Did Chinese President Xi Jinping just blink in trade war stand-off with US?
Or were leader’s promise of concessions in financial and automotive sectors simply part of China’s ongoing reform plan?
The latest promises made by President Xi Jinping to open up China’s economy were billed by state media as part of a long-term strategic policy, but portrayed by a senior adviser in Washington as the political equivalent of Xi having blinked in response to the rising threat of a trade war between the two countries.
The most notable pledges were the easing of foreign ownership limits in the financial and automotive industries, lower tariffs on imported cars, and improved protection for intellectual property rights.
The financial sector changes were later confirmed by Yi Gang, the newly appointed head of China’s central bank, who said foreign investors would be allowed to hold up to a 51 per cent equity stake in brokerage firms, futures companies and fund management firms.
Just hours after Xi’s speech, US President Donald Trump took to Twitter to say he was “very thankful” for the concessions made. On Monday, he had tweeted his frustration at the imbalance between US and Chinese tariffs on car imports.