China said it will work on further enhancing protective measures for foreign businesses and investments. The Ministry of Commerce said on Sunday that it will also open up for sectors to improve the business environment for foreign investors.
According to China Daily, the ministry vowed to continue stabilizing foreign trade to achieve its 2019 targets. Minister of Commerce, Zhong Shan, said the ministry has already taken the necessary steps to help foreign businesses in their difficulties.
Zhong noted that this year, in particular, foreign trade faced multiple challenges. However, the ministry helped stabilize the business dealings of foreign brands. The ministry will not stop there, Zhong pledged.
He added that China will encourage businesses in different sectors to explore possibilities in emerging markets so international trade cooperation will be achieved.
Vice-Minister of Commerce, Wang Shouwen, noted that Chinese markets remain attractive to foreigners even if the trade war exists. He said China "truly supports foreign investors" as the foreign business has largely supported the country's economic drive over the past 40 years.
Wang further revealed that the government is looking to implement more policies to help improve the environment that foreign businesses and investors will appreciate. China's export and import volume reached $2.8 trillion in the first eight months of 2019.
The ministry's statements came after U.S. President Donald Trump hinted that fresh restrictions are being considered against the world's second-largest economy.
According to The Guardian, government insiders revealed that the new limits Trump is considering may include restrictions against Chinese companies listed in American stock markets.
The Nasdaq immediately reacted to the reports from government sources. The popular U.S. index noted that imposing limits on Chinese companies listed with U.S. stock markets could take a toll on investors.
Nasdaq noted in a statement that one of the main reasons why American capital markets are attractive to foreigners is due to the "non-discriminatory" feature it offers for eligible firms that apply for a listing.
Despite the news that Washington is reportedly considering stock restrictions, Beijing appears to be on the optimistic side of the dispute. The announcement of further foreign business protection has been viewed as a goodwill move by China to resolve its disputes with the U.S.
Meanwhile, some analysts suggested that Trump's threats against delisting Chinese companies may be one of his tactics to drive attention away from the Democrats' impeachment inquiry, Quartz reported.
Associate Professor of Strategy at Washington University, Minyuan Zhao, told the outlet in an email that restricting Chinese "hybrid" firms from listing with American stock markets will "not help the US."
Zhao added that putting any limits to Chinese brands will dent the trust that foreign investors and companies have put in the U.S. financial market as a whole.
