Month: March 2018

Jonathan Garland’s fascination with architecture started early: He spent much of his childhood designing Lego houses and gazing at Boston buildings on rides with his father away from their largely minority neighborhood. 

But when Garland looked around at his architectural college, he didn’t see many who looked like him. There were few black faces among students, and fewer teaching skills or giving lectures. 

“If you do something simple like Google ‘architects’ and you go to the images tab, you’re primarily going to see white males,” said Garland, 35, who’s worked at Boston and New York architectural firms. “That’s the image, that’s the brand, that’s the look of an architect.”

And that’s not uncommon in other lucrative fields, 50 years after the Reverend Martin Luther King, a leader in the fight for equal employment opportunities, was assassinated.

An Associated Press analysis of government data has found that black workers are chronically underrepresented compared with whites in high-salary jobs in technology, business, life sciences and engineering, among other areas. Instead, many black workers find jobs in low-wage, less prestigious fields where they’re overrepresented, such as food service or preparation, building maintenance and office work, the AP analysis found.

‘Other America’

In one of his final speeches, King described the “Other America,” where unemployment and underemployment created a “fatigue of despair” for African-Americans. Despite economic progress for blacks in areas such as incomes and graduation rates, some experts say many African-Americans remain part of this “Other America,” with little hope of attaining top professional jobs, thanks to systemic yet subtle racism.

The AP analysis found that a white worker had a far better chance than a black one of holding a job in the 11 categories with the highest median annual salaries, as listed by the Bureau of Labor Statistics. The ratio of white-to-black workers is about 10-to-1 in management, 8-to-1 in computers and mathematics, 12-to-1 in law and 7-to-1 in education — compared with a ratio of 5.5 white workers for every black one in all jobs nationally. The top five high-salary fields have a median income range of $65,000 to $100,000, compared with $36,000 for all occupations nationwide.

In Boston, a hub for technology and innovation and home to prestigious universities, white workers outnumber black ones by about 27-to-1 in computer- and mathematics-related professions, compared with the overall ratio of 9.5-to-1 for workers in the city. Overall, Boston’s ratio of white-to-black workers is wider than that of the nation in six of the top 10 high-income fields.

Boston, where King had deep ties, earning his doctorate and meeting his wife, has a history of racial discord. Eight years after King’s assassination, at the height of turbulent school desegregation, a Pulitzer Prize-winning photograph from an anti-busing rally at City Hall showed a white man attacking a black bystander with an American flag.

The young victim was Theodore Landsmark. He’s now 71, a lawyer, an architect and director of Northeastern University’s Dukakis Center for Urban and Regional Policy.

Why progress lags

He said “structural discrimination” is the overarching cause of disproportionate race representation in high-salary fields. Landsmark and others say gains are elusive for myriad reasons: Substandard schools in low-income neighborhoods. White-dominated office cliques. Boardrooms that prefer familiarity to diversity. Discriminatory hiring practices. Companies that claim a lack of qualified candidates but have no programs to train minority talent.

Some also say investors are more likely to support white startups. When Rica Elysee, a lifelong Boston resident who grew up in predominantly black neighborhoods, brought her idea of an online platform linking beauty professionals with customers for in-home appointments to investors, she was shunned, she said.

“They said I didn’t belong in the program, that they couldn’t identify with it because they weren’t black,” said Elysee, 32, who initially marketed BeautyLynk to black women like herself. “I remember crying pretty harshly. They couldn’t relate to what I was doing.”

Some even advised her to move out of Boston, which had a booming innovation economy but was “not encouraging minorities in the tech space,” she said. Three years later, Elysee said BeautyLynk is slowly growing but still needs capital.

Most American metro areas are like Boston, with AP’s analysis showing that racial disparities in employment are indifferent to geography and politics. California’s Silicon Valley struggles to achieve diversity in computer fields. In Seattle, home to Amazon, whites outnumber blacks nearly 28-to-1 in computer- and math-related fields. Financial powerhouse New York has a 3-to-1 ratio of white-to-black workers in all occupations, but nearly 6-to-1 in business and finance. Hollywood shows inequality in entertainment, with almost nine whites for every black worker.

In Atlanta, King’s hometown, the proportional representation of black-to-white workers is close to even in many fields. Many reasons are cited. Atlanta has historically black colleges and universities such as King’s alma mater, Morehouse; the first black mayor, Maynard Jackson, pressed for policies helping black professionals after his 1973 election; and events like the 1996 Olympics opened doors for entrepreneurs of all races.

Nationally, it’s much different

Atlanta is an exception. For nearly all of the past half-century, black unemployment nationally has hovered at about twice that of whites.

President Donald Trump touted on Twitter that December’s 6.8 percent unemployment rate for blacks was the lowest in 45 years — a number critics say ignores a greater reality. For example, in an economy that increasingly demands advanced degrees, Department of Education data show that black representation among graduates in science, tech, engineering and mathematics peaked at 9.9 percent in 2010 and has been slowly declining.

In Boston, Democratic Mayor Marty Walsh said in a recent speech that the city is addressing the issue and is committed to placing 20,000 low-income residents in “good-paying jobs” by 2022.

Landsmark said stronger role models may be a solution. As Boston Architectural College’s president, he mentored Garland. They discussed race issues in the professional world — as when Garland, trying to land jobs in his neighborhood, realized many people who looked like him were unfamiliar with the very concept of architecture. He once had to explain to a homeowner who wanted his roof reframed: “I’m not a builder, I’m an architect.”

Today, Garland speaks at high schools and works at the DREAM Collaborative, which focuses on projects in low-income neighborhoods.

“I know the barriers exist in other folks’ minds, and I have to disprove that,” he said. “I keep myself focused on the issues.”
…

As the world’s population heads toward 10 billion by midcentury, experts are wrestling with how to feed the world without wrecking the planet. It’s not easy to find foods with lower environmental impact that still taste as good as the ones they are intended to replace. But chefs and environmentalists are both cheering one new menu item: the mushroom-blended burger. VOA’s Steve Baragona has more.
…

Traditional handicrafts from Pakistan are exported to many countries around the world. One item that appears to be gaining in popularity are the country’s hand-made bamboo curtains. VOA’s Saman Khan has more in this report from Lahore, Pakistan, narrated by Sarah Zaman.
…

A financially distraught yellow cab driver from Romania recently hanged himself in his New York garage, marking the fourth suicide among city taxi drivers in as many months. In the tragedy’s aftermath, members of New York’s taxicab drivers union are renewing their calls for a cap on the number of app-based for-hire vehicles, such as Uber and Lyft, which they say are driving workers of a once-thriving industry into the ground. VOA’s Ramon Taylor reports.
…

The Trump administration is expected to announce that it will roll back automobile gas mileage and pollution standards that were a pillar in the Obama administration’s plans to combat climate change. 

It’s not clear whether the announcement will include a specific number, but current regulations from the Environmental Protection Agency require the fleet of new vehicles to get 36 miles per gallon in real-world driving by 2025. That’s about 10 mpg over the existing standard. 

Environmental groups, who predict increased greenhouse gas emissions and more gasoline consumption if the standards are relaxed, say the announcement could come Tuesday at a Virginia car dealership. EPA spokeswoman Liz Bowman said in an email Friday that the standards are still being reviewed.

Legal showdown

Any change is likely to set up a lengthy legal showdown with California, which currently has the power to set its own pollution and gas mileage standards and doesn’t want them to change. About a dozen other states follow California’s rules, and together they account for more than one-third of the vehicles sold in the US. Currently the federal and California standards are the same. 

Automakers have lobbied to revisit the requirements, saying they’ll have trouble reaching them because people are buying bigger vehicles due to low gas prices. They say the standards will cost the industry billions of dollars and raise vehicle prices due to the cost of developing technology needed to raise mileage. 

When the standards were first proposed, the government predicted that two-thirds of new vehicles sold would be cars, with the rest trucks and SUVs, said Gloria Bergquist, spokeswoman for the Alliance of Automobile Manufacturers. Now the reverse is true, she said.

Still, environmental groups say the standards save money at the pump, and the technology is available for the industry to comply. 

Health risk

They also say burning more gasoline will put people’s health at risk. 

“The American public overwhelmingly supports strong vehicle standards because they cut the cost of driving, reduce air pollution, and combat climate change,” said Luke Tonachel, director of the Natural Resources Defense Council’s Clean Vehicles and Fuels Project. 

The EPA and the National Highway Traffic Safety Administration are involved in setting the standards, which would cover the years 2022 through 2025. 

Some conservative groups are pressing EPA Administrator Scott Pruitt to revoke a waiver that allows California to set its own rules. They say California shouldn’t be allowed to set policy for the rest of the nation. Pruitt has publicly questioned the veracity of evidence complied by climate scientists, including those in his own agency, that global warming is overwhelmingly caused by man-made carbon emissions from burning fossil fuels.

If the waiver is revoked, California Attorney General Xavier Becerra says the state will resist. “What we’re doing to protect California’s environment isn’t just good for our communities — it’s good for the country,” he said in a statement. “We’re not looking to pick a fight with the Trump administration, but when they threaten our values, we’re ready.” 

Huge dilemma

Getting rid of the waiver or having two gas mileage and pollution requirements presents a huge dilemma for automakers: while they would like to avoid fines for failing to meet the standards, they also want the expense of building two versions of cars and trucks, one for the California-led states and another for the rest of the country.

Mark Reuss, a General Motors’ product development chief, said in a recent interview that he would rather have a single nationwide standard, even if it stays the same. He called two standards “just waste,” because they would require different vehicle equipment and costly additional engineering. “I want one good one,” he said. “I could focus all my engineers on one.”

Automakers agreed to the standards in 2012, but lobbied for and received a midterm review in 2018 to account for changes in market conditions. In the waning days of the Obama presidency, the EPA did the review and proclaimed that the standards have enough flexibility and the technology is available to meet them.

Changes would be years away

Janet McCabe, who was acting assistant EPA administrator under Obama when the review was done, said Friday it will take a couple years for the EPA to propose new rules, gather public comment and finalize any changes. Any rollback would likely bring legal challenges, forcing Pruitt’s EPA to defend the science behind the changes. 

“This would all take a long time,” said McCabe, now a senior fellow at the Environmental Law and Policy Center.

In the meantime, automakers have to proceed with plans for new cars and trucks under the current gas mileage requirements because it takes years to develop vehicles.
…

The U.N. Security Council on Friday blacklisted 27 ships, 21 companies and a businessman for helping North Korea circumvent sanctions, keeping the pressure on Pyongyang despite its recent diplomatic opening to talks, a diplomat said.

Acting on a request from the United States, a council committee approved the largest-ever package of sanctions designations on North Korea, the council diplomat said on condition of anonymity.

The move is part of a global crackdown on the smuggling of North Korean commodities in violation of U.N. sanctions resolutions, which were adopted in response to Pyongyang’s nuclear and ballistic missile tests.

Thirteen North Korean oil tankers and cargo vessels were banned from ports worldwide, along with 12 other ships for helping Pyongyang smuggle banned commodities or supplying oil and fuel shipments, according to a U.N. document obtained by AFP.

Two other North Korean vessels were hit with a global assets freeze but were not banned from port entry. 

Twenty-one shipping and trading firms were hit by an assets freeze. Three of them are based in Hong Kong, including Huaxin Shipping, which delivered shipments of North Korean coal to Vietnam in October.

12 North Korean firms hit

Twelve North Korean firms were blacklisted for running ships involved in illegal transfers of oil and fuel, according to the document.

Two other companies — Shanghai Dongfeng Shipping and Weihai World Shipping Freight, also based in China — were blacklisted for carrying North Korean coal on their vessels.

The remaining firms are in based Singapore, Samoa, the Marshall Islands and Panama. 

A businessman identified as Tsang Yung Yuan was hit by a global travel ban and assets freeze for organizing illegal shipments of North Korean coal with a North Korean broker in Russia.

The sanctions were approved as the United States moves to open talks with North Korea on its nuclear drive, with a possible summit meeting between President Donald Trump and Kim Jong Un to be held by the end of May.

Despite the diplomatic opening, the United States have made clear they will keep the pressure on Pyongyang to shift course by pressing on with sanctions.

Sanctions flouted

Last year, the Security Council adopted a series of resolutions to ban North Korean exports of commodities in a bid to cut off revenue to the nation’s military programs.

The measures severely restrict deliveries of oil and refined petroleum products to North Korea, but sanctions monitors have reported that Pyongyang has used vessels to dodge those restrictions.

North Korea earned $200 million last year from exports of coal, iron, steel and other banned commodities, according to a recent report.

Only eight North Korean vessels had so far been banned from ports for sanctions-busting, so the inclusion of 13 other ships Friday was expected to significantly cripple North Korea’s maritime network.

The United States had initially asked the United Nations to ban 33 ships and 27 firms over smuggling, but China put a hold on that request to review the list.

Earlier this month, the White House said Trump and Chinese leader Xi Jinping agreed in a phone conversation to keep up the sanctions pressure on North Korea until Pyongyang takes concrete steps toward denuclearization.
…

French lawyers staged a walkout Friday while Air France staff went on strike over pay, adding to a growing wave of industrial unrest that threatens to slow President Emmanuel Macron’s reform drive.

Air France canceled a quarter of the day’s flights as its pilots, stewards and ground crew press for a 6 percent pay rise.

And courts postponed hearings as hundreds of lawyers, clerks and magistrates stopped work across the country to protest judicial reforms, among a slew of changes by the ambitious 40-year-old president riling various sections of French society.

“The government’s plan at least has the benefit of being coherent — scrimping, cutting, sacrificing everything it can,” legal profession unions said in a joint statement ahead of protests Friday afternoon.

Law unions complain that the court shake-up, which aims to streamline penal and civil proceedings and digitize the court system, will result in courts that are over-centralized and “dehumanized.”

They particularly object to the scrapping of 307 district courts and their judges which they say will result in a judiciary that is “remote from the people.”

In the meantime, staff at state rail operator SNCF will begin three months of rolling strikes, two days out of every five, on Monday evening — just as many travelers are coming back from an Easter weekend away.

The next day, refuse collectors will strike demanding the creation of a national waste service, energy workers will strike urging a new national electricity and gas service, and Air France staff will walk out again.

“The cost of living goes up, but not salaries,” Francois, an Air France employee, told AFP during a demonstration at Paris’s Charles de Gaulle airport, saying a six percent raise represents “barely a baguette a day for a month.”

Various universities across the country have, meanwhile, been disrupted for weeks by protests against Macron’s decision to introduce an element of selection to the public university admissions process.

‘Growth first, raise later’

Macron has so far avoided the mass industrial action suffered by his predecessor Francois Hollande.

But discord has been growing, with an estimated 200,000 taking to the streets last week in protests and walkouts by workers across the public sector angered by his reforms, including plans to cut 120,000 jobs.

Elected last May, the centrist ex-investment banker has pledged to shake up everything from France’s courts to its education system.

At Air France, 32 percent of pilots were set to join Friday’s walkout along with 28 percent of cabin crew and 20 percent of ground staff, according to company estimates.

But while just 20 to 30 percent of long-haul flights were cut at Charles de Gaulle and Orly in Paris, at other airports such as Nice, as many as half of Air France flights were cancelled.

The French state owns 17.6 percent of the carrier as part of the Air France-KLM group, Europe’s second-biggest airline, which has been plagued by strikes and labor disputes in its French operations in recent years.

Eleven trade unions have already staged two Air France strikes on February 22 and March 23 seeking a six percent salary hike, with two more planned on April 3 and April 7.

Unions argue the airline should share the wealth with its staff after strong results last year, but management insists it cannot offer higher salaries without jeopardizing growth in an intensely competitive sector.

“To distribute wealth we have to create it first,” chief executive Franck Terner told Le Parisien newspaper.

Air France is set to bring in a 0.6 percent pay rise from April 1 and another 0.4 percent increase from October 1, along with bonuses and promotions equivalent to a 1.4 percent raise for ground staff — seen by unions as grossly inadequate.
…

Hundreds of thousands of South Sudanese remained without mobile phone service Friday, as network operator Vivacell continued a standoff with the government over a licensing dispute.

The government cut the network’s signal to its roughly 900,000 subscribers just after midnight Tuesday, alleging that Vivacell owed tens of millions of dollars in licensing fees.

The government’s information minister, Michael Makuei, told VOA earlier this week that Vivacell previously had been exempted from taxes and licensing fees. “We want them to pay a sum of up to $66 million for their license, and up to now they are dragging their feet,” he said.

The licensing fee dispute underscores the mounting financial pressures facing the government in a country ravaged by civil war since late 2013.

Ruling party holds Vivacell stake

Pagan Amum – the former secretary general of the Sudan People’s Liberation Movement (SPLM), the country’s ruling party – said Vivacell already pays for a valid license it has held for years. “There is no way Vivacell can be required to pay for another license,” he told VOA’s “South Sudan in Focus” radio program on Thursday.

Amum said that, as secretary general, he had helped negotiate the original deal with Lebanon’s Fattouch Investment Group – Vivacell’s majority owner – giving the SPLM party a minority share in the telecom firm. 

Vivacell has operated in South Sudan since 2008 under a license issued to the SPLM, Amum said. He added that, since 2012, the ruling SPLM has received $100,000 a month from Vivacell for licensing fees.

Vivacell officials went to Makuei’s office earlier this week in an attempt to negotiate, but he refused a meeting, the firm’s managing director, Jesus Antonio Ortiz Olivo, told Reuters on Wednesday. 

Makuei, in media interviews this week, has expressed a desire “to reorganize the telecommunications sector.” 

Low cellphone penetration rate

Mobile phone subscription rates have been falling in South Sudan, and telecom-sector operators “are placing themselves in survival mode and are hoping for a political settlement and a return to some degree of social stability,” the telecommunications research site BuddeComm reported in February.

BuddeCom said South Sudan has one of Africa’s lowest rates of cellphone penetration, at 21 percent, noting that recovery could bring “potentially many years of strong growth” to the sector.

South Sudan’s regulatory Communications Authority estimates the country’s entire telecom market – also served by South Africa’s MTN and Kuwait’s Zain – has fewer than 3 million subscribers, according to Reuters.

Complications for customers, clients

On Wednesday in the capital city, Juba, long lines formed at mobile phone stores where people waited to buy new subscriber identification module (SIM) cards from Vivacell competitors.

Vivacell subscriber Ever Fanusto said the sudden shutdown cut her off from friends and relatives, including those living overseas.

“I used to call my elder brother who is in America and now we have been disconnected with him,” Fanusto said. She added that it would be a challenge to retrieve her contacts’ information and load it onto a new SIM card.

In a notice published Wednesday, Vivacell informed its subscribers that the company was working with national authorities to resolve the matter and that it hoped to resume business soon in South Sudan. Otherwise, the company said it would set up “a clear mechanism” for reimbursing dealers, retailers and agents for their SIM card stocks.
…

Sampad Yadav, who sells electrical goods in a shop in the business hub of Gurugram on the outskirts of New Delhi, says Chinese goods such as LED lamps are popular with customers. “When people make a price comparison, and want to move towards the cheapest goods, those are usually Chinese products.”

As in many other countries, Chinese products such as lamps, electronics, smartphones and engineering goods from the manufacturing giant have flooded Indian markets.

However India has long fretted that areas in which it is strong such as generic drugs and Information Technology services, which make up some of its main exports to Western markets, remain shut out of China. That has made it difficult to bridge a ballooning trade deficit of about $50 billion between the two countries.

But there is optimism this could change following a meeting this week between the commerce ministers of the two countries in New Delhi.

“The Chinese side have agreed to work on the issue, prepare a road map to bring the trade to balanced level over a period of time,” Indian Commerce Minister Suresh Prabhu said after discussions with his Chinese counterpart, Zhong Shan.

Trade experts hope the growing tensions on trade issues between the United States and China will prompt Beijing to open up its markets more to Indian exports. “I think China is definitely under pressure now, looking into the kind of initiation which has happened against China,” says Ajay Sahai, who heads the Federation of Indian Exports Organization.

The meeting between the Indian and Chinese commerce ministers this week came amid efforts to deescalate tensions between the Asian neighbors following a period of rocky ties and a tense 70-day face-off between their troops in the Himalayas last year.

Despite a long-lingering boundary dispute and an often-fraught diplomatic relationship, trade ties between the Asian giants have gained significant momentum and China is now India’s largest trading partner. Bilateral trade in 2017 topped $80 billion rising by more than 20 percent over the previous yea.

But worryingly for New Delhi, the trade deficit remains high despite a marginal growth in Indian exports – they add up to about $16 billion versus Chinese imports into India of about $68 billion.

Market access a key issue

India exports mainly raw materials like iron ore, copper and cotton yarn to China. “In whatever value added exports where we are competitive, unfortunately the market is not open for us,” says Sahai.

However China has promised to give greater market access to Indian goods, particularly pharmaceuticals and agricultural goods such as rice, as well as service exports, according to the Indian commerce minister. “They have decided to work in a way that will address security issues from their side as well as introduce Indian companies to those who can buy these products in China,” says Prabhu.

New Delhi, which is trying to ramp up domestic manufacturing, is also urging China to manufacture more goods exported to India within the country.

Whether the promised actions translate into concrete outcomes remains to be seen. But exporters are hopeful. Sahai points out that China has invited Indian traders to what is being billed as the country’s first importers fair to be held in Shanghai later this year – it is being showcased as a measure to further open up China’s market.

The positive tenor of talks between the two countries comes days after U.S. President Donald Trump announced plans to impose tariffs on Chinese imports valued at $60 billion.

New Delhi could also face U.S. ire on trade issues – although its exports to the United States are comparatively small, it has a high trade deficit in its favor and Washington has often complained of protectionist barriers in India. In February, Trump called out India for imposing higher duties on Harley-Davidson motorcycles than the U.S. does on Indian motorbikes.

Amid growing fears that global trade faces uncertain times, analysts have called on countries like India to focus on increasing trade within the region.   

India and China also said they will strengthen cooperation in the World Trade Organization and other multilateral and regional frameworks to maintain their common interests.
…

A wider Sino-U.S. trade dispute would help export-reliant Vietnam compete against Chinese companies but put the country at risk of any global fallout, analysts say.

The numerous exporters in Vietnam that ship manufactured goods to the United States would save money compared with Chinese peers if not subject to American tariffs, said Dustin Daugherty, senior associate with business consultancy Dezan Shira & Associates in Ho Chi Minh City.

The U.S. government said this month it would develop a list of tariffs on up to $60 billion in Chinese imports. China has threatened to impose its own in response.

“Let’s say (the United States) went the more traditional route, tensions kept escalating and more tariffs are slapped on Chinese products,” Daugherty said. “In that case Vietnam’s export sector definitely benefits. We’re already seeing the U.S. being very warm to Vietnam and U.S. businesses keen on doing business with Vietnam.”

But Chinese firms hit by tariffs might flood Vietnam with raw materials for local manufacturing, while overall world market volatility caused by a Sino-U.S. trade dispute could hamper the country’s trade, said Carl Thayer, emeritus professor at the University of New South Wales in Australia.

​A tariff-free Vietnam scenario

Vietnamese exporters would save money compared to their Chinese peers if the U.S. government placed tariffs on Chinese firms alone without touching their cross-border supply chains, Daugherty said.

The government of U.S. President Donald Trump calls China unfair in its trade practices, the Office of the U.S. Trade Representative says on its website. China enjoys a $375 billion trade surplus with the United States.

Vietnam counts the United States as its top single-country export destination and it shipped $46.484 billion worth of goods to that market last year.

Vietnamese officials have carved out an investment environment since the 1980s that hinges on low costs for manufacturers. American-invested factories such as a Ford Motor plant and an Intel chip factory are among those active in Vietnam today.

Foreign investment contributed to exports worth $155.24 billion in 2017, financial services firm SSI Research in Hanoi says. Vietnam’s economy grew about 7 percent in the first quarter this year, it says.

Attractive investment

Vietnam would be a more attractive investment compared with China under higher U.S. tariffs, analysts say.

Some new investors might be formerly China-based firms hoping to flee the tariffs, said Song Seng Wun, an economist in the private banking unit of CIMB in Singapore.

China itself might offer Vietnam, along with other countries, preferential trade policies or infrastructure help to shore up trade ties, some believe. Stronger trade relations outside the United States would help China offset any tariff damage, Daugherty said.

This week China’s commerce minister pledged to relax trade rules affecting India.

​Specter of a broader trade war

U.S. import tariffs that hit China’s extensive cross-border supply chain would hurt Vietnam as a place that finishes Chinese goods for final export, Thayer said. It’s unclear whether Washington would tax Chinese firms alone or their wider supply networks.

Chinese firms already co-invest with Vietnamese partners, Song said, and supply chains for goods such as consumer electronics can net multiple countries, not just China.

More co-investment might follow if Vietnam can offer shelter from tariffs. But Sino-Vietnamese political tension over a maritime dispute risks giving Vietnamese firms a bad name at home if they work too extensively with Chinese partners.

“I would say there will be all kinds of repercussions and implications just because of the very integrated supply chain in the world these days,” Song said. “Take an Apple phone as an example. Parts from here and there are assembled in China.”

Steel, aluminum tariffs

U.S. steel and aluminum tariffs that took effect last week cover much of the world including China and Vietnam. Vietnam exported 380,000 tons of steel, worth $303 million, to the United States in 2017, domestic news website VnExpress International says.

Chinese firms hit by the range of tariffs being mulled now in Washington might boost sales to Vietnam, Thayer said. Chinese sellers of raw materials for Vietnamese exports could dump goods into Vietnam to keep up their own balance sheets as U.S. tariffs hurt them, he added.

Chinese sellers often have an economy of scale that lets them sell for less in Vietnam than local vendors do. Vietnam counts China as its top trading partner.

An escalation of Sino-U.S. trade tensions could also chill global markets or trade as a whole, some analysts fear. That fallout could slow global growth, he said.

“Disruption to trade shouldn’t affect Vietnam overall, but it’s the way the entire globe is reacting to this that I think could affect Vietnam,” he said. “Vietnam is overall heavily committed to global integration with a number of partners, so disruption along that way would have an effect.”
…