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From Wall Street to Commerce Secretary: Howard Lutnick to lead Trump’s Trade and Tariff Strategy

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Donald Trump has named Howard Lutnick, a Wall Street businessman, as the next Secretary of the Department of Commerce. In his announcement, Trump praised Lutnick, the CEO of financial firm Cantor Fitzgerald, as a “dynamic force on Wall Street for more than 30 years” and highlighted his leadership on the administration’s “tariff and trade agenda.” 

Lutnick’s nomination follows months of speculation. Initially considered for Treasury Secretary, he faced competition from hedge fund manager Scott Bessent. His appointment to Commerce also came as a surprise, beating out Robert Lighthizer, Trump’s former U.S. Trade Representative, and Linda McMahon, the former head of the Small Business Administration. Both Lighthizer and McMahon were recently informed that Lutnick was Trump’s choice to head the Commerce Department.  

The Department of Commerce, while smaller than the Treasury Department, plays a crucial role in areas where business and national security intersect.  The Secretary’s responsibilities include supporting U.S. businesses, negotiating trade agreements, and fostering foreign investment. Beyond its role in the US-China trade and tech war, its responsibilities include patent approvals, publishing economic data, and conducting the US census. The department also investigates anti-dumping and anti-subsidy cases, often leading to punitive tariffs designed to protect domestic industries.

Fearing that Beijing could exploit American technology to enhance its military capabilities, both the Trump and Biden administrations have aggressively used the Commerce Department’s authority to regulate the flow of U.S. and foreign technologies to China. This effort has particularly focused on semiconductors and the equipment used to manufacture them. Over the past two years, the U.S. has implemented sweeping export controls on advanced chips and chipmaking tools, curtailing China’s access to cutting-edge artificial intelligence technologies and next-generation semiconductor production equipment.

During Trump’s first term, former Commerce Secretary Wilbur Ross was a central figure in the U.S.-China trade war and a vocal advocate for higher tariffs—an agenda Lutnick has also embraced. Lutnick has not been outspoken about China compared to other figures in the administration. However, he is a staunch advocate for tariffs, particularly targeting China. Trump’s campaign pledge to impose a 60% tariff on goods from China and a 10% tariff on goods from other countries aligns closely with Lutnick’s views.  In a recent podcast interview, Lutnick emphasized his support for revenue-driven trade policies, saying, “Don’t tax our people. Make money instead. Put tariffs on China and make $400 billion.”

The next Commerce Secretary will be tasked with enforcing a range of regulations aimed at restricting China’s technological advancements, particularly in artificial intelligence and semiconductors. This includes efforts to keep major Chinese firms, such as Huawei Technologies and Semiconductor Manufacturing International Corporation (SMIC), several steps behind their global competitors in key tech sectors. 

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Xi asks Germany to help With EU tariffs on Chinese Electric Vehicles 

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Chinese President Xi Jinping urged German Chancellor Olaf Scholz on Tuesday to facilitate the resolution of the EU’s tariffs on Chinese electric vehicles, as reported by state television CCTV.

During their meeting on the sidelines of the Group of 20 summit in Rio de Janeiro, Xi expressed China’s readiness to collaborate with Germany to strengthen their strategic partnership. He then highlighted the issue of EU tariffs on Chinese-made EVs, which has heightened the risk of a trade conflict between Beijing and the bloc.

The EU green lit significant tariffs on imports of Chinese electric vehicles after receiving broad support from member states. These tariffs are expected to increase from the current 10% to as much as 45% over the next five years.The European Commission, which conducted the vote, emphasized that the EU and China would “work hard to explore an alternative solution” to the tariffs. In response, China’s Commerce Ministry denounced the decision as “unfair” and “unreasonable,” but acknowledged the possibility of resolving the issue through negotiations.

EU member states were divided on imposing tariffs on Chinese electric vehicles. Germany, whose automotive industry relies heavily on exports to China, opposed the tariffs. Many EU members abstained from the vote. However, France, Italy, the Netherlands, and Poland supported the import taxes. The proposal for tariffs could only have been blocked if a qualified majority of 15 member states had voted against it.

The dispute has sparked concerns among industry groups outside the automotive sector about potential retaliatory tariffs from China. A trade body representing the French cognac industry criticized the French authorities, stating they “have abandoned us.” They added, “We do not understand why our sector is being sacrificed in this way.” 

Xi stated, “It is hoped that Europe and China will resolve the issue of electric vehicles through dialogue and negotiation as soon as possible, and the German side is willing to make active efforts in this regard,” according to a readout from Chinese state news agency Xinhua.

A spokesperson for the German government mentioned that Scholz’s meeting with Xi lasted 30 minutes, during which the chancellor also discussed geopolitical issues, including the conflicts in Ukraine and the Middle East.

Xi’s South America tour commenced with his participation at the Asia-Pacific Economic Cooperation forum in Lima, where he inaugurated a Chinese-funded Pacific port. Following the conclusion of the G20 summit on Tuesday, Xi is scheduled to visit Brasilia for a state visit, where he will meet with Brazilian President Luiz Inacio Lula da Silva and sign several cooperation agreements.

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Hong Kong’s Largest National Security Trial: 47 Pro-Democracy Figures Face Years in Prison”

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Forty-five members of the “Hong Kong 47” have been sentenced to prison terms of four to 10 years in the largest national security trial since Beijing imposed the controversial National Security Law (NSL) in 2020. The group, which includes prominent activists, lawmakers, and campaigners, was prosecuted for conspiracy to commit subversion over their involvement in an unofficial primary election in 2020. 

Legal scholar and activist Benny Tai, accused of masterminding the primary election plan, received the longest sentence of 10 years. The court found Tai’s strategy—intended to secure a pro-democracy legislative majority, block government budgets, and pressure the chief executive to resign—to be a violation of Hong Kong’s mini-constitution, the Basic Law, and an act of subversion under the NSL. The judges stated that Tai’s writings advocating the plan amounted to “advocating for a revolution.” 

Australian-Hong Kong dual national Gordon Ng was sentenced to over seven years after pleading not guilty and being convicted earlier this year. Australian Foreign Minister Penny Wong expressed “grave concern” over the sentence, criticizing the broad application of the NSL and objecting to the prosecution. The U.S. consulate in Hong Kong strongly condemned the sentencing, stating that the defendants were “aggressively prosecuted and jailed for peacefully participating in normal political activity”. They also called for the immediate release of all political prisoners.

In response, China’s Foreign Ministry accused foreign governments of interfering in Hong Kong’s internal affairs and undermining the rule of law. Meanwhile, Hong Kong’s Security Minister Chris Tang emphasized that the heavy sentences send a clear message that any action endangering national security will not be tolerated.

Human Rights Watch described the sentences as evidence of Hong Kong's deteriorating civil liberties and judicial independence since the NSL’s implementation. Critics, including academics, say the trial demonstrates Beijing’s efforts to suppress dissent and re-educate the population on prioritizing national security. 

“The pro-democracy movement has been greatly weakened, with self-censorship becoming the norm,” said Stephan Ortmann, a political science professor. Activists report feeling the chilling effect firsthand. Emily Lau, former Democratic Party chair, shared that even informal gatherings are now fraught with fear of arrest. “That’s how stressful things are,” she said, though she vowed the fight for democracy would continue “peacefully and legally.”

The city’s current legislature, which the 47 originally sought to control, is now composed entirely of pro-Beijing loyalists. Citizens can only vote for 20 out of the 90 members of the Legislative Council in direct elections. A pro-Beijing group elects 40 members, giving them a majority, while the remaining members are chosen by professional groups, most of which lean pro-Beijing. Additionally, all lawmakers undergo a “patriotism” vetting process before they can stand for election. 

The sentencing on Tuesday highlights the dramatic transformation of Hong Kong, once known for its vibrant democracy movement, into a city where opposition voices are silenced or forced into exile. 

The U.S. government, along with several Western nations and human rights organizations, has argued that the law has been used to suppress peaceful dissent. 

During his first term, U.S. President Donald Trump imposed sanctions on Chinese and Hong Kong officials in response to the crackdown and declared that Hong Kong no longer enjoyed a high level of autonomy from China. After winning re-election earlier this month, Trump announced a proposed cabinet filled with several hardliners on China, which will put China in a rather tense situation.

 

 

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Xi Jinping’s diplomatic tour in Latin America

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On November 14 th, the president of China, Xi Jinping, departed on a nine-day Latin American diplomatic tour, which, according to analysts, is aimed at expanding the country’s influence in the region. 

During said visit, Xi Jinping attended the Asia-Pacific Economic Cooperation Summit and had a meeting with the president of the US, Joe Biden. The main subject of the discussion between presidents was the newly elected American president, Donald Trump. Xi stated that the goal of a “stable, healthy, and sustainable China-U.S. relationship” remains the same, and Beijing is ready to work with the new government – to uphold communication and deepen cooperation. 

Aside from the above-mentioned, some of the important talking points were cybersecurity, trade, Taiwan, and Russia. The leaders of these countries agreed upon the control of nuclear weapons and declared that the decisions thereon should be made by human beings and not artificial intelligence. Additionally, Xi Jinping and Joe Biden expressed concerns over the development of relations between Russia and Northern Korea (DPRK) and the deployment of troops by DPRK in Ukraine. According to the National Security Advisor of the United States, Jake Sullivan, President Biden appealed to China to use its influence and prevent the NPRK from escalating the situation in Ukraine with such deployments in the future. 

Notably, the leaders had a strict talk about Taiwan – Biden called on China to suspend its “destabilizing” military activities near the island. However, Xi placed the “Taiwan Independence separatist activities” at fault.

Moreover, one of the most crucial aims of Xi Jinping’s tour in Southern America is the inauguration of a Chinese-funded port in Peru. The port will be the biggest deep-water port on the continent and will reduce the time for transportation between the region and China. Importantly, in March 2024, the discussions about the Peruvian port took place at the Georgian Business Association with the ambassador of the Republic of Peru. According to the latter, the new port connecting Asia and Southern America will create new possibilities for deepening the trade relations with Georgia. 

Despite the belief that the port will be economically beneficial to Southern America and China, especially when China has difficulties with Europe and the new tariff system announced by Donald Trump, the US underlines that China could use the port for military intelligence activities. Apart from this, one of the main US diplomats in the region, Brian Nichols, called on the Latin American countries and their nations to use caution when dealing with Chinese investments. State-backed Chinese publication Global Times published an article about the practical use of the port and stated that it would not be a „weapon for geopolitical competition.“ Further, the article mentions the American concerns about the military use thereof as a „smear. “

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China’s new challenge in the UN – Elise Stefanik

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Elise Stefanik (R-New York), a prominent critic of China, is expected to be named as Donald Trump’s ambassador to the United Nations—one of the administration’s earliest major appointments. If confirmed by the Senate, Stefanik will represent the U.S. in a global body where China, as a permanent member of the Security Council, has been steadily increasing its influence on key international issues. Analysts suggest that Beijing is unlikely to welcome the anti-China stance of Trump’s prospective foreign policy team but may choose to bypass more hawkish officials by engaging with individuals in Trump’s orbit who have economic ties to China. 

“The Chinese often leverage figures close to Trump with significant economic connections to China to facilitate back-channel diplomacy,” noted Yun Sun, director of the China program at the Stimson Center. This dynamic could lead to tension between Trump’s stated goals and the harder-line China positions of his proposed Cabinet members. 

For example, Trump is reportedly considering reversing the ban on TikTok, the Chinese-owned social media platform, as part of a campaign promise. This potential policy shift could conflict with the views of figures like Stefanik, who has strongly supported banning TikTok due to concerns over Beijing’s potential use of the app for surveillance 

Elise Stefanik, known for her strong stance on holding China accountable for its role in the COVID-19 pandemic, criticized the Chinese Communist Party for withholding critical information about the virus and spreading misinformation, emphasizing the need for accountability in 2020. 

She has mentioned several times, that China is one of the greatest challenges in the 21st century. In 2020, in an interview with the New York Post, she said: “As we think about emerging threats, China is one of the most significant emerging threats that we face, not only in the United States but that we face when we’re partnered with our allies.”

Rep. Elise Stefanik has been a strong critic of China’s trade practices, advocating for the removal of China from U.S. supply chains and critical infrastructure, she has sponsored several hardline bills aimed at countering Chinese influence, including legislation targeting the Chinese drone manufacturer company, DJI. 

The UN’s ambassador role is vital to global cooperation and security. Therefore, the US citizens, as well as the whole world, are patiently waiting for Trump’s final decision and choices.

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“Tough on China” Marco Rubio nominated as the US Secretary of State

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Donald Trump nominated Marco Rubio, distinguished by his strictness towards China, as the Secretary of State. According to Reuters, this is a signal to Beijing that the new administration’s tough policy toward China may go beyond tariffs and include tougher tools. 

It is expected that the Senate will easily support Rubio’s nomination. Rubio holds senior positions in the Senate Foreign Relations and Intelligence Committees.

Rubio, described in a Senate biography as “a leading figure in rebalancing relations with China,” is a leading critic of China’s economic practices. Chinese media often refer to him as an “anti-China pioneer”. In his latest report on China’s industrial policy, Rubio writes that “through theft, market-distorting subsidies and strategic planning, Beijing now leads many of the industries that will define geopolitical advantage in the 21st century.” 

David Firestein, a former U.S. diplomat with expertise on China, said, “Rubio believes in his heart that China is an enemy of the United States.” He added, “That’s going to color everything he does with respect to China,” noting that Rubio’s view of zero-sum competition with China would “raise the decibel level” of U.S.-China relations. 

One of the important China-related issues that Rubio focuses on is the human rights record in the People’s Republic. He was one of the supporters of the Uyghur Forced Labor Prevention Act. The act was intended to ban the import of Chinese products into the United States in response to violations of the rights of Muslim minorities in China. His open stance on the Uyghurs was one of the reasons why China sanctioned Rubio in 2020. 

Interestingly, Rubio has twice been the target of sanctions from Beijing. In 2020, the People’s Republic sanctioned Rubio for his support of the Hong Kong demonstrations. Rubio would be the first US secretary of state to be subject to active travel restrictions from China. Notably, Rubio, in turn, called for US visa sanctions against Chinese officials. In 2023, Rubio urged the State Department to bar US-sanctioned Hong Kong Chief Executive John Lee from attending the Asia-Pacific Economic Cooperation Summit in San Francisco. 

It is noteworthy that over the past years, Rubio has considered China a threat to US national security. He was one of the leading figures in the effort to blacklist a Chinese battery company, CATL. Rubio has advocated limiting tax benefits for American companies investing in China and tightening restrictions on the export of American technology to China. 

It is noteworthy that Rubio accused China of facilitating the conflict in Ukraine, as he considered the Russian attack to be part of the Chinese strategy, which aims to replace the existing world order with the “Moscow-Beijing axis”. Therefore, he supported the legislative initiatives that aimed at reducing China’s political or economic influence. 

Trump’s Secretary of State nominee’s strong support for Taiwan may be particularly uncomfortable for Beijing. Rubio supported a free trade agreement and unrestricted relations between US and Taiwan officials. Analysts predict that Taiwan will buy more weapons from the US during Trump’s presidency than before and will likely receive favorable terms from Rubio’s State Department. 

The Chinese embassy in Washington did not comment on Rubio’s nomination for secretary of state. Meanwhile, embassy spokesman Liu Pengyu expressed hope that Beijing would work with the new administration to promote the development of relations in a “stable, healthy, and sustainable direction”.

 

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Trump to Name China Hawks for Key Security and Foreign Policy Roles

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In a move signaling a tougher stance on Beijing, President-elect Trump has chosen key figures known for their hawkish views on China for top cabinet roles. John Ratcliffe, Pete Hegseth, and Michael Waltz are set for high-ranking positions in national security, all perceiving China as a major geopolitical threat.

Multiple sources have confirmed the possibility of appointing Michael Waltz, a Republican congressman, war veteran, and retired National Guard officer, to the position of national security adviser. 

Naming Waltz is a “strong sign that Trump’s foreign policy priority will focus on China above all else,” said Neil Thomas, a fellow for Chinese politics at the Asia Society Policy Institute’s Center for China Analysis. Though there will be a near-term focus on resolving the wars overseas, “over the next four years, China — by far and away — will be the major focus,” he said. 

Waltz has been a huge critic of China and supports a more aggressive foreign policy. The congressman opposed the idea of the US participating in the 2022 Winter Olympics in Beijing. His reason behind the boycott was his belief that China suppressed information about COVID-19 during the pandemic outbreak. In 2021, Waltz asserted that America is in “a Cold War with the Chinese Communist Party.” 

In an alarming manner to the Chinese government, Waltz strongly supports Taiwanese independence, stating on X: “We must learn from Ukraine by addressing the threat of the CCP (Chinese Communist Party) and arming Taiwan NOW before it’s too late”. Although the USA, like most states, does not officially recognize Taiwan, it is the largest weapons supplier to the island country. 

Waltz was the one who raised concerns in 2022 about the Canada-China business deal. Under the deal’s conditions, a Chinese state-owned company, China’s Zijin Mining Group Ltd., took over the Canadian lithium mining firm, Neo Lithium Corp. He called out Biden’s administration and demanded the answer if they knew about the potential deal, and if they did, then why approve of it? Waltz stated that there were national security concerns, as he considers the Chinese Communist Party as “an increasingly dangerous and threatening adversary.” 

In 2020 Michael Waltz co-authored a Republican Study Committee (RSC) report on National Security Strategy. The report described Bidzina Ivanishvili, the Georgian Dream honorary chair and oligarch, as “a close ally of Putin.”

The report advocated for stronger measures to support NATO, reinforce alliances, and strengthen democratic partners like Ukraine and Georgia, both of which have faced Russian aggression. It criticized existing sanctions on Russia for inadequately addressing “Putin’s foreign cronies,” specifically naming Ivanishvili, stating, “Bidzina Ivanishvili, the richest man in Georgia, is a close ally of Putin and involved in destabilizing Georgia on Russia’s behalf.”

A 50-year-old retired Army Green Beret and National Guard colonel, known for his long-standing stance as a China hawk will spearhead efforts to develop strategies to counter China’s significant military buildup—a key focus of Trump and his campaign team in the election. Waltz has already advised the US to be more careful of the potential conflict in the region caused by China’s nonstop activities in the Asia-Pacific. 

The national security adviser occupies a highly influential role that bypasses the need for Senate confirmation. Waltz’s responsibilities will include briefing Trump on essential national security issues and ensuring coordination among various agencies.

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Vietnam expands chip packaging footprint as investors reduce China links

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Foreign companies are expanding their chip testing and packaging capabilities in Vietnam. According to Reuters, due to strained relations between the West and China, chip-related industrial activity is gathering pace to move away from China. 

The semiconductor manufacturing sector is currently dominated by China and Taiwan, although Vietnam is among the fastest-growing countries. 

Hana Micron’s vice president in Vietnam, Cho Hyung Rae, told Reuters the company was expanded to the country to meet demand from customers looking to outsource some of their production from China. 

The South Korean company plans to invest $903.49 million in its memory chip packaging operations in Vietnam. Last year, US-based Amkor Technology unveiled a $1.6 billion plan to build a state-of-the-art semiconductor manufacturing facility. 

The Biden administration has encouraged the growth of Vietnam’s capacity in the “back-end” segment of chip manufacturing amid strained trade relations between Washington and Beijing. In July 2023, Biden’s Secretary of the Treasury Janet Yellen visited Hanoi to meet with Prime Minister Phạm Minh Chinh and discuss deepening US-Vietnam trade and economic relations; She made a direct reference to Vietnam’s critical role in the semiconductor industry and named American semiconductor manufacturing companies that have branches in Vietnam. Arizona-based Amkor Technology was among the companies mentioned. 

According to the U.S. Semiconductor Industry Association and the Boston Consulting Group, Vietnam’s share of the global chip assembly, testing, and packaging industry will be 8-9% by 2032 due to large investments by foreign companies. This figure was 1% in 2022.

Source: Reuters

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How is the potential Chinese investor in Anaklia linked to the tragic incident in Serbia that left 14 people dead?

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The incident in Serbia, which led to the tragic loss of 14 lives, occurred at a railway station renovated by the same company now considered a potential Chinese investor in the Anaklia port project.

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China’s Nuctech launches new appeal against EU inspection of company

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Chinese security company Nuctech has filed a new lawsuit against the European Union, challenging the European Court of Justice’s decision to dismiss its previous case regarding company inspections. Nuctech had initially sought to suspend the EU’s inspection of its operations. 

“We believe the court “decision lacked sound legal reasoning and failed to provide a convincing justification for the refusal,” Nuctech stated. The company has now appealed the ruling at the European Court of Justice in Luxembourg. 

In a statement, a Nuctech Europe representative affirmed that the company would defend its rights and expressed readiness to cooperate with the European Commission. “We believe the appeal process will result in a more fair and reasonable outcome,” the representative added. 

Nuctech had initially filed a lawsuit against the European Commission following raids on its Dutch and Polish offices, arguing that there was insufficient evidence to justify the inspections. 

In its ruling, the court upheld the European Commission’s authority to investigate and request information from any business operating within the EU, regardless of ownership—whether by member states or non-member countries—to ensure compliance with EU regulations and prevent potential violations of the law. 

Nuctech manufactures body and baggage scanners for airports and ports in over 170 countries. It is one of several Chinese companies blacklisted by the U.S. government as a threat to national security.

Source: https://www.reuters.com/business/chinas-nuctech-launches-new-appeal-against-eu-inspection-company-2024-10-23/

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