MNI: China Gears Up To Become "A Trade-Strong Country"

By Iris Ouyang

     BEIJING (MNI) - China would prefer not to engage in a trade war with the

U.S., but the country will still be diversifying its trading partner portfolio,

MNI learned from the press conference over the weekend held by the Ministry of

Commerce. 

     "China does not want to be involved in a trade war, nor would it start

one," China Minister of Commerce Zhong Shan said at the press event during

China's two-week parliamentary session. "But we are able to counter any

challenge to defend the interests of our country and the Chinese people."

     Stating that a trade war would be a "disaster" for both China and the U.S.,

as well as the global economy, Zhong stressed the two nations are still

negotiating on the matter. 

     Zhong pointed out that such negotiations "are not decided by a single

side," expressing similar concerns from the market - uncertainties surrounding

the Trump administration's trade policies with regard to China. 

     This has driven China to seek ways to offset risks in Sino-U.S. trade and

to enhance its trade status in the world. 

     Zhong detailed China's own step-by-step plans to become a trade-strong

country by 2050. MNI notes, accordingly, that as the world's second-largest

economy, China's trade is not tied to the U.S. Instead, it is expanding trade

with other countries, especially those aligned with the One Belt One Road (OBOR)

initiative. 

     Highlighting China's switch to high-quality growth, the minister said that

China will work to create "new trade advantages". The nation will continue to

improve the sectors that it has advantages in, and will increase the

manufacturing of high-technology and higher value-added products, Zhong noted. 

     The country will create a "wider trading partner network" as it expands its

OBOR initiative, Zhong said. 

     Domestically, China will stick to its plan to increase consumption, using

it as a "fundamental" contributor in boosting its economic growth, and as a way

to reduce trade surplus with other countries, according to MOFCOM officials. 

     Consumption will be upgraded by lower consumption costs and more supplies.

This will be achieved by lowering import tax on vehicles and some necessities,

and by opening up its service sector - including telecommunications, healthcare,

education and retirement-related services. 

     Zhong stressed China will deliver on its promise to further open up its

financial sector and improve intellectual property right protection, although he

did not detail the specific measures that would be taken. 

     The drop in China's outbound direct investment was mainly due to the

government's tighter supervision, Zhong said. China has been clamping down on

"unreasonable" outbound investment in a bid to rein in the potential risks that

such investment would bring to its domestic economy. He noted China will

continue to regulate Chinese companies' unreasonable outbound investments, and

ensure their authenticity. 

--MNI Beijing Bureau; +86 (10) 8532-5998; email: iris.ouyang@marketnews.com

--MNI Beijing Bureau; +86-10-8532-5998; email: beijing@marketnews.com

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