China ready to help economy

China ready to help economy

China's authorities intend to develop cooperation with Russian Federation in the sphere of internet trade, space and aircraft industry to double the volume of bilateral trade, increasing it to $200 billion, Premier of the People's Republic of China Li Keqiang told TASS at a news conference on Friday, Trend reports. This is not how China behaves.

China is facing "downward pressures", Premier Li Keqiang admitted Friday as he announced plans to boost market vitality with a new foreign investment law backed by tax cuts to stabilise growth in the world's second-largest economy amid a bruising trade war with the US.

Chinese security guards march past an Apple store in Beijing, China, March 6, 2019.

Li said that while frictions exist and will continue between Washington and Beijing, shared interests between the two countries far outweigh their differences.

The law, created to ease concerns among foreign companies about the difficulties they face in China, will ban forced technology transfer and illegal government "interference" in foreign business practices. The Foreign Investment Law was passed Friday during the NPC's closing session.

Li also sought to soothe concerns that the tax cuts soon rolled out by the government will weigh on local finances, promising the central government will offer support to provinces in central and western China via payment transfers.

"There is none of that now, and there never will be (any of it) in the future", Li told journalists at a press briefing marking the end of China's yearly parliamentary meeting.

Li, however, ruled out the possibility of introducing drastic measures like quantitative monetary easing, which has been carried out in some advanced nations including Japan, saying such tactics have only a limited positive impact. It is also unclear if the two countries' leaders may soon meet.

A summit to seal a trade deal between U.S. President Donald Trump and Chinese President Xi Jinping will not happen at the end of March as previously discussed, Treasury Secretary Steven Mnuchin said on Thursday.

Getting to a final agreement will not be easy and the question of enforcement and follow up will be key.

His comments came after increased worldwide scrutiny of Chinese telecommunications giant Huawei Technologies Co Ltd, which has been caught in the cross-fire as trade tensions ratcheted up.

"Now both China and the United States need to come up with a strategy, consider how to coexist harmoniously with each other for a long time, and form a new world order and that is not easy", noted Han Jialiang, an independent scholar in Australia.

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