China is interested in developing economic and trade relations with the United States in addition to conducting an active dialogue based on mutual respect. This comment was made by the country's Vice Minister of Commerce, Wang Shuwen, on Friday (November 22). British news agency Reuters reported this.
At a press conference in Beijing, Wang said China has the ability to handle and resist pressure from the outside world. However, they believe that China and the United States can maintain a stable, friendly and sustainable economic and trade relationship.
He said these things in response to a question about the impact of the newly elected US President Donald Trump's possible tariff policy.
He also said that China is ready to expand cooperation with the United States and resolve differences.
Trump has threatened to impose tariffs of more than 60 percent on Chinese goods. Chinese producers have already fallen into some trouble. Many have moved factories to Southeast Asia and other regions.
Economists in a Reuters poll said that the US administration may impose tariffs of about 40 percent on Chinese goods next year. As a result, growth in the world's second-largest economy could slow to 1 percent.
On Thursday, Chinese authorities announced a policy to boost foreign trade. It promises to strengthen financial support for institutions and increase exports of agricultural products.
The impact of various actions of the previous term of the Trump administration still remains. The yuan appreciated by 10 percent 18 months into the service, but due to the imposition of tariffs and the pandemic, it fell by about 12 percent.
Liu Ye, an official at China's central bank, said, “Our preliminary observations suggest that the yuan's exchange rate will remain stable at a reasonable and balanced level.”
He also said that the central bank will work to maintain the value of the yuan and prevent the formation of one-sidedness in the market.
In addition, the central bank is determined to prevent excessive fluctuations in the exchange rate and keep it balanced.
Meanwhile, Chinese companies are focusing more on saving dollars. A number of initiatives could help counter currency risks, Reuters reported.
