China: a step forward or retreat before the threat of a trade...

China: a step forward or retreat before the threat of a trade war?

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Китай: шаг навстречу или отступление перед угрозой торговой войны?

The authorities reassured investors of the prospect of liberalization of business rules for foreigners

In China continues the work of the international economic forum. His first sensation was a speech by Chinese President XI Jinping, during which he stated that his government does not aim to maintain a positive trade balance, and plans to increase the national import.

According to observers, Beijing announced measures designed to ease tensions in the trade confrontation between the US and China. XI did not directly mention the American President Donald trump and a potential trade war, but promised progress in the areas that are a priority for the United States. In particular, we are talking about greater openness of the banking sector and increase the import of Beijing. XI Jinping promised to protect legitimate property rights of foreign enterprises.

Later the head of the people’s Bank of China And Gan pleased many with the promise of wider open door to foreign investment. According to him, restrictions on foreign capital for banks and companies that control financial assets, will be cancelled with equal regard to the institutions, externally funded and internationally. Foreign banks will be allowed to establish branches in the country. Foreign companies will be allowed to own up to 51% of the shares of securities, funds, futures and joint ventures in life insurance. From companies operating with securities, will no longer be required to have among their shareholders certainly was the representative of China.

Opening doors to investment, Beijing, however, intends to focus on the prevention of financial risk and coordination of financial control with the degree of openness. The word “openness” has become one of the most used in the speeches of the representatives of Beijing forum and this signal analysts have apprehended with optimism.