MNI POLICY: China Says in Talk With US Removing Tariffs

     BEIJING (MNI) - Chinese and U.S. officials are working to remove billions

of dollars of punitive tariffs imposed on each other during the trade spat, the

Ministry of Commerce said. Here are the key takeaways from the briefing by top

commerce official including Minister Zhong Shan and Vice Minister Wang Shouwen:

     - Both sides continue to make best efforts in communication and

negotiations. The two sides will cancel all the extra tariffs imposed on each

other to bring trade to normal. Teams of negotiators are "working round the

clock" to discuss specific text of a deal. 

     - A new law on foreign investment will strengthen the protection for

investors. The law ensures foreign companies equal treatment, and only

investment in industries on a so-called negative list needs official approval.

Local governments cannot interfere with business activities of foreign

investors.

     - China aims to increase domestic consumption and comprehensive openness of

the economy. Slowing retail sales growth last year is not a great concern given

faster growth of service and higher-value products. 

     - The government will work to improve lending and cut burden for companies

to stabilize trade while protecting private companies.

     - Measures to reform the World Trade Organization should not overturn the

entire system and be mindful of rights of developing countries. 

     -China hopes to seal the Regional Comprehensive Economic Partnership

negotiations this year. China is accelerating talks with Japan and South Korea

on a trilateral trade pact, with three high-level meetings scheduled this year.

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

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

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