Jreng! Welcome back to the US-China trade war



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Jakarta, CNBC Indonesia – The trade war between the two world economic rulers is not over. It even looks like a new episode is about to begin.

Despite a phase I trade peace agreement signed in January, the United States is again launching a new attack on Chinese commodities. On this occasion, the US Customs and Border Protection (CBP) will block imports of cotton and tomato products from China’s Xinjiang region in western China.

Not only that, it will also ban the entry of its derived products, including cotton yarn, textiles, clothing and tomato paste, and other products. This was done due to allegations that the product was produced by Chinese forced labor of Uighur Muslims in the province.

The rule initially went into effect on September 8. But now it has been postponed to next week.

The CBP spokesperson said the rule was called “Detention Release Warrant.” In the US, you can withhold shipments under the guise of laws that combat human trafficking, child labor, and other human rights violations.


FILE - In this Monday, Dec. 3, 2018 file photo, a watchtower and barbed wire fences are seen around a facility at the Kunshan Industrial Park in Artux, in China's western Xinjiang region.  This is one of a growing number of internment camps in the Xinjiang region, where, according to some estimates, 1 million Muslims are detained, forced to abandon their language and religion and subjected to political indoctrination.  Highly confidential blueprint documents leaked to a consortium of news organizations expose the Chinese government's deliberate strategy of locking up ethnic minorities to reconfigure their thoughts and even the language they speak (Photo / AP File).Photo: Appearance of Artux City Vocational Skills Education Training Service Center in Xianjing, China, on December 3, 2018 (Photo / AP File)
FILE – In this Monday, Dec. 3, 2018 file photo, a watchtower and barbed wire fences are seen around a facility at the Kunshan Industrial Park in Artux, in China’s western Xinjiang region. This is one of a growing number of internment camps in the Xinjiang region, where, according to some estimates, 1 million Muslims are detained, forced to abandon their language and religion and subjected to political indoctrination. Highly confidential blueprint documents leaked to a consortium of news organizations expose the Chinese government’s deliberate strategy of locking up ethnic minorities to reconfigure their thoughts and even the language they speak (Photo / AP File).

The Trump administration has previously increased pressure on China over its treatment of Xinjiang Uighur Muslims. The United Nations (UN) says it has credible reports that 1 million Muslims have been detained in camps in the region, where they are called Chinese labor.

China denies the persecution of Uyghur Muslims, saying that some of the camps are vocational training centers. According to China, the country needs to fight extremism.

“We have evidence … that there is a risk of forced labor in the supply chain associated with cotton and tomato textiles coming out of Xinjiang. We will continue to carry out our investigations to fill that gap,” the assistant commissioner told Reuters. from CBP, Brenda Smith. quoted on Wednesday (9/9/2020).

United States law requires the agency to hold shipments if forced labor is suspected. Even if it is from a non-governmental organization. The ban could have far-reaching implications for US clothing retailers and manufacturers, as well as for food producers.

China produces about 20% of the world’s cotton and most of it comes from Xinjiang. In March, US lawmakers proposed a law that would effectively mean that all goods produced in Xinjiang are made through forced labor. It even requires a certification if you want to enter the US.

In July, Washington issued a warning saying that companies doing business in Xinjiang using labor from the region could be exposed to legal, economic and reputational risks.

The State Department also said it had sent letters to major US companies, including Walmart Inc, Apple Inc, and Amazon.com Inc, warning them of the risks facing maintaining supply chains related to human rights abuses in the United States. the Xinjiang region.

In a draft announcement seen by Reuters, CBP said it had identified indicators of forced labor involving the supply chains of cotton, textiles and tomatoes. These include debt bondage, precarious movements, isolation, intimidation and threats, pay cuts, abusive living and working conditions.

Uncouple AS-China

Earlier in the US presidential campaign, Trump again raised the idea of ​​separating the US and Chinese economies (decoupling).

This is done so that the United States does not lose money if the world’s two largest economies stop doing business.

“So when you say the word uncouple, it’s an interesting word,” Trump said at a Labor Day press conference at the White House on Monday (9/8/2020).

“We lost billions of dollars, and if we didn’t do business with them, we wouldn’t lose billions of dollars. That’s called untying, so you’ll start thinking about it.”

This idea came up before the presidential elections on November 3. Trump has previously praised the friendly relations with Chinese President Xi Jinping, although in his campaign he will be tough on China if he is re-elected.

Trump also accused his Democratic opponent, Joe Biden, of being lenient with China if elected.

“If Biden wins, China wins, because China will rule this country,” Trump said.

In fact, this idea has also been discussed by the Trump administration. Several companies have been warned to stop manufacturing in China.

[Gambas:Video CNBC]

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