(Bloomberg) -- China’s top trade negotiator sought to lower tensions with the U.S. on Monday, saying the dispute between the world’s biggest economies should be resolved through measured dialogue.
“We are willing to solve the problem through consultation and cooperation with a calm attitude,” Vice Premier Liu He said at the opening ceremony of 2019 Smart China Expo in Chongqing, Caixin reported on Monday. “We firmly oppose the escalation of the trade war,” he said, adding that it “is not conducive to China, the U.S. and the interests of people all over the world.”
China welcomes all foreign investors, including those from the U.S., Liu said, adding that policy makers will keep building a favorable environment and protecting property rights. He stressed that China has ample macro-policy tools to ensure the country’s economic fundamentals have “good momentum.”
S&P 500 futures stabilized after Liu’s comments and a stronger-than-anticipated yuan fixing suggested that traders don’t need to worry about an immediate counterpunch from China after a tumultuous weekend. China on Friday threatened to impose more tariffs on $75 billion of American goods, prompting President Donald Trump to announce even higher tariffs on Chinese goods and call for American companies to pull out of Asia’s largest economy.
Liu spoke an event focused on high-tech industries such as big data, artificial intelligence, semi-conductors and 5G. He said China opposes technology blockades and protectionism, and is trying hard to maintain the completeness of supply chains.
On Friday, Trump said existing 25% tariffs on some $250 billion in imports from China would rise to 30% come Oct. 1, the 70th anniversary of the founding of the People’s Republic of China. Planned 10% tariffs on a further $300 billion in Chinese goods will be taxed at 15% instead of 10% starting with the first tranche on Sept. 1.
China will follow through with retaliatory measures announced Friday and fight the trade war to the end, after the U.S. failed to keep its promises, the Communist Party flagship newspaper People’s Daily wrote in a Saturday editorial. Later, the Editor-in-Chief of the Global Times, Hu Xijin, said on Twitter that the U.S. is “starting to lose China.”
(Updates with more comments from Liu throughout.)
To contact Bloomberg News staff for this story: Miao Han in Beijing at mhan22@bloomberg.net
To contact the editors responsible for this story: Jeffrey Black at jblack25@bloomberg.net, Sharon Chen, Daniel Ten Kate
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