Photo: IC

Liu He, Chinese Vice Premier and top Chinese trade negotiator with the US, said on Monday that China has vibrant micro fundamentals and ample macroeconomic policy tools to ensure the sound momentum of economic development, noting that China's economic growth is shifting gears and high-quality growth is replacing high-speed growth.

The Vice Premier reaffirmed China's stance in opposing trade protectionism on Monday, following a turbulent weekend that saw the trade war escalating. Liu emphasized that China wishes to proceed with trade negotiations calmly to resolve issues.

China opposes technology sanctions, trade protectionism and escalating trade tensions, as these impact China, the US and the world negatively, Liu said at the opening ceremony of the 2019 Smart China Expo, which kicked off in Southwest China's Chongqing Municipality on Monday.

China will also take measures to protect the integrity of its industrial chains, Liu added.

On Saturday, US President Donald Trump announced on Twitter that he will raise tariffs on $250 billion of Chinese goods to 30 percent, up from 25 percent, starting October 1. He also said that the US would raise tariffs from 10 percent to 15 percent on another $300 billion of products, effective September 1, after China announced it would raise tariffs on $75 billion worth of US goods.

Mainland stocks edged down on Monday following deteriorating twists in China-US trade relations. The Shanghai Composite Index was down 1.23 percent to 2,861.68 points as of 11:08 am, while the Shenzhen Component Index lowered by 1.08 percent to 9,261.43 points. 

The US stock markets were hit harder. The US-based Dow Jones Industrial Average slipped by 2.37 percent to 25,628.90 points on Friday, while NASDAQ decreased by 2.61 percent.

The yuan's reference rate against the greenback was stable on Monday, strengthening two basis points, data from the People's Bank of China showed.

However, Liu strongly conveyed China's ability to keep its economic growth on track.

Amid the changing trend of economic growth patterns, industries related to mobile internet and artificial intelligence (AI) accelerated, with an initial survey suggesting the value of China’s AI-related industries hitting 500 billion yuan ($70.5 billion) in 2018. 

The AI-related industry is becoming a key growth driver for the national economy, said Liu.

China will continue to open its arms for foreign investment, including US companies, to invest and operate in China, Liu said in his speech. At the same time, the government will step up to improve its business environment, enhance the protection of intellectual property rights and promote the growth of smarter industries in an open and transparent environment.

China continues to welcome foreign companies, including US companies, to invest in China, Liu said in his speech.

Global Times