added: “We support and encourage all efforts that are conducive to a peaceful settlement of the crisis.”

Liu said “utmost efforts should be made to support Russia and Ukraine in carrying forward negotiations despite the difficult situation to produce a peaceful outcome.”

Sullivan told CNN on Sunday that Washington believed China was aware Russia was planning some action in Ukraine before the invasion took place, although Beijing may not have understood the full extent of what was planned.

After the invasion began, Russia sought both military equipment and support from China, the U.S. officials said.

Sullivan told CNN Washington was watching closely to see to what extent Beijing provided economic or material support to Russia, and would impose consequences if that occurred.

“We are communicating directly, privately to Beijing, that there will absolutely be consequences for large-scale sanctions evasion efforts or support to Russia to backfill them,” Sullivan said. “We will not allow that to go forward and allow there to be a lifeline to Russia from these economic sanctions from any country, anywhere in the world.”

The meeting, planned for some time, is part of a broader effort by Washington and Beijing to maintain open channels of communication and manage competition between the world’s two largest economies, a senior Biden administration official said.

No specific outcomes were expected, the source added, speaking on condition of anonymity.

Chinese foreign ministry spokesman Zhao Lijian said the meeting’s focus was to “implement the important consensus” reached during the virtual meeting held between Chinese President Xi Jinping and U.S. President Joe Biden in November, which discussed “strategic stability” and arms control issues. read more

U.S. White House National Security Advisor Jake Sullivan speaks to the news media about the situation in Ukraine during a daily press briefing at the White House in Washington, U.S., February 11, 2022. REUTERS/Leah Millis/File Photo

The two sides will exchange views on U.S.-China relations as well as international and regional issues of common concern, he said in a statement published on the ministry’s website.

Wang Huiyao, head of a Beijing think tank and adviser to the Chinese government, warned of “an escalatory spiral” in a column published in the New York Times on Sunday, and said China was “uniquely positioned to act as a neutral mediator between a Western-supported Ukraine and Russia” to end the war.

“Unpalatable as some in the West may find the idea, it is time to offer the Russian leader an off-ramp with China’s help,” Wang wrote.

U.S. officials were skeptical about the proposal given China’s ties to Russia and its spreading of misinformation related to the war.

CHINA, RUSSIA TRADE TIES

The United States on Saturday said it would rush up to $200 million worth of additional weapons to Ukrainian forces as they try to defend against Russian shelling in the largest war in Europe since World War Two. read more

Washington and its allies have imposed sweeping, unprecedented sanctions against Russia and banned its energy imports, while providing billions of dollars of military and humanitarian assistance to Ukraine. read more

Individually and together they have appealed to China, Gulf nations and others that have failed to condemn the Russian invasion to join in isolating Russia from the global economy.

Beijing, a key trading partner of Russia, has refused to call Russia’s actions an invasion, although Xi last week did call for “maximum restraint” in Ukraine after a virtual meeting with German Chancellor Olaf Scholz and French President Emmanuel Macron. read more

Xi also expressed concern about the impact of sanctions on global finance, energy supplies, transportation and supply chains, amid growing signs that Western sanctions are limiting China’s ability to buy Russian oil. read more

However, Hu Xijin, former editor-in-chief of the state-backed Chinese Global Times newspaper, said on Twitter: “If Sullivan thinks he can persuade China to participate in sanctions against Russia, he will be disappointed.”

While in Rome, Sullivan will also meet with Luigi Mattiolo, diplomatic adviser to Italian Prime Minister Mario Draghi, to continue coordinating the strong global response to Russian President Vladimir Putin’s “war of choice,” the U.S. official said.

Washington and the Group of Seven advanced economies on Friday ratcheted up pressure on Russia by calling for revoking its “most favored nation” trade status, which would allow them to jack up tariffs on Russian goods. read more

Trade made up about 46% of Russia’s economy in 2020, much of that with China, its biggest export destination.

Register now for FREE unlimited access to Reuters.com

Register

Reporting by Andrea Shalal, Michael Martina, David Brunnstrom and Costas Pitas; additional reporting by Ismail Shakil and Brenda Goh; Editing by Sandra Maler, Marguerita Choy, Heather Timmons, Cynthia Osterman and Lincoln Feast.

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

U.S. adds e-commerce sites operated by Tencent, Alibaba to ‘notorious markets’ list

Feb 17 (Reuters) – E-commerce sites operated by China’s Tencent Holdings Ltd (0700.HK) and Alibaba Group Holding Ltd (9988.HK) were included on the U.S. government’s latest “notorious markets” list, the U.S. Trade Representative’s office said on Thursday.

The list identifies 42 online markets and 35 physical markets that are reported to engage in or facilitate substantial trademark counterfeiting or copyright piracy.

“This includes identifying for the first time AliExpress and the WeChat e-commerce ecosystem, two significant China-based online markets that reportedly facilitate substantial trademark counterfeiting,” the USTR office said in a statement.

Register now for FREE unlimited access to Reuters.com

Register

China-based online markets Baidu Wangpan, DHGate, Pinduoduo, and Taobao also continue to be part of the list, along with nine physical markets located within China “that are known for the manufacture, distribution, and sale of counterfeit goods,” the USTR office said.

Alibaba said it will continue working with government agencies to address concerns in intellectual property protection across its platforms.

Tencent said it strongly disagreed with the decision and was “committed to working collaboratively to resolve this matter”. It added it actively monitored, deterred and acted upon violations across its platforms and had invested significant resources into intellectual property rights protection.

Inclusion on the list is a blow to the reputation of companies but carries no direct penalties.

Industry bodies including the American Apparel and Footwear Association (AAFA) and the Motion Picture Association welcomed the release of the report by the USTR.

The USTR office said in a separate report released on Wednesday the United States needs to pursue new strategies and update its domestic trade tools to deal with China’s “state-led, non-market policies and practices.”

The United States and China have been engaged in trade tensions for years over issues like tariffs, technology and intellectual property, among others.

The United States has said China had failed to make good on some commitments under a so-called “Phase 1” trade agreement signed by the administration of former President Donald Trump. read more

Register now for FREE unlimited access to Reuters.com

Register

Reporting by Kanishka Singh in Bengaluru; Editing by Sandra Maler and Lincoln Feast.

Our Standards: The Thomson Reuters Trust Principles.

Read original article here