China says it is willing to talk to the US to boost bilateral trade via Reuters
Beijing – China is willing to conduct a dialogue with the United States based on the principles of mutual respect and promoting the development of economic and trade relations between the two countries, said the vice minister of commerce Wang Shouwen on Friday.
Wang, who is also China’s International Trade Representative, said China will be able to “resolve and withstand” the impact of external shocks, responding to a question about the impact of potential tariffs from US President-elect Donald Trump.
“We believe that China and the US can maintain a stable, healthy and sustainable development trend in economic and trade relations,” Wang said at a press conference in Beijing.
China is also willing to “expand areas of cooperation and manage tensions” with the US, Wang said.
With Trump’s threat to impose tariffs of more than 60% on all Chinese goods, which has rattled Chinese manufacturers and accelerated factory migration to Southeast Asia and other regions, Chinese traders are expecting any trade disruptions.
Economists polled by Reuters believe the United States could impose tariffs of up to 40% on Chinese imports as early as next year, which could reduce growth in the world’s second-largest economy by up to 1 percent.
Chinese authorities on Thursday announced a series of policy measures aimed at boosting foreign trade, including promising to strengthen financial support for firms and increase exports of agricultural products.
The trade turmoil of Trump’s first presidency will also have an impact on the government. The yuan rallied 10% in the first 18 months before falling nearly 12% on inflation and the pandemic.
“Our basic decision is that the yuan’s exchange rate will remain stable at a reasonable and balanced level,” said Liu Ye, head of China’s central bank at the same press conference.
The central bank will “maintain the yuan’s flexibility while tightening guidance on expectations to prevent the market from creating one-sided opinions,” he added.
The bank will also firmly protect itself from the risk of exchange rate hikes and keep the yuan stable at a reasonable and balanced level, according to Liu.
Chinese firms are shedding more dollars, contracting yuan prices and opening import lines to reduce currency risks, Reuters reported on Friday.
