Chinese Vice Premier Ding Xuexiang said China will expand its imports, hours after US President Donald Trump left the economy out of countries he’s looking to hit with tariffs imminently.
“We don’t seek trade surplus. We want to import more competitive, quality products and services to promote balanced trade,” Ding said on Tuesday at the annual World Economic Forum in Davos, Switzerland, without naming any country.
Ding’s comments came shortly after Trump avoided committing to a plan for Chinese tariffs following his inauguration on Monday. Instead, he focused on levies on Canada and Mexico, signaling plans to impose previously threatened tariffs of as much as 25% by Feb. 1.
While it’s early days, US-China relations are off to an unexpectedly warm start after Trump returned to the White House. The US president also threw TikTok a lifeline by temporarily halting a ban in the country, giving the company and its Chinese parent ByteDance Ltd. more time to find a US partner.
Trump suggested he would have meetings and calls with Chinese President Xi Jinping, saying he’d been invited to China without elaborating. The US leader signed an order for his administration to address unfair trade practices globally and investigate China’s compliance with a deal struck during his first term.
Ding, one of seven members of the Politburo Standing Committee, the Communist Party’s top leadership body led by Xi, said China has made efforts to expand imports and has an overall low level of tariffs at 7.3%. He also touted the country’s zero-tariff arrangement for least-developed economies as Beijing seeks to expand its influence in the so-called Global South.
China’s trade surplus soared to a record $992 billion last year, driven by strong exports that boosted the economy but may be threatened by tariffs. Other economies such as the European Union and Brazil have also taken steps to curb an influx of cheap Chinese products.
Ding also sought to play up China’s appeal to investors with potentially greater geopolitical tensions on the horizon. He promised to remove hurdles for enterprises and invited more foreign companies to enter the market.
“China’s door of opening up will not be closed and will open even wider, and our business environment will only get better,” he said.
China is seeking to maintain its growth momentum after data last week showed the economy met its annual expansion target but remained reliant on trade, with domestic demand staying weak despite a late-September stimulus blitz.
The agreement Beijing signed with Washington in January 2020 — billed as the first phase of a broader trade pact — outlined a $200 billion spending spree to narrow China’s trade imbalance with the US. The Asian nation likely hasn’t lived up to that commitment, partly because the pandemic shortly after upended global supply chains.
China is set to announce its growth goal for 2025 at an annual parliamentary session in March, which is likely to be similar if not identical to last year’s based on provincial goals already announced. Beijing has vowed to loosen monetary policy and expand fiscal spending, with boosting consumption given a greater emphasis this year.
Ding will also visit the Netherlands besides attending the Davos event, China’s Foreign Ministry said earlier.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
