Did China just blink in the tariff standoff?

Did China just blink in the tariff standoff?

American protectionist rhetoric is turning into action this year, with President Donald Trump having announced the intention to impose sweeping tariffs on Chinese imports.

"The objective of this round of pressure from the U.S. was mainly to force China to make concrete commitments and measures", she said.

Automakers and technology stocks moved higher after President Xi Jinping said he would cut China's auto tariffs and improve intellectual property protection.

Last week, the Trump administration proposed 25% tariffs on US$50 billion (RM193.5 billion) worth of roughly 1,300 Chinese imports.

Chinese investment in the United States plummeted in 2017. The US has accused China of unfairly subsidizing targeted sectors and forcing foreign companies to transfer technology in areas like robotics, aerospace and artificial intelligence. For its part, Beijing quickly revealed plans to apply tariffs on 128 U.S. products (accounting for roughly $3bn in imports) and stated its intention not to back down.

Oil prices surged more than 3 percent on Tuesday as investors grew more confident the United States and China would resolve their trade dispute without damaging the global economy, while Middle East tensions and a weak dollar also supported prices. The speech was free of the nationalist bluster that increasingly marks Chinese official statements and repeatedly called for worldwide co-operation.

Indicating a possible end to the tit-for-tat tariffs the United States and China have been imposing on each other in a "trade-war" of sorts, Chinese President Xi Jinping on Tuesday announced plans to open up the Chinese economy, including reducing tariffs for autos and other products. And if we don't make the right deal, we will terminate NAFTA, and we will make the right deal after that.

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Singapore Prime Minister Lee Hsien Loong, also speaking in Boao, welcomed Xi's promises.

"This is positive, but we need to see action", Ezell said. China has already proposed new tariffs on $50 billion of USA goods and threatened to retaliate further. It said that "linking China's strategic choice to the current China-US trade frictions" was a "baseless interpretation". -China dialogues. In 2010 and 2012, for instance, China declared that foreign companies were free to decide for themselves when to share technology with Chinese partners or other businesses. For some reason, the mainstream media has taken the desire for "fair trade" to mean Trump is an isolationist and a racist.

Xi gave no details on how conditions might change, leaving unclear how he intends to mollify Washington. These cars and phones did not show up as USA exports to China, as they were made and sold in China. "China relied in the past on creating favorable policies for itself", Xi said, according to South China Morning Post.

President Trump, a day earlier, took to Twitter to complain about the auto industry tariff imbalance between the two companies, arguing America has a 2.5% levy on vehicle imports while China has a 25% one. American investment in China was basically flat at $14 billion last year from $13.8 billion the year before.

Rajiv Biswas, an economist at IHS Markit, said, "This would be a victory for the world trading system and an important step away from the abyss of rising global protectionism".

The bulk of Xi's 40-minute speech was devoted to China's vision for economic development and its global role following a ruling party congress in October that installed him for a second five-year term as leader.

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