China is closing the gap on U.S. in technology IP race

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At the Boao Forum, Xi pledged to further open China's economy and cut import tariffs this year. Last week, China's banking and insurance regulator said the country would crack down firmly on shadow banking, and would seek to push banks to bring off-balance sheet assets onto their balance sheets to give regulators a better idea of their risk exposure. In addition, reporting on China's illegal industrial subsidies has been frequent since China joined the World Trade Organization in 2001.

"The political will is articulated in a very powerful way and once it's communicated to each of the bureaucracies lower down I expect very positive things", he said.

According to an April 2018 Quinnipiac Poll, 68 percent of Americans believe a China trade war would be bad for the USA economy.

China's March exports fell 2.7% from a year earlier, lagging analysts' forecasts for a 10.0% increase, and down from a sharper-than-expected 44.5% jump in February, which economists believe was heavily distorted by seasonal factors.

Chinese president Xi Jinping also made an appearance, giving a speech from the deck of a destroyer before watching fighter jets take off from China's first and only aircraft carrier, the Liaoning.

In his opening remarks at the fifth China-India Strategic Economic Dialogue, NITI Aayog Vice-Chairman Rajiv Kumar said India was ready to step in and supply soya beans to China, which may no longer be available from the mid-western states of the U.S.

"(Taiwan's) not going to cede the lifestyle and virtual independence they've got now, so for China is gets more and more hard in some respects". The Chinese were saying they are not at fault and are challenging the proposed US tariffs before the World Trade Organization, lending credence to a worst case scenario. We now give them multiple three-month visas.

In an April 9 article published on the state-run media Global Times' website, retired People's Liberation Army lieutenant-general Wang Hongguang said the Chinese regime had all the military capabilities to invade Taiwan, and that it could be achieved within 100 hours-"without giving American or Japanese forces the chance to summon a massive military force to assist [Taiwan]", he wrote.

The Hong Kong Monetary Authority stepped into the currency market and bought another HK$3.038 billion ($387.01 million) in Hong Kong dollars on Friday as the local currency hit the weaker end of its trading range.

China has repeatedly warned that it will fight back against the proposed duties.

Beijing reported a trade surplus of $275.8 billion with the United States previous year, or two-thirds of its global total.

"We hope that the United States will listen patiently to rational and pragmatic voices on the trade balance issue".

Trump is right to point out that China's protectionist insistence on imbalanced trade ($506 billion in exports vs. $130 billion in imports) is problematic.

Finally, a full trade war would also have significant implications for key US allies, namely South Korea, whose economy would suffer drastically.

China is unlikely to respond until Washington acts but might launch an investigation of imports of US corn and soybeans "as a warning shot", said Parker. Is Chinese policy really changing?