11 Apr 18
News

Tax cuts: Beijing olive branch or twig?

Chinese President Xi’s vow to reduce the import tariffs on cars has been claimed as a Trump victory, but analysts say it won’t solve the real issue: massive subsidies and regulations that make it difficult for US firms to compete in the Chinese market.

China has a track record of promising fairer trade regulations and not implementing them; on the contrary, these promises have a tendency to calm down the relationship between US and China, allowing China to secure even better export deals, say the analysts.

Another issue identified by US analysts is the fact that the US administration has failed to formulate specific objectives for the reforms of China’s import policy.

In the meanwhile, it seems that Xi’s attempt to massage like-minded and opponents of Trump’s zero-sum views, has succeeded.

Nevertheless, by the words of the White House’s press secretary, “we want to see concrete actions from China.”

Authored by: Yves Helven