China pledges to expand financial market opening as U.S trade delegation arrives

The trade war between the US and China has been a major headline the past several months as the United States placed heavy tariffs on hundreds of billions of dollars’ worth of Chinese imports last year to force change within the Chinese economy. In response, Beijing retaliated with tariffs on U.S goods. Recently, China has pledged to sharply expand market access for foreign banks and securities and insurance companies, especially in its financial services sector. Chinese Premier Li Keqiang also mentioned that the Chinese governments will also work on more favorable policies for foreign investors to trade Chinese bonds. Increased access to financial services markets was one of the U.S demands for change from Beijing on trade policies. As U.S officials arrive in Beijing for trade talks, an offer from China to allow U.S cloud computing companies access to China’s fast-growing market thought special Chinese free trade zones. According to sources, the two countries have made progress in all areas under discussion. As progress is made, the U.S may drop some tariffs if a trade deal is met, however they are not going to give up any leverage. Li mentioned the possibility of fluctuations in the Chinese economy but is confident that early policy steps were gaining traction. Chinas economic growth cooled to 6.6% last year, which is the slowest pace in nearly 30 years. If a trade deal is made, it will be interesting to look at the impact is has on the global economy as well as individual sectors.

https://www.reuters.com/article/us-china-boao/china-pledges-to-expand-financial-market-opening-as-u-s-trade-delegation-arrives-idUSKCN1R9076