Trump Effect: China blinks on U.S. trade restrictions
- Author: Leroy Wright Apr 11, 2018,
Apr 11, 2018, 17:13
The Dow gained 428.90 points, or 1.8 percent, to 24,408.
President Xi Jinping said today that China will further expand its market this year by implementing policies with its own characteristics to liberate and facilitate trade and interventions in several sectors.
Beijing has previously promised to open up its huge domestic market and reform certain sectors of its economy following criticism from foreign companies operating in China with restrictions. "And as you know, I spent two days in China, the president spent two days with us at Mar-a-Lago in Florida, and they were four great days", he said.
Trump sees China's gain as America's loss. Beijing fired back with its own $50 billion list of US goods for possible retaliation. "Does that sound like free or fair trade", Trump tweeted.
Chinese investment in the USA plunged past year as tensions between the two countries mounted. The "Made in China 2025" strategy does not go against any world trade rules, and the United States is simply trying to contain China with false accusations, said Huang. Till then, the tough talk continues. "And every time the administration says "We're going to negotiate" the market goes back up".
CURRENCIES: The dollar slipped to 107.06 yen from 107.20.
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"Very thankful for President Xi of China's kind words on tarrifs [sic] and automobile barriers. also, his enlightenment on intellectual property and technology transfers", Trump said on Twitter. "And we can only achieve win-win results by insisting on peaceful development and working together".
In 2017, China's trade volume with BRI countries grew by 14.8 percent year-on-year, reaching 1.18 trillion dollars, according to latest statistics from China's Ministry of Commerce.
The speech at the Boao Forum for Asia in the southern province of Hainan had been widely anticipated as one of Xi's first major addresses in a year in which the ruling Communist Party marks the 40th anniversary of its landmark economic reforms and opening up under former leader Deng Xiaoping. "But these comments from Xi have to be viewed as constructive".
"China does not seek a trade surplus", he said.
Jinping has made similar promises before.
About 140,000 people in the USA are now employed by a firm that is majority owned by a Chinese company, many of them in sectors such as real estate, hospitality and entertainment, according to the report.
After the USA unveiled a list of $50 billion in potential tariffs on Chinese products, Beijing responded with plans to implement billions in penalties on US soybeans, cars and other items.
The decline followed a rapid increase in Chinese investment overseas over the last decade, which has fuelled worries both in China and in countries including the US, Australia and Germany.
But despite a 2012 WTO ruling that China was discriminating against foreign payment card companies, no USA firm has yet been granted a licence.
But the stakes are higher in the dispute over China's aggressive technology policies. Financial companies would also be permitted a higher ownership cap, but details will be unveiled by the end of June. "Even so, with Xi's speech positioning China as conciliatory, the chances of a damaging trade war appear a shade lower".