Trump says it's 'fine' if September China talks are cancelled

China rare earths group supports counter-measures against US 'bullying'

US holds off on Huawei licenses as China halts farm purchases

"We have the standard of the world", the president said as he left the White House for a fundraiser in the Hamptons.

"China wants to do something, but I'm not ready to do anything yet". They've had the worst year that they've had in many, many decades and it's getting only worse.

China's rare earth producers say they're ready to weaponize supply, and pass any costs directly on to USA consumers, as reported by the South China Morning Post (SCMP).

Stocks resumed their decline, capping a turbulent week dominated by concerns over an escalating trade war between the USA and China.

Mr Trump was fuming last week when negotiations in Shanghai broke down, and, against the advice of advisers, he slapped additional tariffs on China.

The countries have imposed tariffs on $360 billion in two-way trade and with the new round Trump announced, all Chinese goods would be subject to punishing duties. He accused the Chinese regime of failing to deliver on its pledges to buy more US agricultural products and to stem the flow of the synthetic opioid fentanyl into the United States.

Commerce Secretary Wilbur Ross, responsible for granting the special licenses to qualified companies, says he has received 50 requests from firms eager to resume sales to the Huawei and that a decision is "pending".

The US Treasury then declared China a currency manipulator, after the yuan lost value in the face of the new round of tariffs due to take effect September 1.

During a press conference on Friday, President Donald Trump declared that the United States will not be doing business with Huawei (YouTube link). "It's much simpler not to do any business with Huawei", he said.

Trump stood by his currency accusation, saying that the fact that China was subsequently able to stem the yuan's slide was proof of manipulation and was offsetting USA tariffs on Chinese imports, blunting their impact on American consumers. "The cost of tariffs imposed by the United States should be borne by the U.S. market and consumers", the association said. On Aug. 5, the Chinese renminbi weakened to its lowest level since 2008, slipping to more than 7 per dollar.

The yen traded near an eight month high versus the dollar on Friday as renewed concerns about the U.S.

"FX markets have been resuscitated by renewed hard Brexit fears and the intensification of trade/currency wars", Bank of America Merrill Lynch analysts said in a research note. Days later, China let the yuan currency fall sharply. But on August 5, the yuan dropped nearly 2 percent in one day, reaching 7.053 per dollar.

Any hopes for a trade war resolution seem to be fading.

The comments Friday capped off a week of dramatic escalations in the yearlong economic dispute between the United States and China, which has together led to more than $350 billion worth of tariffs and weighed on global trade flows. Washington has long fought to deter currency manipulation, arguing that it has led to the loss or displacement of millions of American jobs.

"We're not going to do business with Huawei", Trump said during the conference.

"No I wouldn't do that", Trump said when asked if he wanted to devalue the dollar. However, if the Federal Reserve continues to reduce rates, "that would automatically bring down the dollar a little bit and it would make it easier" for the American manufacturers to sell goods overseas, he added.

"We have a rocket ship".

Asia ex-Japan had ended down 2.3% for the week after data showed China's first decline in producer prices in three years, compounding the Huawei disappointment.

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