Vice Minister of Commerce Wang Shouwen said on Friday that China is willing to actively dialogue with the United States on the basis of the principle of mutual respect to promote the development of bilateral economic and trade relations.
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Vice Minister of Commerce Wang Shouwen said on Friday that China is willing to actively dialogue with the United States on the basis of the principle of mutual respect to promote the development of bilateral economic and trade relations.
Wang Yi, who also serves as China’s international trade representative, said in response to a question about the impact of potential tariffs by U.S. President-elect Trump that China would be able to “buffer and withstand” the impact of external shocks.
“We believe that China-US economic and trade relations can maintain stable, healthy and sustainable development,” Wang Yi said at a press conference in Beijing.
Wang said China was also willing to “expand areas of cooperation and manage differences” with the United States.
Trump’s threat to impose tariffs of more than 60% on all Chinese goods has rattled Chinese manufacturers and accelerated the relocation of factories to Southeast Asia and other regions, with Chinese exporters bracing for any trade disruptions.
Economists polled by Reuters believe that the United States may impose nearly 40% tariffs on Chinese imports early next year, which may reduce the growth of the world’s second-largest economy by up to 1 percentage point.
Chinese authorities on Thursday announced a series of policy measures aimed at boosting foreign trade, including a pledge to strengthen financing support for companies and expand agricultural exports.
The trade turmoil of President Trump’s first term will also have an impact on the yuan. The yuan rose 10% in the first 18 months, then fell about 12% due to his tariffs and the coronavirus pandemic.
“Our basic judgment is that the RMB exchange rate will remain basically stable at a reasonable and balanced level.” Liu Ye, an official from the People’s Bank of China, said at the same press conference.
She added that the central bank will “maintain the flexibility of the RMB exchange rate while strengthening guidance on expectations to prevent the market from forming one-sided expectations.”
The central bank will also resolutely guard against the risk of exchange rate overshooting and maintain the stability of the yuan exchange rate at a reasonable and balanced level, Liu said.
Chinese companies are hoarding more U.S. dollars, pricing contracts in yuan and opening up import quotas to mitigate currency risks, Reuters reported on Friday.
