Issue 76 | Aug. 25, 2016
White House details plans for Obama's trip to G-20 in China
 
In his eleventh and final trip to Asia, President Obama will travel for the G-20 summit held in Hangzhou, China this year.  Key talking points include broad based economic opportunity and a leveled economic playing field.  While in China, President Obama will meet with President Xi Jinping of China to discuss security and economic concerns, as well has other bilateral issues.  After the G-20 Summit, Obama will also travel to Laos for the US-ASEAN summit to discuss the role of the United States in Asia, and the controversial TPP agreement in the Asian market. Read more.
 
Asian trade negotiations taking place without the U.S.
 
Last week, representatives from Australia and Far East countries met in Vietnam to continue to negotiate a deal that could replace the Trans-Pacific Partnership (TPP).  The RCEP (Regional Comprehensive Economic Partnership), a free-trade agreement that does not include the U.S., but does include China, is considered an alternative to the TPP agreement.  Experts believe that this continued discussion in Vietnam may jumpstart U.S. action in regards to TPP. Read more.
 
TPP can't be renegotiated, Vietnamese official says 
 
Despite demands from many U.S. officials, the TPP cannot be renegotiated, says Vietnamese official Vuong Duc Anh.  Some U.S. Congressional members may be holding out on voting for the TPP for special interest groups such as the tobacco and medical drug industries lobbying for longer data exclusivity periods and the right to sue foreign governments.  Ahn believes that it's unfeasible to change the TPP which underwent "tough negotiations" and was signed this past February.  According to Ahn, the TPP can be mutually beneficial for the U.S. and Vietnam.  TPP stands to increase Vietnamese cotton exports by 28 percent by 2030 according to The World Bank and could benefit the U.S. with cheaper cotton, as well as less reliance on China for its cotton needs. Read more.
 
The case for delaying the start of the Brexit process 
 
United Kingdom Prime Minister Theresa May has promised not to invoke article 50 of the Lisbon Agreement, which would trigger the two year period for the U.K.'s exit from the European Union, this year.  This had led to some speculation regarding how long Brexit will be delayed.  Even as the Department for the Exiting of the EU has grown to 150 people, there are many difficulties involved with Brexit.  Renegotiating trade deals within two years is very difficult and other issues related to tariffs and immigration are all closely tied with Brexit and could be reasons for a delay. Read more.
 
Beijing launches 200b Yuan venture capital fund to foster SOE reform and spur innovation
 
China has started a 200 billion Yuan government backed venture capital fund this past week in order to reinvigorate the state sector and overall innovation.  The fund will be promoted and managed by China Reform Holdings Corporation, which will answer directly the State-Owned Assets Supervision and Administration Commission.  The fund will allow the government to dispose of bad State Owned Enterprises while adding more profitable ones in a more market-friendly way.  The fund could eventually double to 200 billion Yuan, depending on investors. Read more
 
Chinese steel futures fall, but outlook firm
 
As China moves away from industrial production, the Chinese government re-emphasizes their commitment to cut steel production.  Early this year, China promised to cut steel capacity by 45 million tons, but are behind on that current target.  Steel mills have been closed around the country, as the government promises to increase regional checks to deal with the steel overcapacity, and environmental issues.  Read more.
 
 
Compiled by Global Intern Krishna Babla.

For more information, contact Jasmin Sakai-Gonzalez, 213.580.7569.