Is Washington preparing to play the Taiwan card with Beijing again?

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The bills still need US Senate and presidential endorsement to become law, but if passed that will mean a fundamental change in the Whashingon-Beijing relations. The Taiwan Travel Act in fact is designed to improve official exchanges between Washington and Taipei and it would allow US government officials to travel to Taiwan and meet their counterparts and vice versa. Such meetings have been avoided since Washington shifted diplomatic recognition from Taipei to Beijing in 1979. The other piece of legislation instead aims to help Taiwan regain observer status at the World Health Assembly, the decision-making body of the World Health Organisation. The two bills show many forces in the US are attempting to flare up the Taiwan question once again and use it as leverage against China.

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China’s factory inflation slowest in 13 months and this gives policymakers a freer hand to focus on industrial overcapacity and pollution. China’s producer price index (PPI) slid to the lowest level since November 2016 last month with 4,9%, because the government’s war against winter smog dented factory demand for raw materials in a sign the world’s second largest economy has started to slow. The data also showed consumer inflation accelerating less than expected and remaining well within the central bank’s comfort zone. The government repression on smog in the heavily industrialized northern provinces has in fact hit demand for raw materials and have weighed on investment. While pollution curbs have had a disinflationary effect on producer prices, the resulting supply disruptions have triggered fears of supply shortages in some segments, giving a major boost to upward pressure to prices.

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