The President of China Xi- Jinping, repeated past promises to lower tariffs, increase imports and open up more sectors of China’s economy to foreign businesses in his speech at the US trade talks.
President of China, Xi Jinping, said Friday to abolish subsidies to firms that hinder fair competition. The decision came while addressing a summit on his Belt and Road project.
“We will overhaul and abolish unjustified regulations, subsidies and practices that impede fair competition and distort the market,” said the president. “We will treat all companies, enterprises and business entities equally and foster an enabling business environment based on market operation and governed by law,” he added.
Top US negotiators prepare to travel to Beijing on April 30 for a new round of talks. The negotiations would be aimed at resolving a months-long trade war. Businesses with tariffs on USD 360 billion worth of products were hit.
Xi added few more promises that included an end to “unreasonable” Chinese government subsidies to the country’s companies. However, he did not mention specifics or a timeline for implementation.
China has for long been held responsible by the US and the EU for heavily subsidising Chinese firms. The country has erected hurdles for foreign firms seeking to tap the Asian power’s vast market.
Xi also said that his country would not engage in competitive devaluation of its yuan currency. He said China would completely implement a new foreign investment law. This will be aimed at protecting the intellectual property of overseas firms.
China has long promised more extensive reforms than it has delivered, leading the European Union Chamber of Commerce in China to once coin the term “promise fatigue”.
Washington has sought to leave some charges on Chinese goods in place or find another enforcement mechanism. The president said that China attaches “great importance to implementing multilateral and bilateral economic”. Besides, he reiterated that the country finds its value to “trade agreements reached with other countries.”
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