MNI POLICY: China MOFCOM Says Can Offset Trade War Impact

By Iris Ouyang

     BEIJING (MNI) - The Chinese government will provide support for businesses

to offset the negative impacts of the trade dispute with the U.S and boost their

long-term development, the Ministry of Commerce said.

     "We are confident of being able to defend stable development of trade," Gao

Feng, ministry spokesman, said at a weekly briefing. He did not elaborate on

specifics on the measures.

     China will further protect legal rights of companies including foreign

firms in the country and continue to seek to expand imports, Gao said, calling

talks between China and the U.S. in Washington last week "constructive."

     He said both sides should tackle trade conflicts through negotiations on an

equal and credible basis.

     "The U.S.'s approach of maintaining a so-called tough stance while imposing

pressure on China does not work and will not tackle the problems," Gao said,

adding that China was a defender of global free trade and multilateralism. The

country will also promote freer investment flows, he said.

     China's relatively complete industrial economy, supply of skilled workers

and huge market will underpin confidence and stable growth, he said. This should

also support the confidence of foreign investors in the Chinese market, he

stressed.

     Foreign investment into China continued to increase in July, according to

MOFCOM. Year-over-year growth accelerated to 19.3% from 5.8% in June, although,

in money terms, growth decreased to $7.75 billion from $15.66 billion.

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

--MNI London Bureau; +44208-865-3829; email: Jason.Webb@marketnews.com

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