China's Xi promises to lower tariffs this year, open economy further

[webfact]

China's Xi promises to lower tariffs this year, open economy further

By Kevin Yao

 

Chinese President Xi Jinping speaks at the closing session of the National People's Congress (NPC) at the Great Hall of the People in Beijing, China March 20, 2018. REUTERS/Damir Sagolj

 

BOAO, China (Reuters) - Chinese President Xi Jinping on Tuesday promised to open the country's economy further and lower import tariffs on products including cars, in a speech that comes amid rising trade tensions between China and the United States.

 

Xi also said China would raise the foreign ownership limit in the automobile sector "as soon as possible" and push previously announced measures to open the financial sector.

 

"This year, we will considerably reduce auto import tariffs, and at the same time reduce import tariffs on some other products," Xi said at the Chinese Boao Forum for Asia in Hainan province.

 

The comments sent U.S. stock futures, the dollar and Asian shares higher.

 

They come amid rising trade tensions between China and the United States following a week of escalating tariff threats sparked by U.S. frustration with China's trade and intellectual property policies.

 

Xi said that China will take measures to sharply widen market access for foreign investors.

 

China will also speed up opening of its insurance sector to foreign investors, Xi said.

 

(Reporting by Kevin Yao; additional reporting by Michael Martina; writing by Elias Glenn; Editing by Robert Birsel and Sam Holmes)

 

-- © Copyright Reuters 2018-04-10

[Katipo]

It would seem Trump took the correct stance then. 

[mogandave]

I think it fair to say that this comes in spite of tRump’s idiocy.


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[jonstarjon]

Why would China want to lock the gates to the Great Eastern smash and grab on western technology and science base? We make all the mistakes and miscalculations and China gets a guaranteed product to sell for profit without risk exploitation back into our own  markets!! I wouldn't be saying no to this. BTW.. if you think Trump is right... Then you also think he's never had a prostitute. Some people really need to think before finishing their sentences..

[rocketman777]

A 'FREE'  trade policy means  "FREE"  of all trade restrictions and tariffs for all parties involved in the trading.

As Trump pointed out that there has been a gross in balance of trade between the US and China amounting to 500 - 800 billion dollars per year for several years. There has also been an in balance of  tariffs and restrictions levied  on US imports to China . This needed to be addressed. International trade needs to be based on a even playing field.

Of course the US/China trade is complex with  a very large proportion of US manufacturing companies moving their manufacturing base to China  to take into account the cheap labor costs.

The fact the most of these goods are then shipped back to the US  is extremely wasteful  and environmentally    destructive. The social impact to the US labor force has also been extremely destructive.

 

While no big fan of Trump , in this case there does seem to be some clarity in his thinking.

 

As to "Then you also think he's never had a prostitute "  totally irrelevant and unnecessary !!!!

 

Need to take your own advice!!

[RobFord]

2 hours ago, Katipo said:

It would seem Trump took the correct stance then. 

 

I like his aim. Nice one.

 

 

[car720]

2 hours ago, Katipo said:

It would seem Trump took the correct stance then. 

No, Xi is seen as gaining much more face by going this way.  He shows himself as a benevolent leader rather than an aggressive one.  He stands to gain much more by turning the other cheek and he knows it.  This guy is no fool.  Don't underestimate him.

[car720]

1 hour ago, rocketman777 said:

A 'FREE'  trade policy means  "FREE"  of all trade restrictions and tariffs for all parties involved in the trading.

As Trump pointed out that there has been a gross in balance of trade between the US and China amounting to 500 - 800 billion dollars per year for several years. There has also been an in balance of  tariffs and restrictions levied  on US imports to China . This needed to be addressed. International trade needs to be based on a even playing field.

Of course the US/China trade is complex with  a very large proportion of US manufacturing companies moving their manufacturing base to China  to take into account the cheap labor costs.

The fact the most of these goods are then shipped back to the US  is extremely wasteful  and environmentally    destructive. The social impact to the US labor force has also been extremely destructive.

 

While no big fan of Trump , in this case there does seem to be some clarity in his thinking.

 

As to "Then you also think he's never had a prostitute "  totally irrelevant and unnecessary !!!!

 

Need to take your own advice!!

You have almost cracked it.

So many people forget that China rarely manufactures and then sells.  They take orders and then make.  Most of what comes out of China is manufactured on behalf of foreign buyers.

[hugocnx]

4 hours ago, RobFord said:

 

I like his aim. Nice one.

 

 

Another Trump basher as if we don't have enough of those on TV.

[bristolboy]

4 hours ago, car720 said:

You have almost cracked it.

So many people forget that China rarely manufactures and then sells.  They take orders and then make.  Most of what comes out of China is manufactured on behalf of foreign buyers.

19% of China's GDP is from exports.

[Ulic]

7 hours ago, car720 said:

No, Xi is seen as gaining much more face by going this way.  He shows himself as a benevolent leader rather than an aggressive one.  He stands to gain much more by turning the other cheek and he knows it.  This guy is no fool.  Don't underestimate him.

You are correct but what is forgotten is China committed to this before. Opening up the Chinese

market to US business etc...etc... They like North Korea just never live up to commitments. Look

at the promises made to the UK and Hong Kong etc... The devil is in the details with China. Lots

of promises, short on delivery. China plays the long game. The west plays election cycles. The US

4 year and at the outside 8 year, which is really 4 year. Election and re-election.

[car720]

12 hours ago, bristolboy said:

19% of China's GDP is from exports.

Precisely.

[Katipo]

16 hours ago, car720 said:

No, Xi is seen as gaining much more face by going this way.  He shows himself as a benevolent leader rather than an aggressive one.  He stands to gain much more by turning the other cheek and he knows it.  This guy is no fool.  Don't underestimate him.

I am not so sure. In this case he seems to be reacting to actions Trump took. Backing down even. By opening up the Chinese market, he is giving Trump what he wants, and you can be sure he'll be Twittering about it into the next century should it actually come to pass.

I am no Trump fan, but I am not so blinded by my dislike of him that I can't see when he potentially achieves something.

Anyway, let's wait and see whether China follows through with meaning tariff reductions, or it's just a game of cat and mouse.

[mogandave]

“I am no Trump fan...” = I’m a Trump supporter but I think lying about it gives me credibility with rational people.


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[bristolboy]

On 4/10/2018 at 8:18 PM, bristolboy said:

19% of China's GDP is from exports.

 

On 4/11/2018 at 8:35 AM, car720 said:

Precisely.

It used to be 35%. It's rapidly declining as the Chinese economy develops.

[BuriramSam]

Looks like Xi found a way to blink and save face. Tough break for TDS sufferers. But don't worry, there is still plenty to criticize. I heard he got two shops of ice cream at some dinner.

[car720]

17 hours ago, bristolboy said:

 

It used to be 35%. It's rapidly declining as the Chinese economy develops.

Exactly.  I just made a comment in another post about this.

[simple1]

A reality check, along with facts, seems Trump doesn't understand US auto industry trade with China.

 

http://money.cnn.com/2018/04/10/news/economy/china-cars-tariffs/index.html

 

 

[BuriramSam]

5 minutes ago, simple1 said:

A reality check, along with facts, seems Trump doesn't understand US auto industry trade with China.

 

http://money.cnn.com/2018/04/10/news/economy/china-cars-tariffs/index.html

 

 

So it's bad for two countries to have equally reciprocal tariffs on identical products? What reason is there to not have equal tariffs? I say this as someone who doesn't believe in tariffs not Trump's calls for new ones. Tariffs don't work. Historical fact.

[bristolboy]

1 minute ago, BuriramSam said:

So it's bad for two countries to have equally reciprocal tariffs on identical products? What reason is there to not have equal tariffs? I say this as someone who doesn't believe in tariffs not Trump's calls for new ones. Tariffs don't work. Historical fact.

You might want to look up mercantilism and reconsider your claim. Tariffs can be very favorable for the country imposing them.

[BuriramSam]

1 minute ago, bristolboy said:

You might want to look up mercantilism and reconsider your claim. Tariffs can be very favorable for the country imposing them.

 

You are welcome to support Trump's tariffs. I oppose them. I have read quite enough to stand firm on my position. 

[simple1]

4 minutes ago, BuriramSam said:

So it's bad for two countries to have equally reciprocal tariffs on identical products? What reason is there to not have equal tariffs? I say this as someone who doesn't believe in tariffs not Trump's calls for new ones. Tariffs don't work. Historical fact.

The point is US and China do not have reciprocal tariffs on cars. Yet US still exported far more cars to China than the Chinese to the US - makes a lie of Trump's claims. Also Trump ignores the fact of the massive production and sales by US auto firms within PRC

[bristolboy]

2 minutes ago, BuriramSam said:

 

You are welcome to support Trump's tariffs. I oppose them. I have read quite enough to stand firm on my position. 

Where did I say that I support Trump's tariffs. You made the statement that "Tariffs don't work. Historical fact." Clearly, they have worked very well for China. Mercantilism can be very effective.

[BuriramSam]

2 minutes ago, simple1 said:

The point is US and China do not have reciprocal tariffs on cars. Yet US still exported far more cars to China than the Chinese to the US - makes a lie of Trump's claims. Also Trump ignores the fact of the massive production and sales by US auto firms within PRC

Yes, I was addressing the point. Thank you for noticing. So... Would US companies sell more or less autos if the tariffs China imposes were cut tenfold to match the tariffs the US imposes?

[simple1]

9 minutes ago, BuriramSam said:

Yes, I was addressing the point. Thank you for noticing. So... Would US companies sell more or less autos if the tariffs China imposes were cut tenfold to match the tariffs the US imposes?

Given the vast majority of US brand cars sold are manufactured in China, in the big picture, doubt would make much difference to balance of trade. Don't know if they would be allowed to do so, but interesting if the Chinese brand manufacturers launched a nationalistic "Buy Chinese" brands campaign to counter local US brand car sales

Edited April 13, 2018 by simple1

[BuriramSam]

16 minutes ago, simple1 said:

Given the vast majority of US brand cars sold are manufactured in China, in the big picture, doubt would make much difference. Don't know if they would be allowed to do so, but interesting if the Chinese brand manufacturers launched a nationalistic "Buy Chinese" brands campaign to counter local US brand car sales

Gee I wonder if the tariffs have anything to do with US companies seeing up shop there. 

 

That said, your tidbit on "buy Chinese" is in fact quite interesting.

[lannarebirth]

54 minutes ago, simple1 said:

The point is US and China do not have reciprocal tariffs on cars. Yet US still exported far more cars to China than the Chinese to the US - makes a lie of Trump's claims. Also Trump ignores the fact of the massive production and sales by US auto firms within PRC

Has a Chinese car ever passed the safety tests required for licensing cars sold in the US? 

 

edit:  I guess they make one for Buick in China. Never heard of it.

 

https://www.usatoday.com/story/money/cars/2018/01/15/gac-motor-detroit-auto-show/1034111001/

Edited April 13, 2018 by lannarebirth

[cantata]

1 hour ago, lannarebirth said:

Has a Chinese car ever passed the safety tests required for licensing cars sold in the US? 

 

edit:  I guess they make one for Buick in China. Never heard of it.

 

https://www.usatoday.com/story/money/cars/2018/01/15/gac-motor-detroit-auto-show/1034111001/

Which Cars Are Made in China and Sold in the U.S.?

 

https://cars.usnews.com/cars-trucks/cars-made-in-china

[simple1]

1 hour ago, lannarebirth said:

Has a Chinese car ever passed the safety tests required for licensing cars sold in the US? 

 

edit:  I guess they make one for Buick in China. Never heard of it.

 

https://www.usatoday.com/story/money/cars/2018/01/15/gac-motor-detroit-auto-show/1034111001/

The United States imported $1.6 billion in new and used cars made in China last year, roughly six times less than US auto industry exports to China, according to the Census Bureau.

[lannarebirth]

1 minute ago, simple1 said:

The United States imported $1.6 billion in new and used cars made in China last year, roughly six times less than US auto industry exports to China, according to the Census Bureau.

I'm assuming those are made in primarily American Manufacturer owned factories? I've never seen a car from a Chinese manufacturer on the road in America.