Xi to cut tariffs

‘New phase’ for China trade

CHINESE President Xi Jinping pledged yesterday to lower car tariffs this year and take other steps to further open the world’s No.2 economy, indirectly addressing major complaints by the US in a simmering trade row.

Promising a “new phase of opening up”, Mr Xi told an economic forum on the southern island of Hainan that Beijing “does not seek a trade surplus” and hopes to increase imports.

He said China would take measures to liberalise automotive investment, significantly reduce tariffs on cars this year and protect intellectual property — all areas that have been high on the list of demands by Washington.

“Economic globalisation is an irreversible trend of the time,” Mr Xi told the Boao Forum for Asia. “The door of China’s opening up will not close, it will only open wider and wider.”

Mr Xi pushed measures in areas that have been high on the list of US President Donald Trump’s ire at China.

“When a car is sent to the United States from China, there is a Tariff to be paid of 2½ per cent. When a car is sent to China from the United States, there is a tariff to be paid of 25 per cent,” Mr Trump tweeted on Monday.

“Does that sound like free or fair trade. No, it sounds like STUPID TRADE — going on for years!”

Mr Xi promised China would lower import tariffs, but he gave no details or a date for taking the measures.

AFP