China's Foreign Minister Wang Yi
Workers are putting the finishing touches on a Beijing-funded boulevard designed to showcase Papua New Guinea’s (PNG) capital to visiting world leaders at this month’s Asia-Pacific Economic Cooperation forum.
Critics say the six-lane road - complete with wide, illuminated footpaths - is emblematic of a regional power play whereby donor countries vie for influence with show-stopper gifts, even as deeper problems plague the Pacific nation.
Australia, PNG’s traditional partner and a close Washington ally, is lifting aid and has plowed more than A$120 million ($86.5 million) into APEC, seeking to keep its sway over its neighbor.
Allan Bird, a parliamentarian and governor of PNG’s second largest province, said the boulevard outside parliament house had little practical benefit.
“Whatever the Chinese government spent on it, it could have been better spent somewhere else, buying medicine or building a school,” Bird told Reuters.
China and the United States can overcome their differences and get relations back on track if they work together in a spirit of mutual respect, Chinese Premier Li Keqiang told a group of visiting U.S. politicians on Thursday.China and the United States are locked in an increasingly bitter trade war, with both countries have already placed tariffs on some of each others imports.Meeting a group of Republican senators and one congresswoman in Beijing, Li said that over the past four decades of diplomatic ties, the China-U.S. relationship has had its "share of ups and downs"."The sound and stable growth of China-U.S. relations serves the common interests and the fundamental interests of the people of our two countries," Li said.Australia to help PNG build a navy base to fend-off China"We do hope that China and the United States will meet each other halfway and work together in the spirit of mutual respect and equality," he added."In this way, our two countries will be able to overcome differences and have the wisdom to overcome the obstacles and move our relationship forward on an even sounder track."Tennessee Senator Lamar Alexander told Li that the delegation was there "to show our respect to a great country and a great people"."Your country and our country are competitors but not adversaries. And we believe that with mutual respect we can continue to prosper together."Asian parliamentarians voice support for PalestineAlexander said he would be discussing trade with Li, though neither of them mentioned the ongoing tariff war in remarks in front of reporters.U.S. President Donald Trump has long threatened to impose tariffs on all $500 billion-plus goods imports from China if Beijing fails to meet his demands for sweeping changes to its policies on intellectual property, technology transfers, industrial subsidies and local market access.But Trump has not "set in stone" any decisions on escalating tariffs on Chinese goods and may withdraw some duties if there are promising policy discussions with China, White House economic adviser Larry Kudlow said on Wednesday.Both Trump and Chinese President Xi Jinping are due to attend the G20 summit in Argentina which starts at the end of this month, and could hold talks there.Trump said in a television interview on Monday he thinks there will be "a great deal" with China on trade, but warned that he has billions of dollars worth of new tariffs ready to go if a deal isn't possible.The United States has already imposed tariffs on $250 billion worth of Chinese goods, and China has responded with retaliatory duties on $110 billion worth of U.S. goods. 
Amid trade war, China premier says Sino-US ties can improve
Pakistani Prime Minister Imran Khan will pay a five-day visit to the Chinese capital of Beijing on Thursday, according to the Foreign Ministry.Khan's first official visit to China after assuming office in August will happen upon the invitation of the Chinese leadership.According to a statement by the Foreign Ministry, Khan will hold meetings with Chinese President Xi Jinping and Premier Li Keqiang and participate in the inauguration of the first China International Import Expo being held in Shanghai.Pakistani court acquits Christian woman of blasphemy"During the visit, the two sides will review the entire range of bilateral relations which have enjoyed a long history of mutual trust and mutual support, while the two sides will also sign several agreements and MoUs (memorandum of understanding) of cooperation in diverse fields," said Mohammad Faisal, spokesperson of the Foreign Ministry. Khan's visit is expected to provide further impetus to enhancing the existing strategic ties between Pakistan and China and break new grounds for broadening the bilateral partnership, Faisal said.Khan's visit to China -- Pakistan's "all weather" ally -- comes ahead of an IMF official's visit to Islamabad on Nov. 7 for a formal discussion on a bailout package for the cash-strapped country.
Pakistani premier to pay official visit to China
Australia is to help Papua New Guinea (PNG) develop a navy base, Prime Minister Scott Morrison said on Thursday, the latest Australian action to protect its interests in the Pacific in the face of a more assertive China.Australia has for decades enjoyed largely unrivalled influence in the Pacific but China has in recent years turned its attention to a region blessed with abundant natural resources.PNG said this year China was interested in funding the re-development of a navy base on Manus Island, an offer that diplomatic sources said worried Australia and its Western allies.Morrison said in a speech in Sydney Australia would fund the project.TPP to take effect following Australia’s ratification"I will formally commit to a joint initiative to develop the base on Manus Island," Morrison said.PNG's navy is made up largely of patrol boats and landing craft.Morrison did not say if Australia's navy would have access to the base.He also did not say how much Australia would spend on the base. Australia has in the past used its foreign aid budget to fund similar security projects in the region.Australia must assess security threats in 5G network: spy chiefAustralia said this year it will use part of a record allocation of aid for PNG to lay an undersea internet cable, assistance aimed at shutting out Chinese telecom giant Huawei Technologies Co Ltd amid national security concerns.Competition in the Pacific shows little sign of abating."Australia was particularly worried about China funding the port ... in a strategically important region," said a Western diplomat who declined to be identified as he is not authorised to speak to the media. 
Australia to help PNG build a navy base to fend-off China
Bird said such gifts put pressure on traditional partners such as Australia to place less restrictions around donated funds and refrain from criticizing PNG’s own spending, which controversially includes buying 40 Maseratis and three Bentleys for APEC.
“There is no transparency around the use of public finances,” Bird said.
“The government can turn to other donors and tell them to ‘toe the line or else we’ll be quite happy to take Chinese money’. They use it as leverage.”
The PNG government did not respond to questions on funding for the boulevard project or other aspects of APEC. PNG has previously thanked China for its infrastructure funding and aid, and denied Beijing had asserted any diplomatic pressure.
Chinese Foreign Ministry spokesman Lu Kang said people should be supportive of the PNG government’s efforts to promote regional economic integration by hosting the summit.
“At the request of the Papua New Guinea side, China has proactively provided support and help for the hosting, which I can tell you has been warmly welcomed by the Papua New Guinea government and people,” Lu told reporters in response to Reuters questions, without providing a figure.
Speaking in Port Moresby on Wednesday, the Chinese government’s top diplomat, State Councillor Wang Yi, said in recent years his country had helped build more than 100 projects in PNG and other Pacific island nations, including schools and hospitals, which these countries had greatly appreciated.
“Whether China’s aid is good or not, the governments and people of those countries being aided have the most right to speak,” Wang said, according to China’s Foreign Ministry.
China’s foreign ministry said on Friday that the previous day’s telephone call between Chinese President Xi Jinping and U.S. President Donald Trump was quite positive.The two heads of state think they should enhance trade relations, ministry spokesman Lu Kang told a daily news briefing.Trump asks officials to draft possible trade deal with China
China says Xi-Trump call was quite positive
U.S. President Donald Trump wants to reach an agreement with Chinese President Xi Jinping at the Group of 20 nations summit in Argentina later this month, Bloomberg reported on Friday, citing four people familiar with the matter.Trump has asked key U.S. officials to begin drafting potential terms, Bloomberg said https://bloom.bg/2RqfAUG, adding that the push for a possible deal with china was prompted by his telephone call with Chinese President Xi Jinping on Thursday.Trump and Xi both expressed optimism about resolving their bitter trade disputes ahead of a high-stakes meeting planned for the two leaders at the end of November in Argentina. Trump says had good talk with China's Xi on trade, North Korea
Trump asks officials to draft possible trade deal with China
U.S. President Donald Trump in a tweet on Thursday said he had a "very good" talk with Chinese President Xi Jinping on trade and North Korea and that the two planned to meet at the upcoming G-20 summit."Just had a long and very good conversation with President Xi Jinping of China. We talked about many subjects, with a heavy emphasis on Trade," Trump wrote. "Those discussions are moving along nicely with meetings being scheduled at the G-20 in Argentina. Also had good discussion on North Korea!" 
Trump says had good talk with China's Xi on trade, North Korea
Aiding And Indebting
If the region - pivotal in the Pacific battles of World War II - is a strategic treasure, PNG is one of its jewels.
It controls large swaths of ocean, is rich in mineral resources and is close to both U.S. military bases on the island of Guam and to Australia.
Formerly administered by Canberra, PNG has in recent years turned increasingly to China for financing as Beijing becomes a bigger player in the region.
PNG has the largest debt to China in the South Pacific, at almost $590 million, representing about one-quarter of its total external debt.
When world leaders arrive in the capital of Port Moresby for APEC, the contributions of donors will be obvious.
Australia will provide security personnel, naval patrol boats and a helicopter-docking ship; and the city will have an upgraded sewerage system care of the Japanese government.
Beijing has refurbished the show-piece convention center and gifted coaches, mini-buses and fire-engines.
China also rebuilt city’s main highway, which according to Moresby-based think tank the Institute of National Affairs, didn’t really need an upgrade.
The institute’s executive director, Paul Barker, said the resurfaced streets and new boulevard had little public benefit.
“It’s hard to imagine the boulevard will have any use other than marches or grand displays from time to time,” he said.
“It’s not really a road that goes from anywhere to anywhere.”
While the exact cost of each project is unclear, a Reuters analysis of PNG government announcements shows China’s total bill would be several tens of millions of dollars.
Australia’s A$120 million contribution to the event represents nearly a third of what Canberra spent when hosting world leaders for G20 in 2014.
Australian foreign aid to PNG is budgeted to hit a record A$572 million this year as Canberra diverts more capital to the Pacific at the expense of other regions.
On Thursday, Australia announced it would help fund a PNG navy base that China had expressed an interest in funding.
“Over the last year, we have seen Australia and New Zealand aggressively expand their focus on the Pacific, which is something we are very pleased about,” said a senior U.S. official, who spoke on condition of anonymity.
Australia’s Minister for Foreign Affairs Marise Payne declined to comment on Canberra’s funding for APEC. Australia has previously said it was “partnering” with PNG to showcase trade, tourism and investment opportunities.
A senior Trump administration official on Friday dismissed as untrue a media report that U.S. President Donald Trump was readying a possible trade deal with China, a CNBC reporter said in a post on Twitter."There is a long way to go," on negotiations, the unnamed official told CNBC's Eamon Javers, according to his tweet.NEW: A senior administration official tells me that the report president Trump is ready to cut a trade deal with China is not true. “There is a long way to go” on negotiations, the official said.— Eamon Javers (@EamonJavers) 2 Kasım 2018 Earlier on Friday, Bloomberg, citing people familiar with the matter, reported that Trump wanted to reach an agreement with Chinese President Xi Jinping and had asked key U.S. officials to begin drafting potential terms for a deal.Reuters could not immediately confirm either report, and White House officials did not immediately reply to a request for comment on the Bloomberg report.Still, world share markets soared on Friday amid growing hopes that the world's two largest economies are starting to repair their badly damaged trade relations following a conversation held by Trump and Xi on Thursday.The two spoke by telephone in what both sides described as an positive call, their first known direct discussion in several months. Trump, in a tweet after their talk, said he planned for the two leaders to meet at the G20 summit in Argentina later this month.Neither leader gave any details about possible progress.The Bloomberg News report said it was unclear if Trump was easing up on demands that China has resisted, and it cited one person as saying intellectual property theft was a sticking point on a possible deal.Hours after the call, the U.S. Justice Department accused another Chinese company of unfair practices, part of an across-the-board pressure campaign by the Trump administration targeting China.Trump administration officials have said U.S.-China trade talks cannot resume until Beijing outlines specific actions it would take to meet U.S. demands for sweeping changes to policies on technology transfers, industrial subsidies and market access.The two countries have imposed tariffs on hundreds of billions of dollars of each other's goods and Trump has threatened to extend the tariffs to the remainder of China's $500 billion-plus exports to the United States if the disputes cannot be resolved. Tesla seeks to reduce tariff impact for Model 3 by making cars in ChinaChina promises Pakistan support as Khan tells of 'very difficult' economyChina says Xi-Trump call was quite positive
US official denies report of possible China trade deal
Tesla Inc said on Friday that is developing plans to start producing about 3,000 Model 3 vehicles per week in Shanghai in the initial phase of its Gigafactory 3 to reduce the impact of tariffs.The company also said in a filing that Model S and Model X sales in China have been, and will likely continue to be, hurt by recently increased tariffs imposed by the Chinese government on U.S.-manufactured vehicles.The electric carmaker said it continues to push to increase Model 3 production to about 10,000 units per week.Tesla also expects to continue to increase its Model 3 production rate to about 7,000 units per week at its Fremont, California factory.China is the largest market for electric vehicles, and most forecasters predict that electric vehicle sales in the country will accelerate rapidly as government regulation drives toward a goal of 100-percent electric vehicles by 2030. US oil sanctions on Iran threaten 'paralyzed' economyChina promises Pakistan support as Khan tells of 'very difficult' economyChina says Xi-Trump call was quite positive
Tesla seeks to reduce tariff impact for Model 3 by making cars in China
China promised to support Pakistan's economy on Friday as new Pakistani Prime Minister Imran Khan told of his country's "very difficult" economic situation amid a burgeoning financial crisis.Pakistan's foreign reserves have plunged 42 percent since the start of the year and now stand at about $8 billion, or less than two months of import cover.Last month, Pakistan received a $6 billion rescue package from Saudi Arabia, but officials say it is not enough and the country still plans to seek a bailout from the International Monetary Fund (IMF) to avert a balance of payments crisis.It would be Pakistan's 13th rescue package from the multilateral lender since the late 1980s.Pakistan: Talks falter, more Aasia Bibi protests loomMeeting Chinese President Xi Jinping in Beijing's Great Hall of the People, Khan said he'd come to China to learn."My party has only been in power for two months. Unfortunately we have inherited a very difficult economic situation," Khan said."Countries go in cycles. They have their high points, they have their low points. Unfortunately, our country is going through a low point at the moment with two very big deficits, a fiscal deficit and a current account deficit. And so we, as I’ve said, have come to learn."Xi told Khan that he highly valued the two country's relations, reaffirming they were "all-weather" friends.Video: Imran Khan meets China's Xi in first official visit to Beijing"I attach great importance to China-Pakistan relations and am willing to work together with the prime minister to strengthen the China-Pakistan all-weather strategic partnership and build a new era of China-Pakistan destiny," Xi said.Neither man mentioned any economic aid in comments made in front of reporters.However, the Chinese government's top diplomat, State Councillor Wang Yi, told Pakistani Foreign Minister Shah Mahmood Qureshi in a separate meeting that China would not let Pakistan down."The Chinese side will continue to provide support and help to the best of its ability for Pakistan's economic and social development and national construction," China's Foreign Ministry cited Wang as saying, without giving details.Khan will meet Chinese Premier Li Keqiang on Saturday, when the two countries are expected to sign a series of agreements.Though China is Pakistan's closest ally, Khan's newly elected government has sought to re-think the two countries' signature project, the $60 billion China-Pakistan Economic Corridor (CPEC), which Beijing touts as the flagship infrastructure programme in its vast Belt and Road Initiative.Pakistan has sought to amend CPEC to put greater emphasis on projects that focus on social development, rather than purely on infrastructure.After visiting Beijing, Khan is set to be a key note speaker at a major import fair in Shanghai, an event being touted by China as an opportunity to show the world the country welcomes foreign companies and their products.Khan is in China amid unrest at home over the acquittal of a Pakistani Christian woman on death row for blasphemy, which has prompted an ultra-Islamist party to block roads in protest. 
China promises Pakistan support as Khan tells of 'very difficult' economy
The Fast And The Furious
“(PNG Prime Minister) Peter O’Neill sees APEC as putting PNG on the world stage,” a British official told Reuters. “If a donor wants to win favor with O’Neill, assisting with APEC is the way to do it.”
Yet, while gifts pour in, parts of PNG are still struggling to recover after a massive earthquake in February killed more than 100 people, destroying crops and infrastructure.
Polio, a potentially deadly and highly infectious viral disease almost eradicated globally, also re-emerged in PNG in recent weeks.
Faced with such challenges, the purchase by the PNG government of a fleet of luxury vehicles has sparked public protests.
Retailing in Australia at more than A$200,000 ($141,560), a Maserati is well beyond the reach of a typical PNG local, who earns on average $2,400 each year, according to U.N. data.
PNG’s government has said it has agreements in place to sell the cars immediately after APEC and taxpayers will bare no financial loss.
Diplomatic sources told Reuters nearly all leaders attending the event would travel in special armored vehicles, making it unclear what the sports cars will be used for.
Donors have so far largely refrained from public comment.
“Some are worried about rocking the boat and don’t want to threaten bilateral relations by publicly criticizing O’Neill for buying luxury cars,” said the senior British diplomatic source.
Chinese chipmaker Fujian Jinhua Integrated Circuit Co Ltd said on Saturday it has not stolen any technology, after the U.S. Justice Department indicted the state-back firm for stealing trade secrets.The U.S. Justice Department on Thursday indicted Fujian Jinhua, Taiwan's United Microelectronics Corp and three individuals for conspiring to steal trade secrets from U.S. semiconductor company Micron Technology Inc relating to its research and development of memory storage devices.Earlier in the week, U.S. President Donald Trump's administration took action to cut Fujian Jinhua off from U.S. suppliers.Trump says 'I think we'll make a deal with China' on tradeChina says more talks needed on economic aid for Pakistan"Behaviour to steal another firm's technology does not exist," Fujian Jinhua said in a statement posted on its official website."Micron regards the development of Fujian Jinhua as a threat and adopts various means to hamper and destroy the development of Fujian Jinhua," the statement said.The company "always attaches great importance to the protection of intellectual property rights," Fujian Jinhua added.The move to block Fujian Jinhua escalated what until now had been a business dispute into the realm of an international trade conflict between the United States and China.The world's top two economies are already waging a tariff war over their trade disputes, with U.S. duties in place on $250 billion worth of Chinese goods and Chinese duties on $110 billion of U.S. goods.The U.S. moves could seriously damage the ambitions of Fujian Jinhua, a firm of strategic importance to China.US official denies report of possible China trade dealTesla seeks to reduce tariff impact for Model 3 by making cars in ChinaChina promises Pakistan support as Khan tells of 'very difficult' economy
Chinese chip firm Fujian Jinhua denies stealing IP from Micron
U.S. President Donald Trump said on Friday that he will likely make a deal with China on trade, adding that a lot of progress had been made to resolve the two countries' differences but warning that he still may impose more tariffs on Chinese goods."China very much wants to make a deal," Trump told reporters in Washington just hours after his top economic adviser expressed caution about talk of a possible U.S.-China trade agreement."We've had a very good discussions with China, we're getting much closer to doing something," Trump said before departing the White House for a campaign event."I spoke with President Xi (Jinping) yesterday. They very much want to make a deal," Trump said.US official denies report of possible China trade deal"I think we'll make a deal with China, and I think it will be a very fair deal for everybody, but it will be a good deal for the United States."Trump said he will discuss trade with Xi when the two meet for dinner on the sidelines of the G20 leaders' summit at the end of November in Buenos Aires, Argentina.His administration has demanded that Beijing make sweeping changes to its policies on intellectual property protections, technology transfers, industrial subsidies and domestic market access, along with steps to reduce a $375 billion U.S. goods trade deficit with China.Trump said a deal with China would also be good for Beijing.Russia and Cuba urge US to rethink exit from nuclear arms pact"If we can open up China and make it fair, for the first time ever -- this should have done years ago by other presidents but it wasn't -- I am very much willing to do it. But China very much wants to make a deal," he said.Trump's comments came a day after a phone call with Xi that he described as "very good.".The president's remarks helped U.S. stocks to trim their losses on a day that started with market optimism over a Bloomberg report quoting unnamed sources as saying that Trump had ordered his cabinet to draw up terms for a China trade deal.But by midday, shares had turned negative, weighed down by Apple Inc.'s disappointing earnings forecast and comments from White House economic adviser Larry Kudlow that he was less optimistic than previously about a deal between Washington and Beijing.Trump supporters’ election test: a movement or a momentKudlow, speaking on CNBC, contradicted the Bloomberg report and added: "There's no mass movement, there's no huge thing. We're not on the cusp of a deal."One of China's vice commerce ministers Wang Bingnan said on Saturday the country is willing to resolve trade issues with the United States through mutually respectful talks and on an equal footing, similar to past comments from Beijing.Trump administration officials have said U.S.-China trade talks cannot resume until Beijing outlines specific actions it would take to meet U.S. demands for sweeping changes to policies on technology transfers, industrial subsidies and market access.Trump said that if a deal is not made with China, he could impose tariffs on another $267 billion in Chinese imports into the United States, adding that China's economy had "been hit very hard" by previous U.S. tariffs.The United States has imposed tariffs on $250 billion worth of Chinese goods so far, while China has retaliated with $110 billion worth of tariffs on U.S. goods.The Trump administration also has taken action to hit the Chinese semiconductor industry, indicting two companies accused of stealing trade secrets and banning U.S. software and equipment exports to one of them. 
Trump says 'I think we'll make a deal with China' on trade
China will provide Pakistan with economic aid but more talks will take place to fix the details, a senior Chinese diplomat said, after new Pakistani Prime Minister Imran Khan met Chinese Premier Li Keqiang on Saturday.Pakistan's foreign reserves have plunged 42 percent since the start of the year and now stand at about $8 billion, or less than two months of import cover.Last month, Pakistan received a $6 billion rescue package from Saudi Arabia, but officials say it is not enough and the country still plans to seek a bailout from the International Monetary Fund (IMF) to avert a balance of payments crisis.It would be Pakistan's 13th rescue package from the multilateral lender since the late 1980s.Pakistan's army denies role in Aasia Bibi acquittalSpeaking to reporters in Beijing's Great Hall of the People following Khan's talks with Li, Chinese Vice Foreign Minister Kong Xuanyou said his country would help."During the visit the two sides have made it clear in principle that the Chinese government will provide necessary support and assistance to Pakistan in tiding over the current economic difficulties," Kong said."As for specific measures to be taken, the relevant authorities of the two sides will have detailed discussions," he added, without giving details.Khan told Chinese President Xi Jinping the previous day that he had inherited "a very difficult economic situation" at home.China promises Pakistan support as Khan tells of 'very difficult' economyThough China is Pakistan's closest ally, Khan's newly elected government has sought to re-think the two countries' signature project, the $60 billion China-Pakistan Economic Corridor (CPEC), which Beijing touts as the flagship infrastructure programme in its vast Belt and Road Initiative.Pakistan has looked to amend CPEC to put greater emphasis on projects that focus on social development, rather than purely on infrastructure.Kong said there would be no change in the number of projects under CPEC."There is no change at all. If there were, it would only be to increase, not decrease" the number of projects, he added.However the scope of the project would increase and will tilt in favour of people's livelihoods, Kong said, also without elaborating.After visiting Beijing, Khan is set to be a key note speaker at a major import fair in Shanghai, an event that China hopes will show the world the country welcomes foreign companies and their products. 
China says more talks needed on economic aid for Pakistan