China makes conciliatory gesture to United States amid trade war


China has announced that it will cut a total of two trillion yuan (USD 297.5 billion) in taxes and corporate pension payments this year to ease financial pressure on enterprises.

Sources told Reuters in February that the central bank is not yet ready to cut benchmark interest rates to spur the slowing economy, but is likely to cut market-based rates.

"We hope the negotiations will have results", he said.

Li has also said the government would develop innovative mechanisms to better match people's supply and market demand.

To help finance the tax cuts, the government would need to tighten its belt, Li said.

This is an important thing China has to do in the next step to ensure that the law is implemented smoothly, Li said.

"China's economy will remain an important anchor of stability for the global economy", Li said.

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China and the united states have become closely intertwined through years of development and cooperation, it is neither realistic nor possible to decouple the two economies, he said.

"In terms of policy support - we may provide public rental housing units to private actors to provide services such as mobility, daycare, etc. Tax breaks may be provided to these service providers in terms of expenses on water, electricity and natural gas", he said.

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.

In an attempt to boost exports by bolstering economic cooperation with its neighboring countries, Li said China will make efforts to realize a free trade agreement with Japan and South Korea, warning against rising protectionism across the globe.

On Friday, China's parliament approved a new foreign investment law that promises to create a transparent environment for foreign firms, though there is scepticism about its enforceability.

In response, China, the world's second largest economy after the U.S., imposed tit-for-tat tariffs on Dollars 110 billion of American goods.

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