Sunday 24th of November 2024

the OECD is supporting a more level playing field....

How is the OECD supporting a more level playing field?

While subsidies can be helpful policy tools for addressing emergencies or market failures - where other instruments are less effective or appropriate - they can also distort trade and competition depending on their design and target. Much like doping in sports, government support can give some firms a leg-up on their competitors that is not grounded in economic or market forces, but instead in the generosity of the government supporting them. This undermines fair competition and the willingness of economies to accept the results of that competition. Support may in turn push other countries to respond in kind, to the detriment of consumers, taxpayers, and other governments that do not have sufficient fiscal space, ultimately undermining public support for, and confidence in, an interconnected global economy.

Building on longstanding work measuring government support in agriculture, fossil fuels, and fisheries, the OECD has developed tools and methods for identifying and measuring subsidies in key industrial sectors. This work has used a novel firm-level approach to look into the support that governments provide to major industrial groups. The granular evidence thus obtained from subsidy recipients casts an unprecedented light on the various ways in which governments support manufacturers, including government grants, corporate tax concessions, debt and equity financing provided on below-market terms, and subsidised energy inputs. It highlights the important role that state enterprises can play as relatively large recipients of support but also as providers of support themselves, e.g. where state banks offer loans to companies at below-market rates.

The choice to rely on data collected at the level of individual firms is, importantly, one of necessity, reflecting the lack of government transparency that persists around public support. A key finding of OECD work on industrial subsidies is indeed that government information on these subsidies is generally poor. This hinders understanding of the scale, types, and effects of subsidies as well as efforts to revisit trade rules so they can better address government support.

Work at the OECD is ongoing to identify and quantify the use of industrial subsidies by governments. The OECD has already completed three sectoral studies looking at government support in key industrial sectors (aluminium, semiconductors, and rolling stock) and two studies focussing on specific support instruments (below-market finance and subsidised energy inputs). Work is also underway to capitalise on the firm-level data collected for these earlier studies in order to more systematically track government support across countries, sectors, years, and support instruments.

https://www.oecd.org/trade/topics/levelling-the-playing-field/

 

GUS: THIS IS A LIMITED ASSESSMENT OF SUBSIDIES.....

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The United States has complained about China’s use of subsidies and other protectionist trade measures to promote its advanced manufacturing and other high-tech industries. But Beijing is also making use of heavy subsidies and trade-distorting policies in agriculture and fisheries — two sectors of critical importance to the developing world.

Agricultural subsidies in richer countries give their farmers an unfair advantage in global markets, depressing prices and undermining the livelihoods of farmers in the developing world. Historically, the United States and the European Union were the chief culprits but China’s agricultural subsidies now vastly exceed those of the traditional subsidisers. In 2016, China provided an estimated US$212 billion in subsidies [FOR 1.5 BILLION PEOPLE] and other forms of trade-distorting support to its farmers, significantly more than the European Union (US$100 billion) [FOR 750 MILLION PEOPLE] and the United States (US$33 billion) [FOR 340 MILLION PEOPLE]. 

THUS ON AVERAGE, THE EU AND CHINA SUBSIDISE ON THE SAME LEVEL, THE US SUBSIDISE “LESS”…

YET WE NEED TO CONSIDER:

 

DIRECT AND INDIRECT SUBSIDIES…. 

AMERICAN DEBT IS A DISCREET FORM OF SUBSIDY:

ONE TRILLION DOLLAR PER THREE MONTHS OR FOUR TRILLION PER YEAR

THIS ISN'T A LEVEL PLAYING FIELD...

AS WELL, THE USA VOTED FOR 100 BILLION ASSISTANCE TO UKRAINE, TAIWAN AND ISRAEL OF WHICH UP TO NINETY PER CENT ARE SUBSIDIES TO THE INDUSTRIAL MILITARY COMPLEX...

THIS ISN'T A LEVEL PLAYING FIELD... THE AMERICAN EMPIRE CHEATS FAR MORE THAN THE OTHER COUNTRIES.

ON TOP OF THIS ONE HAS TO ADD UNILATERAL SANCTIONS THAT SOUND LIKE STAGED PENALTIES....

 

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not guilty china....

European Commission President Ursula von der Leyen intends to talk to visiting Chinese President Xi Jinping about policies that she claims pose a threat of de-industrialization in the bloc.

The Chinese leader arrived in France on Sunday as part of a six-day, three-country trip to Europe, his first since 2019. The head of the EU executive branch said she would discuss “current imbalances” in Chinese trade during talks with Xi on Monday.

”China is currently manufacturing, with massive subsidies, more than it is selling due to its own weak domestic demand. This is leading to an oversupply of Chinese subsidized goods, such as EVs (electric vehicles) and steel, that is leading to unfair trade,” she claimed.

”Europe cannot accept such market-distorting practices that could lead to de-industrialization in Europe,” von der Leyen added.

In the last several weeks, the EU authorities have launched investigations into alleged unfair Chinese practices, including restrictions on the supply of European medical devices to the Asian nation’s market and subsidies for Chinese firms producing wind turbines, electric vehicles, and trains.

Meanwhile, China has opened an anti-dumping probe into brandy imported from the EU, which particularly affects French exporters. The mutual investigations are perceived as a mounting tit-for-tat stand-off over protectionism. Von der Leyen has pushed for “de-risking” trade with China, but has not gone as far as to advocate decoupling from the economic powerhouse.

EU members have largely decoupled their economies from Russia in an attempt to penalize Moscow over the Ukraine conflict. The loss of access to cheap Russian natural gas has hit energy-intensive industries in Western Europe, forcing businesses to move manufacturing to other locations. The US was among their primary destinations, as the government offered subsidies to certain producers under the Inflation Reduction Act of 2022.

In an op-ed published in the French press ahead of his visit, Xi said Beijing was committed to reaching “new vistas” in its relationship with the country. He wrote: “France is advancing re-industrialization based on green innovation, whereas China is accelerating the development of new quality productive forces.”

After France, the Chinese president is scheduled to visit EU member Hungary and Russia-friendly non-member Serbia.

 

https://www.rt.com/business/597048-leyen-xi-meeting-deindustrialization/

 

READ FROM TOP TO UNDERSTAND THAT THE AMERICAN EMPIRE IS RESPONSIBLE FOR EUROPE DEINDUSTRIALISATION... (INCLUDING BLOWING UP THE NORDSEA PIPELINES!)

 

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a new system....

 

The Russia–Iran–China search for a new global security order

 

BY PEPE ESCOBAR

 

The Hegemon has no idea what awaits the Exceptionalist mindset: China has started to decisively stir the civilizational cauldron without bothering about an inevitable array of sanctions coming by early 2025 and/or a possible collapse of the international financial system. 

Last week, US Secretary of State Anthony Blinken and his list of delusional US demands was welcomed in Beijing by Foreign Minister Wang Yi and President Xi Jinping as little more than an annoying gnat. Wang, on the record, stressed that Tehran was justified in defending itself against Israel’s shredding of the Vienna Convention when it attacked the Iranian consulate in Damascus. 

At the UN Security Council, China now openly questions not only the state terror attack on the Nord Streams but also the US–Israel combo’s blocking of Palestinian statehood. Moreover, Beijing, just like Moscow recently, hosts Palestine’s political factions together in a conference aiming to unify their positions.   

Next Tuesday, only two days before Moscow celebrates Victory Day, the end of the Great Patriotic War, Xi will land in Belgrade to remind the whole world about the 25th anniversary of the bombing of the Chinese embassy by the US, UK, and NATO. 

Russia, meanwhile, provided a platform for the UNRWA – the UN relief agency for Palestinian refugees, which Israel has sought to defund – to explain to high representatives of BRICS-10 the cataclysmic humanitarian situation in Gaza, as described by UNRWA Commissioner-General Philippe Lazzarini. 

In short, serious political business is already being conducted outside of the corrupted UN system, as the United Nations disintegrates into a corporate shell with the US dictating all terms as the largest shareholder. 

Yet another key example of BRICS as the new UN: Russian Security Council chairman Nikolai Patrushev met in St. Petersburg with his Chinese counterpart Chen Wenqing on the sidelines of the 12th International Security Summit, congregating over 100 nations, including the security heads of BRICS-10 members Iran, India, Brazil, and South Africa, as well as Iraq. 

The SCO security show

But the key crossroads these past few days was the Shanghai Cooperation Organization (SCO) defense summit in Astana, Kazakhstan. For the first time, the new Chinese Defense Minister, Dong Jun, met with his Russian counterpart, Sergei Shoigu, to emphasize their comprehensive strategic partnership. 

Dong, significantly, stressed the “dynamic” nature of China–Russia military interaction, while Shoigu doubled down, saying it “sets a model for interstate relations” based on mutual respect and shared strategic interests. 

Addressing the full SCO assembly, Shoigu emphatically refuted the massive western propaganda drive about a Russian “threat” to NATO. 

Everybody was at the SCO defense ministers’ meeting – including, at the same table, India, Iran, Pakistan, and Belarus as an observer. Minsk is eager to join the SCO. 

The interlocking Russia–Iran–China strategic partnerships were totally in sync. Apart from Dong meeting Shoigu, he also met Iranian Defense Minister Brigadier General Mohammad Reza Ashtiani, who lavishly praised Beijing’s condemnation of the Israeli terror air strike in Damascus. 

What is happening now between Beijing and Tehran is a replay of what started last year between Moscow and Tehran, when a member of the Iranian delegation on a visit to Russia remarked that both parties had agreed on a mutual, high-level “anything you need” relationship.  

In Astana, Dong’s support for Iran was unmistakable. Not only did he invite Ashtiani to a security conference in Beijing, mirroring the Iranian position, he also called for an immediate ceasefire in Gaza and the delivery of humanitarian aid.   

Shoigu, meeting with Ashtiani, provided extra context when he recalled that “the joint fight against international terrorism in Syria is a vivid example of our long-standing friendly relations.” The Russian defense minister then delivered his clincher: 

The current military-political situation and threats to our states oblige us … to common approaches to building a just world order based on equality for all participants in the international community.

A new global security order

Establishing a new global security order is right at the heart of BRICS-10 planning – on par with the de-dollarization debate. All of this is anathema to the collective west, which is incapable of understanding the multifaceted, intertwined Russia, Iran, and China partnerships.   

And the interaction goes on in person. Russian President Vladimir Putin will be visiting Beijing later this month. On Gaza, the Russia–Iran–China position is in complete sync: Israel is committing genocide. For the EU – and NATOstan as a whole – this is not genocide: the bloc supports Israel no matter what.

After Iran, on 13 April, changed the game in West Asia for good, without even using their finest hypersonic missiles, the key question for the Global Majority is stark: in the end, who will restrain the genocidals, and how? Diplomatic sources hint this will be discussed face-to-face by Putin and Xi. 

As one Chinese scholar, with unique aplomb, remarks: 

This time, the barbarians are facing a 5,000-year continuing written civilization, armed with Sun Tzu’s Art of War, Mao thought, Xi’s dual circulation strategy, Belt and Road, BRICS, renminbi digitalization, Russia and China unlimited, the world’s most powerful manufacturing industry, tech supremacy, economic powerhouse, and the backing of the Global South.

All that against a polarized Hegemon in turmoil, with its genocidal aircraft carrier in West Asia totally spinning out of control.

US threats of a “clear choice” between ending several key strands of the Russia–China strategic partnership or facing a sanctions tsunami don’t cut it in Beijing. The same applies to Washington’s wishful attempts at preventing BRICS members from ditching the US dollar. 

Russian Foreign Minister Sergey Lavrov has made it quite clear that Moscow and Beijing have nearly reached the point of abandoning the US dollar in bilateral trade. And the outright theft of Russian assets by the collective west is the ultimate red line for BRICS – and all other nations watching with horror – as a whole: this is definitely a “non-agreement capable” Empire, as Lavrov has been emphasizing since late 2021.

Yaroslav Lisovolik, founder of BRICS+ Analytics, dismisses the Hegemon’s threats against BRICS as the road map toward an alternative payment system is still in its infancy. As for Russia–China trade, the non-dollar high-speed train has already left the station. 

Yet the key question remains: how will Russia–Iran–China (RIC), as BRICS leaders, SCO members, and simultaneously top three “existential threats” to the Hegemon, be able to start implementing a new global security architecture without staring down the genocidals. 

https://thecradle.co/articles/the-russia-iran-china-search-for-a-new-global-security-order

 

 

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war is peace....

 

The Great Ukraine Robbery is Not Over Yet

 

by  

 

The ink was barely dry on President Biden’s signature transferring another $61 billion to the black hole called Ukraine, when the mainstream media broke the news that this was not the parting shot in a failed US policy. The elites have no intention of shutting down this gravy train, which transports wealth from the middle and working class to the wealthy and connected class.

Reuters wrote right after the aid bill was passed that, “Ukraine’s $61 billion lifeline is not enough.” Senate Minority Leader Mitch McConnell went on the Sunday shows after the bill was passed to say that $61 billion is “not a whole lot of money for us…” Well, that’s easy for him to say – after all it’s always easier to spend someone else’s money!

Ukraine’s foreign minister,  Dmytro  Kuleba, was far from grateful for the $170 billion we have shipped thus far to his country. In an interview with Foreign Policy magazine as the aid package was passed, Kuleba had the nerve to criticize the US for not producing weapons fast enough. “If you cannot produce enough interceptors to help Ukraine win the war against the country that wants to destroy the world order, then how are you going to win in the war against perhaps an enemy who is stronger than Russia?”

How’s that for a “thank you”?

It may be understandable why the Ukrainians are frustrated. Most of this money is not going to help them fight Russia. US military aid to Ukraine has left our own stockpiles of weapons depleted, so the money is going to create new production lines to replace weapons already sent to Ukraine. It’s all about the US weapons industry. President Biden admitted as much when he said, “we are helping Ukraine while at the same time investing in our own industrial base.”

This is why Washington Is desperate to make sure that if Donald Trump returns to the White House, the “Ukraine” gravy train cannot be shut down by his – or future – administrations. Last week news broke that the Ukrainian government was in negotiations with the Biden Administration to sign a ten-year security agreement that would lock in US funding for Ukraine for the next two and a half US Administrations. That would unconstitutionally tie future presidents’ hands when it comes to foreign policy and would leave Americans on the hook for untold billions more dollars taken from them and sent to the weapons industry and to a corrupt foreign government.

The US weapons industry and its cheerleaders in Washington DC are determined to keep Ukraine money flowing…until they can figure out a way to gin up a war with China after losing the current war with Russia. That, of course, depends on whether there is anything left of us when the smoke clears.

When President Biden signed the $95 billion bill to keep wars going in Ukraine and Gaza and to provoke a future war with China, he called it “a good day for world peace.” Yes, and “War is peace.” Debt is good. Freedom is slavery. We are living in a post-truth society where billions spent on pointless wars are “not a whole lot of money.” But the piper will be paid and the debt will be cleared.

https://ronpaulinstitute.org/the-great-ukraine-robbery-is-not-over-yet/

 

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xi visits europe....

There’s a careful plan behind Xi’s European tour

China wants to preserve and strengthen its foothold in and around the EU and is investing diplomatic effort where it is worth it

By Timur Fomenko

 

Chinese President Xi Jinping is on a state visit to Europe. On what is his first trip to the EU since 2019, he has visited France and Hungary and concluded the tour in Serbia.

The trip comes at a pivotal moment, when European Commission President Ursula von der Leyen is attempting to flip the EU institution against China, having initiated dozens of probes on Chinese products in recent weeks. Likewise, the US has aggressively ramped up rhetoric accusing Beijing, accusing it of complicity in the Ukraine conflict, designed of course to undermine Xi’s credibility on his trip.

Despite von der Leyden’s blatant pro-US bias, it is quite obvious that the loyalty of EU nations has become the subject of a battle between Washington and Beijing for influence in the emerging geopolitical struggle. Although of course the EU is in theory aligned with the US, through its dominance of institutions such as NATO, China’s foreign policy for many years now has focused on attempting to exert all influence to prevent the EU from fully aligning itself with Washington’s goal of containing Beijing, instead seeking to preserve open economic ties with the continent. To this end China has devoted an extensive diplomatic effort to Europe, an effort it doesn’t feel worth making towards the US, or even the UK.

Continental Europe is a mixed bag, and depending on the political status quo there are some states who are favourable to China, and some who are not (such as the Baltic states), and thus China sees it important to uphold the bastion of support where it can. As a result, Xi has dedicated his visit to three countries who are currently favourable towards Beijing: France and Hungary within the EU and Serbia outside the bloc. First, France is a Western-aligned state which has always been famous for its “maverick” foreign policy derived from its position as a former empire in its own right. Emmanuel Macron in particular has always been keen to go against the grain and has continued to engage with Beijing, even visiting China himself last year.

Traditionally, the most enthusiastic large EU country towards China is in fact Germany, and that is still visible, for example in Chancellor Olaf Scholz’s visit to Beijing several weeks ago. However, German politics has become a domestic tug of war over China, as the foreign ministry is controlled by the neoconservative Green Annalena Baerbock, who has attempted to try and undermine ties with Beijing. This of course has been met with resistance from the German Industry lobby, while US-funded think tanks also try to undermine German ties with China to the best of their ability. As a result, it is not politically convenient for Xi to visit Germany, and thus he chose France, where opinions seem more comfortable with its “maverick” role.

His second destination, Hungary, under Viktor Orban has carved out a niche as being the most pro-Beijing state in the whole EU. Orban has an even more maverick foreign policy which also seeks healthy ties with Russia. However, its small size means it cannot steer the entire bloc’s agenda. Despite this, Budapest is a very important partner for Beijing because it serves as a gateway for Chinese investment and other projects to amplify themselves on the continent when doors are being shut elsewhere. Such as, building an overseas campus for Fudan University, or a Chinese electric car factory, which is critically important if the commission is wielding the threat of tariffs.

But not only that, Hungary occupies a strategic position in central Europe above the Balkans which is the terminus of a Chinese economic corridor that starts with the port it owns in Piraeus, Greece. And between Greece and Hungary lies Serbia. Although Serbia is not part of the EU, it is a critically important nation in the Balkans which has stormy relations with the West owing to the massive bombing campaign NATO waged against it in the 1990s. 

It is a nation which dislikes the West, but has no power to directly resist as it faces pressure to integrate into the EU, and a sovereignty issue over Kosovo. As a result, Serbia’s well being depends on its ability to court relationships with third-party powers such as Russia and China to secure geopolitical clout.

For China, Serbia thus becomes another focus point, or safe-haven, to project influence into Europe. Since the Ukraine conflict began, China has taken the subtle position of opposing the expansion of US-led western institutions, recognising them as a tool of hegemony that will be used against it. As a result, strengthening ties with Belgrade has become part of Beijing’s effort to keep its foothold in the continent, both politically and economically – it has created as a commercial passage utilising its role as part of the Balkan corridor. 

Hence, Xi is reportedly going to try and upgrade relations with Serbia. After all, it is a place where China can invest and thus, sell to Europe, without EU and NATO interference. It is also hoped Serbia will join BRICS eventually.

Thus, while Xi’s visit to France, one of the EU’s leading states, is to ensure the bloc does not unite against Beijing, his visit to Serbia and Hungary is strategic by design in using them as projection points in ensuring China’s commercial ties with Europe can be upheld amidst resistance by powerful individuals such as Ursula von der Leyen.

https://www.rt.com/news/597183-xi-france-hungary-serbia/

 

 

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