Hong Kong Chief Executive Carrie Lam delivers a speech at the second Hongqiao International Economic Forum of the 2nd China International Import Expo at the National Exhibition and Convention Center in Shanghai, Tuesday. -AP
President Xi Jinping promised more gradual market-opening steps at the start of an import fair Tuesday but no initiatives on technology policy and other irritants that sparked a tariff war with Washington.
The second China International Import Expo showcases the country's vast import market of 1.4 billion people to help deflect complaints that it improperly subsidizes industries and shields them from competition. It offers a marketing platform for foreign suppliers of goods from wine to yachts but does less for companies that already are established in China.
"The door that China is opening will only open further 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 made in June, to accelerate work on a China-Europe investment treaty.
Beijing has announced plans over the past two years to make its state-dominated economy more productive. They include cutting import tariffs and abolishing limits on foreign ownership in auto manufacturing, finance and other fields.
None directly addresses US, European and other complaints about technology policies and other irritants that prompted President Donald Trump to hike tariffs on Chinese imports, setting off a trade war that threatens to chill global growth.
Xi made no mention of the battle with Washington but called for building and "open and shared world economy." Macron said market entry must be "accelerated, made more transparent" and he appealed for equal treatment in subsidies and legal remedies.
Macron expressed hope a US-Chinese settlement will "safeguard the interests of China's and the United States' other major trading partners, starting with the European Union."
American and Chinese negotiators announced what Trump called a "Phase 1" agreement Oct. 12 after talks in Washington. Envoys are negotiating the details. The two sides have reported no progress on their biggest disputes and economists say a final settlement is unlikely this year.
On a conference call Tuesday with reporters, Commerce Secretary Wilbur Ross said he was "reasonably optimistic" the Phase 1 talks would be finished. He said more difficult issues would wait for later rounds."We're hoping Phase 1 will be a precursor of later agreements," Ross said.
Xi and Trump were to have met at this month's gathering of Asia-Pacific leaders in Chile, but the event was canceled due to protests there. Ross said the two sides are looking for a different location.The European Union is looking for "real, substantial" progress on the investment treaty before an EU-China summit in the second half of 2020, the 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," the statement said.
Beijing is trying to shore up consumer demand after economic growth sank to a multi-decade low of 6% over a year ago in the latest quarter.
The ruling Communist Party is looking to consumers to propel economic growth, replacing trade and investment. But shoppers are uneasy about the trade war and possible job losses. They are spending less, which has battered sales of autos, real estate and other goods.
Chinese imports were off 5% from a year earlier in the first nine months of the year, down from double-digit growth in previous years. Imports of American soybeans and other goods were down 26.4% following Chinese tariff hikes and orders to importers to find other suppliers.
Business groups welcome greater access to Chinese consumers but express frustration Beijing is removing market restrictions one at a time instead of throwing open its economy 18 years after it joined the free-trading World Trade Organization in 2001.Many changes are in industries with entrenched Chinese competitors. Newcomers face high minimum capital requirements and other restrictions.
This week's import fair highlights Beijing's emphasis on trade in food and manufactured goods, an area dominated by Chinese factories. Its trading partners complain that is antiquated and too narrow. They want more access to finance, health care and other service industries and an end to curbs that block most foreign purchases of Chinese companies and other assets.
Opening services, an American strength, would target "a priority for the US government reducing the bilateral trade deficit," said Jake Parker, a vice president of the US-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 coverage of the event by state television helped companies to promote themselves.
The Shanghai expo also gives Beijing a chance to repair its image as a positive force for development following complaints its multibillion-dollar "Belt and Road" construction initiative leaves host countries in Asia and Africa with too much debt.
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