Tit for tat as China strikes back over U.S. tariff plans

“Heaven rewards the diligent”, the Chinese president said, applauding his country’s achievements.

The United States is demanding that China rectify its trade imbalances with other countries.

Then he slipped in a Chinese proverb: “Heaven has its own law and those who embrace it will prosper”.

Trump praised Xi Jinping’s “kind words” on trade after the Chinese leader reaffirmed pledges to open his nation’s banking and manufacturing sectors-signaling an effort to defuse a burgeoning trade war.

At least twice this year, the U.S. Navy has deployed destroyers in freedom-of-navigation sail-bys near Chinese-occupied Scarborough Shoal, which Beijing wrested from the Philippines in 2012, and Manila-claimed Mischief Reef, which Chinese forces occupied in 1995. Some of the pledges will have minimal impact.

However, China was not willing to accede to a key USA demand-that it stop subsidizing the 10 high-tech industries targeted in the “Made in China 2025” program. “Going forward, we will reduce as soon as possible limits on foreign investment in these industries, automobiles in particular”, Xi said. “Xi delivered a masterful, carefully framed, conciliatory response to Trump”, Collier said. The list was authorized by the U.S. Trade Representative’s office, which in August 2017 initiated an unfounded investigation under the Section 301 of the U.S. Trade Act of 1974 to probe China’s intellectual property and technology transfer practices. “We will make great progress together!” he tweeted.

“It’s a showcase of the capability of the USA armed forces not only by sea but also by air”, Philippine army Lt. Gen. Rolando Bautista said after joining a tour of the 97,000-ton carrier. But they seem surprised and confused by Mr. Trump’s rapid-fire decisions and trade threats, most recently to impose punitive tariffs on an additional $100 billion in Chinese imports, according to many who have met with them.

Xi’s speech, which had been expected to set out bold reforms, was instead similar to his remarks in Davos previous year.

President Rodrigo Duterte is accompanied by People’s Republic of China President Xi Jinping during a dinner in Boao, China.

According to Voice of America, Xi mentioned the phrase “opening up” 42 times in his speech, with one of the key messages of his speech being China’s openness for business.

China made a similar promise to cut auto tariffs in November when Trump visited Beijing, and again at the World Economic Forum in Davos, Switzerland, in January. 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.

Xi said China would accelerate opening up its insurance industry, with Shanghai Securities News citing a government researcher after the speech saying foreign investors should be able to hold a controlling stake or even full ownership of an insurance company in the future.

Foreign ministry spokesman Geng Shuang said China had shown sincerity in wanting to resolve the dispute through negotiations. Risk sentiment returned as the USA explores the possibility of returning to trade talks with 11 Pacific countries and clarifies that it is consulting allies before making a final decision on possible military strikes against Syria.

China vows wider access to financial markets amid trade row

 

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