Kevin Hassett asks companies to stay out of China

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "As trade tensions between the US and China intensify, Washington sends a warning to US companies: think twice before doing business with China. "data-reactid =" 15 ">As trade tensions between the US and China intensify, Washington sends a warning to US companies: think twice before doing business with China.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = ""If I were a company, I would basically stay away from China for the moment. Their bad behavior is so terrible. Kevin Hassett, Chairman of the Council of Economic Advisers, told Yahoo Finance's Market Mover Friday, "That's why President Trump is very tough with them." They need to change their behavior if they want to do it. part of this modern world economy. "& Nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp;"data-reactid =" 16 ">"If I were a company, I would basically stay away from China for the moment. Their bad behavior is so terrible. Kevin Hassett, Chairman of the Council of Economic Advisers, told Yahoo Finance's Market Mover Friday, "That's why President Trump is very tough with them." They need to change their behavior if they want to do it. part of this modern world economy. "

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Hassett also quoted bomb story Bloomberg Businessweek, who claims that the Chinese military has used a microchip to attack the supply chain hardware and has infiltrated the tech giants of the US such as Amazon and Apple. Both companies denied the report. But this still raised many concerns about Chinese electronics manufacturers. Lenovo and ZTE, listed in Hong Kong, saw their prices fall by 15% and 10%, respectively, on Friday."data-reactid =" 17 ">Hassett also quoted bomb story Bloomberg Businessweek, who claims that the Chinese military has used a microchip to attack the supply chain hardware and has infiltrated the tech giants of the US such as Amazon and Apple. Both companies denied the report. But this still raised many concerns about Chinese electronics manufacturers. Lenovo and ZTE, listed in Hong Kong, saw their prices fall by 15% and 10%, respectively, on Friday.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Hassett's sentiment has been widely echoed by the Trump government. In an aggressive speech on China on Thursday, Vice President Mike Pence said that Beijing "has ordered its bureaucrats and its companies to obtain US intellectual property." He also called on Google to end its project of developing a censored search engine for China, a market that the internet giant had left in 2010. "data-reactid =" 18 ">Hassett's sentiment has been widely echoed by the Trump government. In an aggressive speech on China on Thursday, Vice President Mike Pence said that Beijing "has ordered its bureaucrats and its companies to obtain US intellectual property." He also called on Google to end its project of developing a censored search engine for China, a market that the internet giant had left in 2010.

<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Not easy to abandon China"data-reactid =" 19 ">Not easy to abandon China

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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Ongoing trade negotiations are adding many uncertainties to US companies considering entering the Chinese market, with a population of 1.3 billion and an expanding middle class. US companies have been active in the Chinese economy since the reform period in the late 1970s, and have invested hundreds of billions of dollars. President Trump said the United States had rebuilt China. "data-reactid =" 31 ">Ongoing trade negotiations are adding many uncertainties to US companies considering entering the Chinese market, with a population of 1.3 billion and an expanding middle class. US companies have been active in the Chinese economy since the reform period in the late 1970s, and have invested hundreds of billions of dollars. President Trump said the United States had rebuilt China.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Meanwhile, China has become the engine of growth for some US companies. Starbucks (SBUX) is one of the greatest successes. Since opening its first store in Beijing in 1999, the Seattle-based coffee chain now operates 3,400 stores and plans to open a new one every 15 hours until 2022. "data-reactid =" 32 ">Meanwhile, China has become the engine of growth for some US companies. Starbucks (SBUX) is one of the biggest successes. Since opening its first store in Beijing in 1999, the Seattle-based coffee chain now operates 3,400 stores and plans to open a new one every 15 hours until 2022.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Apple's premium iPhones are very hot status symbols in China, where the iPhone maker (AAPL) achieved a turnover of $ 13 billion during the second quarter of its fiscal year, contributing more than 20% to its global business figure. & nbsp;"data-reactid =" 33 ">Apple's premium iPhones are very popular symbols in China, where the iPhone maker (AAPL) achieved $ 13 billion in revenue during its second fiscal quarter this year, contributing more 20% to its global turnover.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Today, US companies are facing a more complicated situation in the context of trade disputes. You're here (TSLA), the builder of high-level electric cars, is caught up in the rising geopolitical battle. The company said the trade dispute led to a 40% retaliatory tariff on Tesla vehicles exported to China. Exports to the country accounted for about 20 percent of Tesla's automotive sales in 2017, according to Moody's."data-reactid =" 34 ">Today, US companies are facing a more complicated situation in the context of trade disputes. Tesla (TSLA), the maker of high-end electric cars, is caught up in the rising geopolitical battle. The company said the trade dispute led to a 40% retaliatory tariff on Tesla vehicles exported to China. Exports to the country accounted for about 20 percent of Tesla's automotive sales in 2017, according to Moody's.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "US companies operating in China have already felt the effects of the trade war, but it is difficult for them to deviate, evoking difficulties in moving a supply chain or creating a new one over a short period of time. More than 60% of US companies have been penalized by the tariffs imposed by both countries, according to a investigation by the American Chamber of Commerce of Beijing and Shanghai. "data-reactid =" 35 ">US companies operating in China have already felt the effects of the trade war, but it is difficult for them to deviate, evoking difficulties in moving a supply chain or creating a new one over a short period of time. More than 60% of US companies have been penalized by the tariffs imposed by both countries, according to a investigation by the American Chamber of Commerce of Beijing and Shanghai.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = ""We support President Trump's efforts to restore trade relations between the United States and China, address persistent inequities and create a level playing field for all. But we can do it by means other than flat rates, "said Eric Zheng, chairman of AmCham Shanghai, in a statement released last month. "data-reactid =" 36 ">"We support President Trump's efforts to restore trade relations between the United States and China, address persistent inequities and create a level playing field for all. But we can do it by means other than flat rates, "said Eric Zheng, chairman of AmCham Shanghai, in a statement released last month.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Krystal Hu covers technology and the economy for Yahoo Finance. Follow her on & nbsp;Twitter."data-reactid =" 37 ">Krystal Hu covers technology and the economy for Yahoo Finance. To follow her Twitter.

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