China tries to ease retaliation fears with pledges to help foreign businesses weather trade war
China will hit back with tariffs but harassing US firms not on the cards, commerce ministry signals
The Chinese government has said it will protect the “legitimate interests” of foreign businesses in China and lessen the fallout from a China-US trade war, in an apparent attempt to ease fears that Beijing could single out US businesses for retaliation.
Asked on Thursday whether China would target US-funded businesses in China to counter US restrictions on Chinese products, Chinese Ministry of Commerce spokesman Gao Feng said it was not part of Beijing’s plan and, instead, China might compensate foreign businesses for losses from a trade war.
“As for possible impacts on businesses from the trade war initiated by the United States, we will keep assessing the situation and make efforts to help [foreign] businesses to mitigate any possible impacts,” Gao said.
“In the past few decades, China has always been one of the most popular markets for foreign investors. It is not only because of China’s large market size, but it is also because the Chinese market is stable, rational, and committed to the rule of law.”
The comments come a day before Washington and Beijing plan to implement tariffs against each others’ goods in an escalating trade conflict that has rippled out to financial markets.