China Wants More Open Markets as It Faces U.S. Tariffs – Reuters Reports
China’s Premier, Li Qiang, has urged countries to open up their markets to help the world economy, as reported by Reuters.
Speaking at a major business forum in Beijing, Li Qiang said that global instability is increasing, making it even more important for countries to allow businesses to trade freely. This statement comes at a time when China is preparing for new tariffs from the United States.
According to Reuters, Li Qiang spoke in front of foreign business leaders, including Apple CEO Tim Cook and Qualcomm CEO Cristiano Amon.
U.S. Republican Senator Steve Daines was also there. China hopes to attract more foreign investment because its economy is struggling with slow consumer spending and a real estate crisis.
However, Reuters notes that fewer American business leaders attended the forum this year due to rising tensions between China and the U.S.
In response to economic challenges, China is planning to introduce new policies to strengthen its economy, though details were not provided, Reuters reported. The government aims to push for more self-reliance in technology and reform its industries to stay competitive.
Reuters also highlighted that China recently announced an action plan to attract foreign investment by making it easier for businesses to transfer data across borders.
On the U.S. side, former President Donald Trump has announced new tariffs, set to start on April 2, on countries that place trade restrictions on American products.
China has already been hit with a 20% tariff on its exports, and it has responded by raising taxes on U.S. agricultural products, Reuters explained. A U.S. government review of China’s compliance with a previous trade agreement is expected to conclude by April 1.
Reuters further reported that Chinese officials have been meeting with leaders from international companies like Airbus, PepsiCo, and Procter & Gamble to reassure them about doing business in China.
However, data from Reuters shows that foreign investment in China has dropped sharply, reaching its lowest level since the 2008 financial crisis.
With the possibility of a bigger trade war between China and the U.S., economic experts told Reuters that China may need to introduce even stronger policies to keep its economy stable.
While China’s leaders are optimistic, the country faces serious challenges ahead as global tensions continue to rise.
Credit: Reuters