China's Vice Minister of Commerce , Wang Shouen, said that China is willing to conduct an active and stable dialogue with the United States based on the principles of mutual respect. Van stressed that his country is prepared to promote bilateral economic and trade development, regardless of external economic shocks, News.bg reports.
„China and the United States can maintain a stable, healthy and sustainable development trend in economic and trade relations,” Van Schouen stated, adding, that China will continue to “expand areas of cooperation and manage differences” with the US.
A response to Trump's trade threats
These comments were made in the context of threats by US President-elect Donald Trump to impose tariffs of 60% on all Chinese goods. The measures, if implemented, would have a serious impact on the Chinese economy and accelerate the relocation of Chinese factories to Southeast Asia.
Economists predict such a tax could reduce growth in the world's second-largest economy by up to 1% next year.
China's measures to stimulate foreign trade
In response to global trade turmoil, Chinese authorities have announced a series of policy measures to boost foreign trade. These include increased financial support for companies and expanding the export of agricultural products.
Ryan exchange rate forecasts
Trade disputes and economic measures under the Trump administration will have an impact on the Chinese yuan. In the first 18 months of Trump's tenure, China's currency rose 10%, but has since fallen about 12% as a result of trade tariffs and the global pandemic.
„The exchange rate of the yuan will remain stable at a reasonable and balanced level,” said Liu Ye, a representative of China's central bank, stressing, that the bank will “maintain yuan flexibility” and will prevent the formation of one-sided expectations in the market.
Chinese companies are adapting to the new conditions
To mitigate currency risks, Chinese companies are starting to price contracts in yuan and opening new import lines, reducing their dependence on the dollar.
Trade relations between China and the US remain tense, but China continues to strive for stability and a balanced approach, which is key to the country's future economic development.