During a speech at a forum on Saturday, May 25, Guo Shuqing, the People’s Bank of China’s party secretary and head of the China Banking and Insurance Regulatory Commission, commented that the impact of the trade war with the U.S. on the Chinese economy will be very limited.
Mr Guo reports that the huge domestic consumer market in China will digest most of the unsalable exports, and many of China’s exports will also shift to other foreign markets.
The US will continue to purchase China-made goods if there are no substitutes, but US consumers will need to pay more.
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China Daily addresses that a better access to China’s financial sector will lure global investors and disperse the gloom affecting the global economy. Senior officers added that foreign institutions with advanced performance in risk management, credit rating, consumer finance, endowments and health insurance are especially welcome.
The economy’s opening up is expected to enable China reach its GDP growth target above 6% this year.
In the meantime, Mr Guo commented
The United States escalated trade tensions, but it cannot solve any problem. Chinese financial markets, although they were excessively affected by trade tensions last year, are unlikely to be hit more dramatically going forward, as financial resilience is strengthening.
In light of the US-China trade war, China hastens its restructuring reform, changing its role from an export-dominating growth model to a more services-driven one.
The previous week, China highlighted the no-deal situation between China and the US, noting that there was no deal between the two countries, even though President Trump supported the opposite.
I am not sure what “deal” the US side was referring to. Perhaps it has bore in mind all along “a deal” of its own wildwish, one that China has certainly not agreed on however.
… China’s Foreign Ministry Spokesperson Lu Kang addressed.
Concluding, Presidents Trump and Xi Jinping are set to meet at the G-20 summit next month.
