China’s Stance on US-China Trade Relations
China is willing to engage in active dialogue with the US based on the principles of mutual respect and promote the development of bilateral economic and trade relations, according to Vice Commerce Minister Wang Shouwen.
Maintaining a Stable and Healthy Development Trend
Wang expressed optimism that China and the US can maintain a stable, healthy, and sustainable development trend in economic and trade relations. He believes that China is capable of "resolve and resist" the impact of external shocks, including potential tariffs imposed by the US.
Expanding Cooperation and Managing Differences
China is also willing to "expand areas of cooperation and manage differences" with the US, Wang said. This comes as the US has threatened to impose tariffs in excess of 60% on all Chinese goods, which has rattled Chinese manufacturers and accelerated factory relocation to Southeast Asia and other regions.
Economic Impacts
Economists polled by Reuters believe the US could impose nearly 40% tariffs on imports from China early next year, potentially slicing growth in the world’s second-biggest economy by up to one percentage point.
Chinese Authorities’ Response
Chinese authorities on Thursday announced a series of policy measures aimed at boosting foreign trade, including pledging to strengthen financing support to firms and expand exports of agricultural products. The trade turmoil of US President-elect Donald Trump’s first presidency will also bring impacts on the Chinese yuan.
Yuan Stability
"Our basic judgment is that the yuan exchange rate will remain basically stable at a reasonable and balanced level," said Liu Ye, an official from China’s central bank. The central bank will "maintain the flexibility of yuan while strengthening guidance on expectations to prevent the market from forming one-sided views expectations."
Currency Risks
Chinese firms are taking steps to mitigate currency risks, including squirreling away even more dollars, pricing contracts in yuan, and opening import lines. According to Reuters, these measures are aimed at reducing exposure to potential exchange rate fluctuations.
Conclusion
China’s stance on US-China trade relations is one of cautious optimism, with a focus on maintaining a stable and healthy development trend. While the US has threatened to impose tariffs on Chinese goods, China is willing to engage in dialogue and cooperation to manage differences and expand areas of cooperation.
FAQs
Q: What is China’s stance on US-China trade relations?
A: China is willing to engage in active dialogue with the US based on the principles of mutual respect and promote the development of bilateral economic and trade relations.
Q: How does China plan to respond to potential tariffs imposed by the US?
A: China is capable of "resolve and resist" the impact of external shocks, including potential tariffs imposed by the US.
Q: What measures has China taken to mitigate currency risks?
A: Chinese firms are taking steps to mitigate currency risks, including squirreling away even more dollars, pricing contracts in yuan, and opening import lines.