China Defuses Trade War
Boom, go the markets again (talking daily here).
This morning, Chinese President Xi Jinping (without mentioning Trump) promised that he will cut auto tariffs and will work to improve intellectual property protection with the U.S.
Speaking at a business conference, Xi made no direct mention of his American counterpart, Donald Trump, or the dispute. He promised progress on areas that are U.S. priorities including opening China's banking industry and boosting imports but didn't address key irritants for Washington such as a requirement for foreign companies to work through joint ventures that require them to give technology to potential local competitors.
Private sector analysts saw Xi's speech as an overture to help end the biggest trade dispute since World War II. It has fueled fears of a global economic chill if other nations respond with their own import barriers.
"China's door of opening up will not be closed and will only open wider," said Xi at the Boao Forum for Asia on the southern island of Hainan.
Xi said Beijing will "significantly lower" tariffs on auto imports this year and ease restrictions on foreign ownership in the auto industry "as soon as possible."
I'm glad things were able to be resolved so quickly. I'm very curious to see what Xi really does, he's been back and forth about being a true, diplomatic president. Do you guys think this will result in back and forth tensions over the next two years, or will the doors "truly open?"