China says Xi pledges unrelated to trade spat

CC BY-SA 2.0

CC BY-SA 2.0

Liu said President Xi Jinping was ready to fight back hard if USA counterpart Donald Trump wanted a trade war, said the person, who asked for anonymity to speak about confidential discussions.

In his keynote address at the Boao Forum for Asia yesterday, Xi pledged to lower auto import tariffs, protect the intellectual property of foreign companies and further open the world's second largest economy.

Xi's speech buoyed world markets, with Asian stocks closing higher and European shares up at the opening after being hammered by the trade row in recent weeks. China's central bank unveiled landmark policies to attract foreign investment in the financial market. The White House had no comment on specifics of the discussions, but an administration official said China should change its behavior and take action to change the trajectory of its trading relationship with the U.S. The total sales of US firms in China was $372 billion in 2015, including $223 billon by their subsidiaries in China and $150 billion through exports from the U.S.to China.

Another announcement by Xi Jinping on easing restrictions on ownership will push foreign companies to increase their stakes in joint ventures. After a war of words between the USA and China spooked investors around the world, Xi Jinping indirectly offered two concessions to United States trade concerns while speaking at a business conference. USA officials have long accused China of forcing United States companies to hand over technology, or stealing it outright, and of spurring massive industrial overcapacity, among other complaints.

The move prompted Trump last week to threaten tariffs on an additional $100 billion in Chinese goods, which have yet to be identified. "When a vehicle is sent to China from the United States, there is a Tariff to be paid of 25%".

While the current dispute has focused on trade, many other factors are in play, bringing out the bargaining qualities and transactional natures of the two leaders and their administrations.

China was unhappy that the Trump administration's National Security Strategy identified China as a country trying to subvert US interests. Till then, the tough talk continues. Whenever there is more conciliatory talk about negotiating an agreement, markets rise. "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.

"It is not a matter of whether China is willing to participate in the negotiations".

"I hope some people in the U.S do not misjudge the situation", he said.

Look no further than U.S. President Donald Trump's threat to impose trade tariffs on Chinese imports.

"Stronger IPR protection is the requirement of foreign enterprises, and even more so of Chinese enterprises", Xi said.

Labor Secretary Silvestre Bello III (left) and Chinese Ambassador to the Philippines Zhao Jianhua sign a Memorandum of Understanding on the Employment of Filipino Teachers of English Language in China.

"China is laying a preliminary foundation to talk with the U.S.", said Pang Zhongying, a Beijing-based worldwide relations expert.

Chinese investment in the United States plummeted in 2017.

On Thursday China's government denied that Xi was trying to resolve the dispute and said negotiations with the USA aren't possible right now.

LEADERS: Technology and industrial companies have made some of the biggest swings on the market during the trade spat.

Trump's latest proposal intensified what was already shaping up to be the biggest trade battle in more than a half century. But part of the challenge comes down to trade policy - specifically, how to stop China's trade cheating.

"We don't need another subsidy program, we need to sell our product", said Sen.

"This makes it hard to ramp down in this one-on-one tariff death match", although both have the capacity via Twitter or state media to trumpet their success and ignore any failings once the dispute has concluded, Economy said. Politicians in democracies need growth and prosperity to be re-elected.

Stocks in Moscow calculated in USA dollars fell as much as 4.8 percent after dropping more than 11 percent on Monday, but shaved most of Tuesday's loss to end down 0.4 percent.

Benchmark 10-year notes last fell 4/32 in price to yield 2.7991 percent, from 2.786 percent late on Monday.

China is filing a complaint with the World Trade Organization against USA tariffs on steel, aluminum products. If that fails, China can ask for a ruling from a WTO panel.

A majority of American voters believe a trade war with China would be bad for the US economy, a new Quinnipiac University National poll reveals. But German luxury automakers BMW and Mercedes will.

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