The shadowy world of Trump business in China
A summary of the top news in Chinese politics and current affairs for September 26, 2017. Part of the daily The China Project newsletter, a convenient package of Chinaโs business, political, and cultural news delivered to your inbox for free. Subscribe here.
โI donโt know how much money sheโs making on this and why itโs worth it. I think itโs putting our trade policy in a very awkward situation.โ
That is how Richard Painter, a chief ethics adviser in the George W. Bush administration who is also one of several high-profile lawyers suingย Donald Trump for accepting foreign bribes, reacted to the results of an Associated Press investigation into Ivanka Trumpโs business in China.
The investigationย of the clothing and merchandise business in China of the American presidentโs daughter โ and senior White House adviser โ revealed little, and thatโs the problem. Regarding how her brand operates in China, AP found:
- Ninety percent of merchandise shipments could not be tracedย to a company.
- Information quality on shipments has degradedย since Ivanka Trump was appointed senior adviser to the president of the United States in March.
- Almost nothing is knownย about where her merchandise is produced, or how much money is involved in production at those factories.
- One company, Zhejiang Tongxiang Foreign Trade Group,ย which shipped thousands of Ivanka Trump handbags from March 2016 to February 2017, received export subsidies from the Chinese governmentย โ the exact kind of โcheatingโ in trade that Donald Trump has repeatedly decried. AP spoke with four trade experts to verify that the records on this company do in fact indicate export subsidies.
- One state-owned company, Jiangsu High Hope International Group,ย was listed as working with the Ivanka Trump brand from 2013 to 2015, and it was impossible to verify whether state-owned companies โ or state-owned supply chains โ continue to aid Ivanka Trumpโs brand.
In May this year, three researchers from China Labor Watch tried to investigateย the labor conditions at Ivanka Trumpโs shoe factory in southern China, but were detained by police. The advocacy organization said this was the first time their investigators had been detained.
This Trump family entanglement in Chinaโs business comes as the U.S. and China gear upย for Donald Trumpโs expected visit in Beijing in November. Hereโs how thatโs going:
- American Commerce Secretary Wilbur Ross is in Beijing, where he met with Premier Li Keqiang ๆๅ ๅผบ and urgedย โfair and reciprocal treatment for U.S. firms,โ according to Reuters. Xinhua saysย that Li believes โChina’s market will be more and more open and its business environment will get better and better.โ
- The U.S. has submitted a document to the World Trade Organization, arguing that Chinaโs cybersecurity lawsย will restrict foreign business, and asking that China delay the implementation of these laws and revise them, Reutersย reports.
- SCMP has a list of โFive trade issues the U.S. and China need to tackle before Trump goes to Beijing.โ
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North Korea
Before U.N. deadline, China again buys North Korean coalย / WSJ (paywall)
China urges North Korea, U.S. to stop escalating war of wordsย / AP
China’s fuel exports to North Korea slow further โ customsย / Reuters
Snapshots along the river where China meets North Koreaย / NYT (paywall)
North Korea’s demand for Chinese corn soars 4,600 percentย / Bloomberg -
Hong Kong
Freedom of expression under fire as Hong Kong prosecutes peaceful protesters, Amnesty International saysย / HKFP -
Peacekeeping
Chinaโs vision of itself as the worldโs peacekeeper starts in Africaย / Quartz -
Propaganda
China says entrepreneurs must put patriotism over profitย / Bloomberg -
Africa โ environment
As China has boosted renewable energy itโs moved dirty coal production to Africaย / Quartz -
Vietnam
ASEAN endorses East Sea code proposalย / The Jakarta Post
China pulls Vietnam border war movie from cinema holiday lineup at last minuteย / SCMP
China’s projects in Vietnam earn reputation for poor quality, delaysย / Nikkei Asian Review
Chinese, Vietnamese Communist parties have ‘shared destiny’: Beijingย / Reuters