China says it is ready to ‘resist and address’ Trump’s influence on bilateral trade – Firstpost

China is ready to conduct an active dialogue with the United States based on the principles of mutual respect and promote the development of bilateral trade and economic relations, Vice Minister of Commerce Wang Shouwen said on Friday.

Wang, who is also China’s international trade envoy, said China will be able to “address and withstand” the impact of external shocks, responding to a question from US President-elect Donald Trump about the impact of potential tariffs.

“We believe that China and the United States can maintain a stable, healthy and sustainable development trend in economic and trade relations,” Wang said at a news conference in Beijing.

China is also willing to “expand areas of cooperation and overcome differences” with the United States, Wang said.

Trump’s threat to impose tariffs exceeding 60 percent on all Chinese goods has alarmed Chinese manufacturers and hastened the relocation of factories to Southeast Asia and other regions, with Chinese exporters bracing for any disruption to trade.

Economists surveyed Reuters believe the United States could impose nearly 40 percent tariffs on imports from China early next year, potentially cutting growth in the world’s second-largest economy by up to 1 percentage point.

Chinese authorities on Thursday announced a series of policies aimed at boosting foreign trade, including a pledge to strengthen financial support for businesses and expand agricultural exports.

Trade turmoil during Trump’s first presidency will also have an impact on the Chinese yuan. The yuan rose 10 percent in the first 18 months before falling about 12 percent due to tariffs and the pandemic.

“Our core judgment is that the yuan exchange rate will remain basically stable at a reasonable and balanced level,” Liu Ye, an official at China’s central bank, said at the same news conference.

The central bank will “maintain the yuan’s flexibility while strengthening expectations guidance to prevent lopsided expectations from forming in the market,” she added.

The bank will also resolutely guard against the risk of exchange rate overshoot and maintain the stability of the yuan at a reasonable and balanced level, Liu said.

Chinese firms are spending even more dollars by pricing contracts in yuan and opening import lines to mitigate currency risks, Reuters reported on Friday.

(Except for the headline, this story has not been edited by Firstpost staff.)