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View Full Version : China's premier pledges market opening in bid to avert U.S. trade war




Swordsmyth
03-26-2018, 01:43 PM
Premier Li Keqiang said on Monday China and the United States should maintain negotiations and he reiterated pledges to ease access for American businesses, as China scrambles to avert a trade war.Li told a conference that included global chief executives that China would treat foreign and domestic firms equally, would not force foreign firms to transfer technology and would strengthen intellectual property rights, repeating promises that have failed to placate Washington.
The United States asked China in a letter last week to cut a tariff on U.S. autos, buy more U.S.-made semiconductors and give U.S. firms greater access to the Chinese financial sector, the Wall Street Journal reported on Monday, citing unidentified sources.
Alarm over a possible trade war between the world's two largest economies has chilled financial markets as investors anticipated dire consequences should trade barriers go up due to President Donald Trump's bid to cut the U.S. deficit with China.
U.S. Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer listed steps they want China to take in a letter to Liu He, a newly appointed vice premier who oversees China's economy, the Journal said, quoting sources with knowledge of the matter.
The newspaper reported that Mnuchin was considering a visit to Beijing to pursue negotiations.
Despite a steady stream of fierce rhetoric from Chinese state media lambasting the United States for being a "bully" and warning of retaliation, Chinese and U.S. officials are busy negotiating behind the scenes.
"With regard to trade imbalances, China and the United States should adopt a pragmatic and rational attitude, promote balancing through expansion of trade, and stick to negotiations to resolve differences and friction," Li told the conference in Beijing, state radio reported.
China has offered to buy more U.S. semiconductors by diverting some purchases from South Korea and Taiwan, the Financial Times reported, citing people briefed on the negotiations. China imported $2.6 billion of semiconductors from the United States last year.
Chinese officials are also working to finalise rules by May - instead of the end of June - to allow foreign financial groups to take majority stakes in Chinese securities firms, the Financial Times said.

More at: https://finance.yahoo.com/news/u-sends-china-list-cut-012637260.html

dannno
03-26-2018, 02:48 PM
reiterated pledges to ease access for American businesses

Didn't somebody say this was going to happen? Who was that again?

Brian4Liberty
03-26-2018, 02:59 PM
A trade war would hurt China more than the US, thus they will make some (fake) concessions. Unfortunately, the only thing that would work is across the board trade standards, such as China has a 5% import tariff, and so does the US. Equal and across the board for both. Zero would also be good, but hey, this is just a fantasy scenario anyway.

Instead, it will probably be small, isolated, crony concessions here and there, probably written in such language that they can be easily avoided.

What possessed so many private companies to freely give away their trade and technology secrets to China is the real question. It is not in the interest of the companies. The problem there is CEOs with agendas other than the long term health of the company.

oyarde
03-26-2018, 03:07 PM
Maybe trump can make china pay for the great wall .

Swordsmyth
04-26-2018, 03:27 PM
Two weeks after Chinese President Xi Jinping reiterated China's plan (https://www.zerohedge.com/news/2018-04-12/china-denies-trade-talk-claims-says-xis-speech-was-not-concession) to begin liberalizing its automobile market by lowering tariffs on imported cars - dealing what could be a death blow to the government's strategy of forcing foreign manufacturers to enter into profit-sharing (and intellectual property sharing) agreements with local manufacturers, just to gain entry to the mainland market - senior officials at the State Council, China's cabinet, are saying the lower tariffs could be announced as soon as next month, according to Bloomberg (https://www.bloomberg.com/hyperdrive).

More at: https://www.zerohedge.com/news/2018-04-26/china-planning-lower-auto-tariffs-soon-next-month