Chinese trade official Wang Shouwen stated during a beijing press conference that his country wants open dialogue with US based on mutual-respect principals. The vice-minister pointed out chinaʼs ability to handle external pressure‚ while discussing possible new trade rules
The discussion comes as economists predict US might set up to 40% tariffs on chinese products in early-2025; which could slow-down the nations growth by 1% (according to recent reuters poll). Many local manufacturers are moving operations to south-east asia because of this possibility
To support trade stability beijing announced several new measures:
- More financial backing for companies
- Wider agricultural exports
- Better trade support systems
Central bank representative Liu Ye shared thoughts about yuan exchange rates: “Our basic judgment is that the yuan exchange rate will remain basically stable at a reasonable and balanced level“ [[Central Bank Official statement]]. The bank plans to keep yuan flexible but prevent one-sided market views; while protecting against rate overshooting
Local businesses are taking steps to protect themselves from currency risks - storing more dollars setting yuan-based contracts and creating new import channels. During trumps first term yuan went up 10% in first 1.5 years then dropped 12% when tariffs hit and covid started