Top News: US shut­down ‘won’t af­fect truce’

▶ Pub­lic con­fi­dence in Chi­nese fi­nan­cial mar­ket feared

Global Times - - FRONT PAGE - By Leng Shumei

Chi­nese ex­perts warned of the ef­fect of the US govern­ment shut­down on pub­lic con­fi­dence in Chi­nese fi­nan­cial mar­kets. But they be­lieve the shut­down will have lit­tle im­pact on the 90-day truce in tar­iffs be­tween China and the US.

The par­tial US govern­ment shut­down en­tered a record 23rd day on Sun­day.

Wu Xinbo, di­rec­tor of Fu­dan Univer­sity’s Cen­ter for Amer­i­can Stud­ies, told the Global Times on Sun­day that as long as US Pres­i­dent Don­ald Trump is de­ter­mined to solve the two coun­tries’ trade fric­tions, the US govern­ment’s shut­down will have no im­pact on China-US ne­go­ti­a­tions.

“Al­though the two sides’ meet­ings may be de­layed due to the lack of hands dur­ing the shut­down, the re­sult of the ne­go­ti­a­tions will not be af­fected,” Wu said.

Chi­nese Vice Premier Liu He plans to visit the US on Jan­uary 30 and 31, but it could be de­layed by the US govern­ment shut­down, The Wall Street Jour­nal re­ported Thurs­day.

Zha Xiao­gang, a re­search fel­low at the Shang­hai In­sti­tute for In­ter­na­tional Stud­ies, agreed with Wu, say­ing that the shut­down will not di­rectly af­fect China-US ties.

How­ever, he warned that if the on­go­ing US govern­ment shut­down has no end in sight, China will suf­fer from an un­cer­tain global mar­ket.

“An ex­tended shut­down will add to the un­cer­tainty in the US mar­kets, which is vi­tal to global mar­kets. Thus, in the long run, the Chi­nese fi­nan­cial mar­ket may likely suf­fer from de­clin­ing pub­lic con­fi­dence,” Zha said.

The shut­ter­ing of the US Se­cu­ri­ties and Ex­change Com­mis­sion could rip­ple through­out the mar­kets, in­clud­ing slow­ing some highly an­tic­i­pated stock of­fer­ings by com­pa­nies such as Uber and Lyft, the Wash­ing­ton Post re­ported on Fri­day.

A CNBC re­port on Wed­nes­day warned that the US is in dan­ger of los­ing its triple-A sov­er­eign credit rat­ing later this year and the on­go­ing govern­ment shut­down could soon start to im­pact the coun­try’s abil­ity to pass a bud­get, cit­ing James McCor­mack, global head of sov­er­eign rat­ings with rat­ings agency Fitch.

The shut­down, if it lasts un­til the end of this month, will also co­in­cide with the dead­line of the ex­tra­di­tion of Huawei chief fi­nan­cial of­fi­cer Meng Wanzhou, who was ar­rested by Canada based on a US re­quest on De­cem­ber 1.

Some ex­perts pre­dict that Canada will re­lease Meng if the US does not re­quire ex­tra­dite be­fore dead­line.

Ni Feng, deputy di­rec­tor of the Chi­nese Academy of So­cial Sciences’ In­sti­tute of Amer­i­can Stud­ies, said that “it is still hard to say how will the case go as we do not know how the US ju­di­cial de­part­ment is ar­rang­ing the case in spe­cific.”

Meng is sched­uled to stand on court on Fe­bru­ary 6.

Al­though re­ports of dirty and un­guarded US na­tional parks swept Chi­nese so­cial me­dia, plans by Chi­nese tourists to visit the US ap­pear to have not been af­fected.

Bei­jing-based Damei tourism agency told the Global Times on Sun­day that their tour groups to the US will go on as planned. But some tourist spots will lack staff.

Lead­ing Chi­nese tour op­er­a­tor CYTS told the Global Times on Sun­day that the shut­down has not af­fected the pro­cess­ing of US visa ap­pli­ca­tions.

Mean­while, Chi­nese peo­ple are con­cerned about the con­di­tion of the three pan­das af­ter the Smith­so­nian Na­tional Zoo turned off the live panda cam amid the on­go­ing par­tial govern­ment shut­down. “We can take the pan­das back if the US really lacks the money,” Sina Weibo user to­ufa­tongx­i­angqingjia said.

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