🔮 Better than the Oracle? Our Fair Value found this +42% bagger 5 months before Buffett bought itRead More

China’s Xi Calls for ‘New Long March’ as U.S. Tensions Rise

Published 22/05/2019, 07:19 pm
© Bloomberg. Chinese President Xi Jinping, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, talks with villagers at an industrial park for planting selenium-rich vegetables in Yudu County during an inspection tour of east China's Jiangxi Province. Xi on Monday visited an old revolutionary base area in the south of Jiangxi Province during the inspection.
0763
-

(Bloomberg) -- China’s President Xi Jinping called on citizens to join a "new Long March," a phrase he’s used before to characterize achieving progress despite hardship, as the U.S. weighs stronger restrictions on Chinese technology companies amid a deepening trade war.

Xi made the remarks on Monday while leaving the Long March memorial garden in Jiangxi Province, according to a video clip released by state television. The site marks the starting point of a lengthy migration from 1934 by the Communist Party’s military after setbacks that forced it to join with troops in northwest China.

"We came to the starting point of the Long March to experience the Red Army’s departure at that time," Xi said to a cheering crowd as he departed. "It’s a new Long March now, and we must start all over again."

While the comments have historical significance, Xi last March also called the push to turn party proposals into reality a "new Long March" and state-run Xinhua News Agency defined the phrase as the realization of the Chinese dream in a story on Wednesday. Yet, the timing of the clip -- released one day after Xi actually made the remarks -- and the decision to air only one line, could be read as rallying the nation for what is set to be prolonged conflict with the U.S.

Xi’s trip to Jiangxi came after talks between Beijing and Washington stalled, with U.S. President Donald Trump accusing China of backing out of a deal that was taking shape and saying that China reneged on an agreement to legislate various agreed reforms.

On Monday, Xi visited a rare earths facility in Jiangxi, fueling speculation that the strategic materials could be weaponized in China’s tit-for-tat with the U.S. on trade. The VanEck Vectors Rare Earth/Strategic Metals ETF, which tracks producers, jumped the most since 2011 on Monday.

Tech Threat

Trump is considering blacklisting up to five Chinese surveillance companies including Hangzhou Hikvision Digital Technology Co. and Zheijiang Dahua Technology Co., according to people familiar with the matter. The restrictions would be similar to those imposed last week on Huawei Technologies Co., and would sharply curtail the companies’ access to U.S. market and American suppliers.

The U.S. policy of "maximum pressure" on Huawei has proved again that China can’t buy its way into modernization, according to a commentary published on Wednesday in the People’s Daily, the flagship newspaper of the Communist Party. The paper cautioned that "China’s economic security can not be ensured unless it achieves technology independence."

The paper also rebutted U.S. accusations of "China backtracking" in the trade talks in another commentary on Wednesday, saying the claims were deliberately made up by U.S.

Even Tencent Holdings Ltd.’s billionaire founder Pony Ma chimed in on the need for China to chart its own tech course. He said that without fundamental research, the country’s tech industry would be built on shifting sands. He stressed how the social media giant he runs had invested in artificial intelligence, quantum computing and robotics over the past two years.

“Given how the dispute on ZTE (HK:0763) and Huawei is escalating, Tencent has been paying attention to whether the trade war will turn into a tech war,” Ma said during a May 21 speech.

(Updates with comments by Tencent’s Pony Ma in last two paragraphs.)

© Bloomberg. Chinese President Xi Jinping, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, talks with villagers at an industrial park for planting selenium-rich vegetables in Yudu County during an inspection tour of east China's Jiangxi Province. Xi on Monday visited an old revolutionary base area in the south of Jiangxi Province during the inspection.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.