Market Round Up: US Airlines comply to China, Juncker in auto talks, Farmers get a handout
US Airlines riding roughshod over Taiwan.
The following four U.S. airlines American, Delta, United and Hawaiian will comply with China’s demand that Taiwan be recognized as part of China on their websites. Several non-US airlines such as Qantas, Air France, Lufthansa, air Canada, and British Airways have already complied to Chinese pressure earlier this year and now refer to Taiwan as a territory, and not an independent country. But all of them are ignoring each of their government’s geo-political position in recognizing Taiwan as a free country. So is this a case of business over ethics?
China has been waging a long campaign to force businesses and multinational companies to conform to its position concerning Taiwan, which is governed separately from China, by using business as a back door to eventual political recognition of what it considers is nothing more than a rogue province ever since Chiang Kai-shek’s Nationalist party lost the civil war and fled to the island in 1949. Interestingly, Trump’s White House Press Secretary Sarah Huckabee Sanders said accused China’s airline directive as “Orwellian nonsense and part of a growing trend by the Chinese Communist Party” to impose its political views.
Trade Wars. Juncker-Trump in auto talks, Farmers get a handout
EU Commissioner Jean-Claude Juncker is in Washington today meeting with Trump about the recent car import tariffs. Juncker will be hoping for some kind of reprieve to Euro car manufacturers, given the scale of their exports to the U.S. However, Trump’s recent tweets such as “tariffs are the greatest” and “the U.S. and the E.U. drop all Tariffs, Barriers and Subsidies! – but they won’t!” suggest a less optimistic outcome for today’s meeting.
Hours after tweeting “Tariffs are the greatest,” the Trump administration announced up to $12 billion in emergency relief for farmers affected by the trade war. Farmers are said to be one of his most supportive group of followers. This is going to leave some other strong GOP supporters in a quandary because they normally oppose any form of government assistance.