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Biden faces pressure to prohibit Chinese electric vehicle imports

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US President Joe Biden has been urged to ban the import of Chinese-made electric cars into the US.

“Chinese electric vehicles pose an existential threat to the American auto industry,” said Democratic Senator Sherrod Brown, chairman of the Senate Banking Committee.

Brown’s comments were the strongest made by a US congressman on the issue, while others have called for high tariffs to keep Chinese electric vehicles (EVs) out of the country.

In February, the White House announced that the US had launched an investigation into whether Chinese cars pose a national security risk.

“We cannot allow China to bring their state-sponsored tricks to the American auto industry,” Senator Brown said in a video posted on social media platform X.

Senator Brown, from Ohio, where the auto industry is important, is seeking a fourth term in the Senate in November’s election.

In February, President Biden said that China’s policies “could pose a risk to our national security by flooding our market with their vehicles” and that he “will not allow that to happen on my watch”.

The White House had said Washington could impose restrictions over concerns that technology in Chinese-made vehicles could ‘collect vast amounts of sensitive data about their drivers and passengers’.

China is vying with Japan to become the world’s biggest carmaker and exporter. However, the number of Chinese cars in the US is extremely low due to the fact that the US currently imposes a 27.5 per cent tariff on vehicles.

Airlines demand action against China

On Thursday, America’s largest airlines asked the Biden administration to stop approving new flights between the US and China.

In a letter to Secretary of State Antony Blinken and Department of Transportation Secretary Pete Buttigieg, they argued that China’s “harmful anti-competitive policies” put US airlines at a disadvantage.

The letter was signed by Airlines for America, an industry lobby group whose members include American Airlines, Delta and United, and other unions representing airline workers, including the Air Line Pilots Association.

“If the growth of China’s aviation market is allowed to continue unchecked and without concern for equal market access, flights will continue to be ceded to Chinese carriers at the expense of U.S. workers and businesses,” the letter said.

In the letter, the US carriers argued that during the pandemic, China imposed severe restrictions on market access and imposed harsh rules affecting operations, customers and the treatment of US airline crews.

The “anti-competitive disadvantage” with China was exacerbated in 2022 when the Asian giant’s airlines continued to have access to Russian airspace while US carriers stopped using it as a result of the war, the letter said.

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Trump and Biden neck-and-neck in key battleground states

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US President Joe Biden and Republican rival Donald Trump are running neck-and-neck in the November presidential election, according to a new Reuters/Ipsos poll.

Forty per cent of registered voters in the eight-day survey, which ended on Tuesday, said they would vote for Democrat Biden if the election were held today, while the same proportion chose former US president Trump. This is little changed from Biden’s 1-point lead in the Reuters/Ipsos poll conducted on 29-30 April.

According to the poll, which has a margin of error of about 2 percentage points among registered voters, many voters remain undecided nearly six months before the November 5 election.

Twenty per cent of registered voters surveyed said they had not chosen a candidate, were leaning towards third party options or might not vote at all.

Thirteen per cent said they would vote for Robert Kennedy Jr, who entered the race as an independent, if he appeared on the ballot with Trump and Biden. In the previous poll, conducted in April, Kennedy had 8% support.

While the ongoing lawsuits against him challenge Trump, Biden faces difficulties because of his age and his stance on the Gaza war.

When respondents were not given the option of voting for a third candidate or saying they were not sure who they would vote for, both candidates were tied at 46 per cent among registered voters; 8 per cent of respondents declined to answer the question.

Among registered voters who say they are “absolutely certain” they will vote in November, Biden leads by a slim 3-point margin.

In the 2020 presidential election, when Biden defeated Trump, only two-thirds of voters went to the polls.

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Pro-Palestinian protesters demonstrate inside CUNY Graduate Center in Manhattan

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In the US, pro-Palestinian protesters briefly occupied the lobby of the CUNY Graduate Center in Manhattan on Tuesday night, nearly two weeks after a massive police crackdown at the City College of New York (CUNY) and other campuses.

Students demonstrated for several hours in the lobby, hanging banners and calling the centre’s library the “Aqsa University Library”.

Aqsa University, the oldest public university in Gaza, was demolished during the Israeli occupation.

Outside the Graduate Centre, a group of protesters waved Palestinian flags in the rain in support of their friends. Dozens of police lined the street outside the building, but did not enter.

Students participating in the demonstration called on the administration to negotiate divestment from “Israeli arms, technology and surveillance companies”.

At 10.30 p.m. US time, the students emerged from the Graduate Centre and declared victory, telling protesters on the street that after negotiations, the CUNY administration had agreed to take their demands to the entire student body.

The protesters then evacuated the library and staff immediately began cleaning it.

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US announces new tariffs on China

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US President Joe Biden has slapped new tariffs on cheap electric vehicles, batteries, solar equipment and other products imported from China.

“President Biden’s economic plan supports investment and creates good jobs in key sectors vital to America’s economic future and national security,” the White House said in a statement.

Claiming that China’s “unfair trade practices” in technology transfer, intellectual property and innovation threaten American companies and workers, Washington said Beijing was also flooding global markets with “artificially low-priced exports”.

In this context, the White House announced that Joe Biden had directed the US Trade Representative to increase tariffs on $18 billion of Chinese imports under Section 301 of the 1974 Trade Act in order to “protect American workers and businesses” in “response to China’s unfair trade practices” and to “remedy the resulting injury”.

Arguing that American workers and businesses can outperform anyone else “as long as there is fair competition”, the White House claimed that the Chinese government has long resorted to “unfair, non-market practices”.

“China’s forced technology transfers and intellectual property theft have created unacceptable risks to America’s supply chains and economic security by allowing it to control 70, 80 and even 90 per cent of global production of critical inputs needed for our technologies, infrastructure, energy and health care,” the statement said.

It also noted that these “non-market policies and practices” have contributed to China’s growing overcapacity and export surges that “threaten to significantly harm” American workers, businesses and communities.

“The actions taken today against China’s unfair trade practices are carefully targeted at strategic sectors where the United States, under President Biden, has made historic investments to create and sustain good-paying jobs, unlike recent Republican proposals in Congress that would threaten jobs and raise costs across all sectors,” the Biden administration said, also criticising Republican proposals.

The new tariffs announced by the White House are as follows:

– From 25 per cent to 100 per cent in 2024 for electric vehicles;

– Tariffs on lithium-ion batteries for electric vehicles from 7.5 per cent to 25 per cent in 2024;

– For semiconductors, from 25 per cent to 50 per cent by 2025;

– For solar cells from 25% to 50% in 2024;

– 0% to 50% in 2024 for certain medical products such as syringes and needles;

– Tariffs on certain steel and aluminium products from 0-7.5% to 25% in 2024.

National Economic Council Director Lael Brainard told reporters that they were designed to ensure that US green technology and manufacturing industries “are not undermined by a flood of unfairly low-priced exports from China in areas such as electric vehicle batteries, critical medical devices, steel and aluminium semiconductors, and solar energy”.

According to Axios, Biden administration officials said they do not know how or if Beijing will retaliate, but they expect Beijing to speak publicly and raise its voice.

“I hope we don’t see a significant response from China, but that’s always a possibility,” Treasury Secretary Janet Yellen told Bloomberg.

White House officials argue that the tariffs will not increase US inflation because the amount of goods they target is too small.

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