China offers concessions to avert trade war with US

Beijing: China has offered some concessions to avert a possible trade war with the US. The proposal includes allowing better market access for foreign investors in the China’s financial sector and lifting up the ban on US beef imports. Senior officials from both the countries ascertained this information. A ‘100-Day Plan’ has been announced to improve the trade relations between the two countries during a summit that was held last week between the US President Donald Trump and his Chinese counterpart, Xi Jinping.

China had banned US meat imports since 2003. The US has been trying to get this ban lifted since many years. Likewise, foreign investors were not allowed to purchase shares in the ‘Investment and Security’ companies in the China’s financial sector. China has indicated to offer concessions on both these issues as part of its efforts to improve its relations with the US.

The US President, Donald Trump had charged with a barrage of criticism over China’s consistent abuse in bilateral trade between the two countries in the past. Trump had threatened to slap huge tariffs on Chinese imports and declare Beijing a currency manipulator. China had reacted strongly against these threats. However, it has now come to the fore that the senior Chinese leaders, President Xi Jinping and Prime Minister Li Keqiang had evaded taking a confronting stand against US on the trade issues.

A section of China has voiced its opinion that in the wake of the downfall of the Chinese economy, it could not afford to take any more shocks. Thus, China is indicative towards a more cooperative stand with the US and the concessionary offers appear to be in line with the same. Sources have expressed the possibility of the points in the proposal being finalized, so that the trade pact between the two nations would soon be inked.

After the summit that was held last week, US Commerce Secretary Wilbur Ross expressed hope that the ongoing trade talks between the two nations would pick up its pace. President Trump had stated that very good relations had been established with the Chinese President and many of the issues between the two countries had now been resolved. However, he has also hinted that it will take some time to achieve tangible results on the trade issues.

Some analysts have stated that China’s concessionary offer is a direct result of the aggressive stance taken by Trump.