MNI POLICY: China Will Help Companies Affected by Trade War

     BEIJING (MNI) - China's Ministry of Commerce on Thursday said the impact on

companies of U.S. tariff action has been limited and that the government will

take measures to help those affected.

     Here are main points from the weekly press briefing:

     --The impact of the China-U.S. trade war on Chinese companies has been

limited and risks are controllable, the ministry said. While "some companies are

facing risks such as stopping production, changing production category or job

losses," the majority of firms are confident of tackling the challenges,

ministry spokesman Gao Feng said. Governments at all levels will continue to

help companies and workers to deal with possible difficulties.

     --"China's stance in negotiating with the U.S. regarding economy and trade

is consistent," Gao stressed. "If the U.S. displays sincerity, our negotiations

should be conducted on an equal, credible, and mutually respectful basis." Gao

expressed the hope that China and the U.S. will "push aside the clouds and

mists" and forge closer cooperation.

     --"China's negotiations to advance bilateral and regional free-trade

agreements are a strategic choice based on its own development, not an expedient

to meet challenges in the current climate," Gao said in response to a question

on negotiations for a Regional Comprehensive Economic Partnership - a free-trade

agreement with another nine southeast Asian countries. Gao said negotiators hope

for solid achievements by the end of this year.

     -- Commenting on the U.S. move to more aggressively police foreign

investments via the Foreign Investment Risk Review Management Act earlier this

month, Gao cautioned against rules which cause uncertainties for foreign

investors and the use of national security excuses. "Development of any country

and any field is achieved through open cooperation, closing (a country's door)

will certainly lead to getting behind," Gao said.

--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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