Xi promises gradual opening of Chinese markets to investment

President Xi Jinping promised more grual market-opening steps at start of an import fair Tuesday but initiatives in techlogy and or irritants that sparked a tariff war with Washington.

second China International Import Expo showcases country’s vast import market of 1.4 billion people to help deflect complaints that it improperly subsidizes industries and shields m from competition. It offers a marketing platform for foreign suppliers of goods from wine to yachts but does less for companies that alrey are established in China.

“ door that China is opening will only open furr and wider,” Xi said in a speech to an audience that included French President Emmanuel Macron and prime ministers of Greece, Jamaica and Serbia.

Xi affirmed promises to reduce restrictions on foreign investment and an offer, first me in June, to accelerate work on a China-Europe investment treaty.

Beijing has anunced a flurry of changes over past two years to make its slowing, state-dominated ecomy more productive. y include cutting import tariffs and abolishing limits on foreign ownership in auto manufacturing, finance and or fields.

ne of changes dresses U.S., European and or complaints about techlogy policies and or irritants that prompted President Donald Trump to hike tariffs on Chinese imports, setting off a tre war that threatens to chill global growth.

Xi me mention of battle with Washington but called for building and “open and shared world ecomy.”

Macron expressed concern about global impact of U.S.-Chinese tension and hope for a prompt settlement.

“ tre war only results in losers,” Macron said in a speech. He expressed hope for settlement that will “safeguard interests of China’s and United States’ or major tring partners, starting with European Union.”

American and Chinese anunced what Trump called a “first phase” agreement on Oct. 12 after talks in Washington. Envoys are negotiating details. two sides have reported progress on ir biggest disputes and ecomists say a final settlement is unlikely this year.

In a conference call Tuesday, Commerce Secretary Wilbur Ross said he was “reasonably optimistic” that Phase 1 talks would be finished. More difficult issues would wait for later rounds, he said.

“We’re hoping Phase 1 will be a precursor of later agreements,” Ross said.

Trump and Xi were due to meet at this month’s garing of Asia-Pacific leers in Chile but event was canceled due to protests re. That dented hopes a meeting might produce progress, but Chinese government says two leers “maintain contact.”

Ross said two sides were looking for an alternative venue for a meeting.

European Union is looking for “real, substantial” progress on investment treaty before an EU-China summit in second half of 2020, EU Delegation in Beijing said in a statement.

“We want an ambitious agreement that grants wider market access, robust investment protection, greater predictability for our companies and commitments on sustainability,” statement said.

Beijing is trying to shore up consumer demand after ecomic growth sank to a multi-dece low of 6% over a year ago in latest quarter.

ruling Communist Party is looking to consumers to propel ecomic growth, replacing tre and investment. But shoppers are uneasy about tre war and possible job losses. y are spending less, which has battered sales of autos, real estate and or goods.

Chinese imports were off 5% from a year earlier in first nine months of year, down from double-digit growth in previous years. Imports of American soybeans and or goods were off 26.4% following Chinese tariff hikes and orders to importers to find or suppliers.

Business groups welcome greater access to Chinese consumers but express frustration Beijing is removing market restrictions one at a time inste of throwing open its ecomy 18 years after it joined free-tring World Tre Organization in 2001.

Many changes are in industries with entrenched Chinese competitors. Newcomers face high minimum capital requirements and or restrictions.

This week’s import fair highlights Beijing’s emphasis on tre in food and manufactured goods, an area dominated by Chinese factories. Its tring partners complain that is antiquated and too narrow. y want more access to finance, health care and or service industries and an end to curbs that block most foreign purchases of Chinese companies and or assets.

Opening services, an American strength, would target “a priority for U.S. government — reducing bilateral tre deficit,” said Jake Parker, a vice president of U.S.-China Business Council, in an email.

Still, American companies were “pleasantly surprised” by commercial opportunities at last year’s Import Expo, said Parker. He said cover of event by state television helped companies to promote mselves.

Shanghai expo also gives Beijing a chance to repair its im as a positive force for development following complaints its multibillion-dollar “Belt and Ro” construction initiative leaves host countries in Asia and Africa with too much debt.

Uncertainty caused by tre disputes is “leing drag” on commerce and investment, said WTO managing director Roberto Azevedo.

“We cant afford to let this continue,” Azevedo said. He called for a “more stable and more predictable tring system, an international ecomy with more integration, t less.”