Asian stocks open generally lower today, following weakness in US overnight. Sentiments were somewhat weighed down by US President Donald Trump’s strongly worded rhetoric on China at United Nations General Assembly.
Trump criticized China for now delivering its promises when joining the WTO in 2001. He said “not only has China declined to adopt promised reforms, it has embraced an economic model dependent on massive market barriers, heavy state subsidies, currency manipulation, product dumping, forced technology transfers and the theft of intellectual property and also trade secrets on a grand scale”. And, “as far as America is concerned, those days are over.”
Though, Trump noted that “the American people are absolutely committed to restoring balance in our relationship with China. Hopefully, we can reach an agreement that will be beneficial for both countries.” But he also emphasized “as I have made very clear, I will not accept a bad deal.”
Additionally, Trump reiterated the link between Beijing’s treatment of Hong Kong and the trade deal. He said Washington was “carefully monitoring the situation in Hong Kong”. And, “the world fully expects that the Chinese government will honor its binding treaty made with the British and registered with the United Nations, in which China commits to protect Hong Kong’s freedom, legal system and democratic ways of life”. “How China chooses to handle the situation will say a great deal about its role in the world in the future. We are all counting on President Xi as a great leader,” Trump added.
