China will defend US companies operating in China

chiny24.com 3 months ago

Representatives of the Chinese authorities held a circular table gathering with representatives of US related companies to explain that Chinese remedies against US President's tariffs Donald Trump intended to defend the rights and interests of all companies, including American companies.

State Chinese media reported in the past week that Deputy Minister of Commerce Ling Ji told the bosses about 20 companies – including Tesla or GE HealthCare – that Trump's tariffs undermine the principles of the multilateral trading strategy and violate the interests of all another countries.

During the gathering held on Sunday 6 April, Ling said that Beijing's decision to impose additional duties on all goods from the US and to add more US companies to its export control lists and unreliable entities was intended to prompt Washington to "return to the right path" in global trade.

In an different decision by the Chinese authorities, Ling urged American managers to realize the underlying causes of the trade war, explain its effects and respond with “rational voices” to keep the stableness of global production and supply chains. The Deputy Minister has pledged that the ministry will “protect” companies financed from abroad legally and China “was, are and will be an ideal, safe and promising investment area for abroad investors”.

Deputy Minister Ling Ji besides reminded participants of the gathering that president Xi Jinping had organised in March with leading abroad corporate leaders, during which he called them to aid defend the world's economical order.

The People's Journal, the KPCH body in a comment published besides on 6 April stated that the dependence of the Chinese economy on the United States had fallen in fresh years and has continued to decline. In 2018 it was 19.2% of all Chinese exports, last year it was already 14.7%. A further decline in exports to the US due to tariffs "will not have a devastating impact on the economy as a whole", said the newspaper. On the contrary, the dependence of the USA on China is greater, through consumer products and intermediate goods. ‘It is impossible to completely interrupt [two-sided] trade’, the comment states. It adds: "U.S. customs abuse will affect China, but it will not make the sky fall".

Leszek B. Glass

Email: [email protected]

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