China to curb further damage from trade war prior to resumption of negotiations
CHINA is stepping up its efforts to protect its economy from the ongoing damaging trade war with the US ahead of fresh talks to resolve the dispute to be held during the second week of October
CHINA is stepping up its efforts to protect its economy from the ongoing damaging trade war with the US ahead of fresh talks to resolve the dispute to be held during the second week of October.
The People's Bank of China (PBOC) said it would step up adjustments to counter its slowing economy and to ensure there is 'adequate liquidity' for the financial sector.
In a statement on Weibo, the social network, the PBOC said China will 'continue to implement a prudent monetary policy and increase the strength of counter-cyclical measures.'
The PBOC's pledge came as Chinese vice-commerce minister Wang Shouwen said Beijing would open up more sectors of the economy to foreign investors. He also announced that Beijing would send its top negotiator, vice-premier Liu He, to lead negotiations with the US.
Recent economic data has shown that China's economy is suffering from Washington's imposition of tariffs on over half its exports to the US. Factory output growth has hit a 17-year low, and car sales have fallen in 14 of the last 15 months, according to UK's Guardian.
China's commerce minister, Zhong Shan, told a news conference in Beijing that the trade dispute is causing unprecedented challenges.
US president Donald Trump claimed that China wants to make a trade deal 'very badly' and that it could come sooner than the markets expect. But Washington is also considering new limits on US investments in China.
According to government insiders, this could include preventing Chinese companies from listing on the US stock market. Curbing the ability of US government pension funds to buy Chinese equities is also being considered, according to government insiders.
The prospect of Chinese companies being barred from US exchanges alarmed the Nasdaq, which warned that the move could hurt investors. 'One critical quality of our capital markets is that we provide non-discriminatory and fair access to all eligible companies. The statutory obligation of all US equity exchanges to do so creates a vibrant market that provides diverse investment opportunities for US investors,' it said in a statement.