China or Buy More U.S. Semiconductor to Reduce Sino-U.S. Trade Deficit

When the Sino-U.S. trade war is raging against the city, the economic leaders of the two countries are negotiating frequently to resolve trade frictions.

On the morning of March 24th, members of the Political Bureau of the Central Committee, Vice Premier of the State Council, Director of the China Finance and Financial Bureau and the Chinese leader of the China-U.S. Comprehensive Economic Dialogue, Liu He, met with the U.S. Treasury Secretary Mu Nuchin. Munuchin briefed the Chinese side on the latest situation of the United States' 301 investigation report.

Liu He said that the United States recently announced the 301 investigation report and violated the rules of international trade, which was detrimental to China’s interests, was not conducive to the interests of the United States, and was not conducive to global interests. China is ready to defend its national interests and hopes that both sides will remain rational and work together to safeguard the overall stability of China-US economic and trade relations. The parties agree to continue to communicate on this.

On March 25th, the U.S. "Wall Street Journal" disclosed that Mr. Mutuchin and U.S. trade representative Lite Shizzle sent letters to Liu He to put forward specific requirements of the Trump administration, including reducing China's tariffs on U.S. cars and increasing China's U.S. The purchase of semiconductors and the expansion of US companies’ access to China’s financial industry.

A US semiconductor manufacturing facility.

One person familiar with the matter said that Mr. Munuchin is considering further visits to China.

On March 26, the British "Financial Times" reported that China is willing to make some efforts in narrowing the trade deficit and opening up the financial sector.

The Chinese side is considering reducing procurement of semiconductors from South Korea and Taiwan and replacing them with US imports to help narrow the trade deficit between China and the United States. Reuters said that last year the United States accounted for only 1% of China's total semiconductor imports.

In November last year, the Ministry of Finance of China disclosed that it had decided to liberalize the investment ratio of single or multiple foreign investors directly or indirectly investing in securities, fund management, and futures companies to 51%. After three years of implementation of the above measures, the proportion of investment is not limited; It will eliminate the restriction on the percentage of shares held by foreign-funded banks and financial asset management companies with a single foreign shareholding of no more than 20% and a total shareholding of no more than 25%, and implement the same internal and external banking equity investment ratio rules; The proportion of investment by insurance companies that invest in personal insurance business by single or multiple foreign investors has been relaxed to 51%, and there is no restriction on the proportion of investment after five years.

China is considering moving ahead with the above schedule.

On March 25, Vice Minister of Commerce and Deputy Secretary of International Trade Negotiations Wang Shouwen said at the “2018 Annual Conference of the China Development High-Level Forum”: “China’s trade in goods is a surplus, but service trade has always been a deficit. Nevertheless, China is still not Move the land to expand the service industry."

He revealed that the next step is for China to expand its opening up in areas such as finance, telecommunications, medical care, education, and pensions, and to relax or eliminate restrictions on foreign-capital shares such as banks, securities, funds, futures, and financial asset management companies.

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