Amid Trump's threats, Xi pledges to slash tariffs, open China's markets

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President Jinping's statements were hailed by US President Donald Trump, who had sparked the "trade war" after levying increased tariffs on steel and aluminium from China. Beijing, the next day, said it would also place 25 per cent tariffs on $50 billion worth of United States imports, including in the aerospace sector where China has emerged as a key market for companies like Boeing.

Mr Xis' speech comes amid rising trade tensions between China and the United States following a week of escalating tariff threats sparked by US frustration with China's trade and intellectual property policies.

Based on wire headlines from Reuters, Xi made all the right noises when it came to the outlook for Chinese trade policy, helping to calm investor nerves that have been rattled over the past month as trade tensions between the United States and China increased.

The world's two largest economies have threatened each other with tens of billions of dollars' worth of tariffs in recent weeks, leading to worries that Washington and Beijing may engage in a full-scale trade war that could damage global growth and roil markets.

"China refuses to play by the rules of worldwide trade", said U.S. Sen.

"We truly despise the carrot and stick approach", Jia said in a veiled swipe at Trump's threats to cut aid or impose tariffs on Latin American nations that do not do more to further efforts to create more and combat drug trafficking. About 1,100 tonnes of USA beef has been shipped to China this year through April 5 - while another 274 tonnes were sold but yet to ship, according to the latest USDA data.

But trade penalties often spook foreign companies, making the business environment seem risky.

The US State Department also hailed Xi's remarks.

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With his promises Tuesday, Xi sought to position China as a defender of free trade and cooperation despite its being the world's most-closed major economy.

As Trump tweeted last Saturday: "The United States hasn't had a Trade Surplus with China in 40 years".

"I suspect Trump is going to go Jerry Maguire and say, 'Show me the money, ' " said Christopher Balding, associate professor of business and economics at the HSBC Business School in Shenzhen.

Levine, of BNY Mellon, said the tariffs the US and China have proposed won't stop the growth of the USA economy, but they could cause real pain for some industries and investors sold stocks in response to that. It characterized those tariffs as a penalty for Beijing's forcing American companies to hand over technology to gain entry to China's market. We'll make it up to them. "We have a genuine desire to increase imports and achieve greater balance of worldwide payments under the current account", Jinping said, as per a translation of the speech. Xi reinforced that a year ago when he spoke at Davos for the first time in a rousing defense of free trade and climate change. "We never talked about punishment", Kudlow said.

He said farmers now enrolled in subsidies based on overall revenue should be allowed to switch into programs sensitive to falling prices, the likely outcome of any trade war. If that fails, the Chinese government can ask for a ruling from a WTO panel of experts.

A Chinese government "Made in China 2025" webpage. But German luxury automakers BMW and Mercedes will. China then would certainly proceed with the matching tariffs on $50 billion that it has identified. For instance, lowering import duties on cars will benefit relatively few USA companies, most of which already produce and ship their vehicles from within China.

Information for this article was contributed by Chris Bodeen, Rod McGuirk, Nick Perry and Liu Zheng of The Associated Press.

Employees work on automobiles at a Mercedes-Benz plant in Tuscaloosa, Ala., in February 2017.