MNI: Need Sincerity In Talks To Tackle Trade War; China MOFCOM

By Iris Ouyang

     BEIJING (MNI) - Negotiating in a mutually respectful way, with sincerity

and on an equal basis is the best way to tackle the spiralling trade war between

China and the U.S., China's Ministry of Commerce on Thursday.

     Here are major points MNI highlights from the weekly press briefing:

     --MOFCOM urged the U.S. administration to "return to a track of win-win

cooperation, " language similar to the rhetoric used over recent months. 

     --"China's economy's status and trend to a stable and positive growth has

not changed and it's heading to a high-quality growth," Gao Feng, ministry

spokesman said, "We hope the U.S. do not misjudge the situation, the U.S. should

stop its practices of unilateralism and protectionism."

     --In response to a question regarding U.S. officials arguing that China

interfered in U.S. elections and encouraged American businesses to object to the

administration's trade action, Gao stressed China does not intend to intervene

in the U.S. domestic affairs. He said some American companies haven't spoken out

against the U.S. trade action as they fear reprisals by the U.S. government, he

added, "I don't know whether the U.S. government has taken some threatening

action (on these companies)."

     --China will focus on its own economic development as the international

environment is changing, with the U.S. reaching trade deals with Mexico, Canada

and possibly a deal with South Korea, Gao said. China will continue to advance

supply-side reform and optimize economic restructuring, moving China's economy

on to a high-quality growth path, Gao stressed.

     --The U.S. requiring its trading partners such as Mexico and Canada not to

sign trade agreements with so-called "non-market economies" is placing its own

domestic law above international law, and forcing its will on other countries,

the MOFCOM said. Any country should attract trading partners with its own market

potential and favourable policies instead of restricting trading partners'

economic cooperation with other countries, Gao stressed.

     --Gao refuted recent U.S. arguments that China's rapid economic growth was

on the back of cheap U.S. money and dependent on the U.S. investment. Gao said

U.S. investment into China comprised 4.96% of China's total FDI since 1987.

While China recognizes the U.S. investment contribution into its economy,

economic development was mainly from opening up and reform of the economy, along

with the hard work of the Chinese people.

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

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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