China vows to fight trade protectionism
BEIJING (Reuters) – China opposes all forms of protectionism and will firmly safeguard the world’s multilateral trading system, its commerce minister wrote on Monday in the ruling Communist Party’s official newspaper.
China will quicken the pace of reform and implement its pledge to opening up banks, securities and insurance, besides easing foreign ownership limits on autos, ships and aircraft, the minister, Zhong Shan, wrote in the People’s Daily.
The comments reinforce President Xi Jinping’s pledge this month to open up the economy to foreign investors and competition, amid growing trade friction with the United States, with the two countries threatening tariffs on more than $100 billion of goods.
China will also step up protection of intellectual property rights and backs a free trade zone in its southern province of Hainan, Zhong added.
Meanwhile, US Treasury Secretary Steven Mnuchin said on Saturday he may travel to China, a move that could ease tensions between the world’s two largest economies, as international policymakers acknowledged Beijing needs to change its trade practices.
The United States has threatened to impose tariffs on up to $150 billion of Chinese imports to try to force changes in Beijing’s industrial policies, which Washington says are aimed at acquiring American intellectual property.
Mnuchin told reporters he was continuing to have discussions with his Chinese counterparts to try to resolve the differences over trade, but said he may go to Beijing.
“A trip is under consideration,” Mnuchin said at a news conference during the International Monetary Fund and World Bank spring meetings in Washington.
“I am not going to make any comment on timing, nor do I have anything confirmed, but a trip is under consideration.”
Mnuchin also declined to say what he wants from a trade deal with China, adding, “If we have a deal, you’ll know what it looks like when we have it.”
China has threatened retaliation against US exports if Washington pushes ahead with the tariffs. The row, which comes as the world economy records its strongest growth in years, cast a pall over the semi-annual gathering of the world’s finance officials.
IMF managing Christine Lagarde warned this week that a US-China trade war threatened to damage confidence, investment and growth. On Saturday, she told a news conference there would be no winners from such a conflict.
“It is important that as a global community we keep trade open, we ensure that we work within the multilateral system that we have to make sure if there are disputes, these disputes are resolved,” she said.
Mnuchin said he met China’s new central bank governor, Yi Gang, during the IMF and World Bank meetings and discussed the potential for China to open its markets to more foreign competition.
“I did meet with the Chinese here. The discussions were really more around the governor’s actions at the PBOC (People’s Bank of China) and certain actions they’ve announced in terms of opening some of their markets, which we very much encourage and appreciate.”
In a statement on Saturday to the International Monetary and Financial Committee, Yi said China would “vigorously” push forward the reform and opening of its financial sector, significantly relax market access restrictions, create a more attractive investment environment, strengthen the protection of intellectual properties, and actively expand imports.
On Sunday, China’s commerce ministry said it would welcome US officials to discuss trade and economic issues.