Economic policymakers of China assured during a statement this weekend that they will open the country's economy to encourage more market-based competition and international trade which shows its strong interest to end the continuing trade war with the United States.
Reports circulated that senior American officials are scheduled to visit China in the coming days for trade talks. Chinese officials will head to the United States after the visit to wrap up a deal.
The trade war between the two great nations hurt many economies and investments. Economies around the world struggled to adjust to the effects of the tariffs imposed by both sides. Investors were unsure if they will make new investments because of the uncertainty of the results of the talks between the two sides. China's statement is the recent update of the on-going negotiations which gives hope for traders.
The trade war started in July after the United States imposed tariffs on Chinese goods over claims of unfair business policies of the Asian country. The United States announced a ceasefire on tariff wars December. United States President Donald Trump said that they will cease to impose tariffs until March 1 of this year but will impose additional tariffs on Chinese goods if they are unable to agree on a deal. The deadline was, however, extended due to the efforts of both sides' negotiators.
The trade war hits both sides' exports affecting almost all sectors. These recent months, the private sectors became increasingly cautious in their investments because of the long-due trade war. Recently, the European Union also encouraged China to open its economy to other nations. The bloc demands the Asian nation to push open trading since then they are also free to trade in the European continent.
According to Han Zheng, a member of China's Politburo Standing Committee, the nation wants to increase its import since they are not striving for a trade surplus. The governor of the central bank of China, Yi Gang, said that the country wants more foreign investment and its government is looking for ways to let foreign investors trade derivatives and other financial instruments to limit their exposure to risk. Analysts believe that opening China's economy will loosen the nation's control over the value of its currency.
Han Wenxiu, the executive deputy director of the powerful, policy-setting General Office of the Central Financial and Economic Affairs Commission, said that China never pays lip service. He added that the country will honor their words and act on them.
