BEIJING: China’s opening up of its economy will help it cope with the trade frictions with the United States, a central bank adviser said on Tuesday, adding that China cannot go backwards on its market reforms.
But China will forge ahead with its reforms at its own pace, Liu Shijin, an adviser to the People’s Bank of China (PBOC), said at a finance forum in Beijing.
An escalating trade war with the United States is threatening to overshadow China’s plan to celebrate 40 years of economic achievements since reforms initiated by former Chinese leader Deng Xiaoping in December 1978.
China and the United States have tariffs on billions of dollars of each other’s goods, roiling financial markets and adding to fears of a slowdown in global economic growth.
Washington is demanding that Beijing improve market access and intellectual property protection for US firms, cut subsidies and narrow a record trade gap.
Chinese President Xi Jinping and US President Donald Trump are due to meet over trade at the G20 summit in Argentina at the end of November.
“The Sino-US trade frictions are still ongoing, private firms’ expectations are unstable, and some people are saying they cannot see clearly and are a bit anxious,” Liu said.
To cope with the trade frictions, China should implement a high level of opening up of its market and economy, but it will push ahead with those reforms on its own steam and “not being forced by others,” he said.
The European Union has also urged China to take “concrete” steps to further open its market to foreign firms and provide a level playing field.
EU business lobbies say reform commitments have failed to go far enough.
In recent months, China has also been accused by some Western governments for pulling other nations into a debt trap with its so-called Belt and Road initiative. China has denied the charge.
At home, struggling small businesses are worried that Beijing is more focused on supporting giant state-owned enterprises and deepening the presence of the ruling Communist Party in private firms than helping entrepreneurs tide over a period of slowing growth.
“We have achieved great success in building a market economy after 40 years, but it’s still imperfect. China’s market economy is still at low level and imperfect,” Liu said.
But China will persist with its reforms, allowing the market to play a decisive role in allocating resources, he said.
China’s economic opening-up to help offset US trade friction
China’s economic opening-up to help offset US trade friction
- China and the United States have tariffs on billions of dollars of each other’s goods
- Chinese President Xi Jinping and US President Donald Trump are due to meet over trade at the G20 summit in Argentina
GCC chambers plan Gulf Guarantee project to boost intra-regional trade
DAMMAM: The Federation of GCC Chambers, in cooperation with the Customs Union Authority, intends to launch the Gulf Guarantee Project to provide a unified mechanism for exports and trade transactions and to enhance the efficiency of intra-GCC trade, which reached about $146 billion by the end of 2024, Saleh Al-Sharqi, Secretary-General of the federation, told Al-Eqtisadiah.
Al-Sharqi said, on the sidelines of his meeting with media representatives at the federation’s headquarters in Dammam, that the initiative represents a qualitative leap in supporting intra-GCC trade by facilitating transit movement through a single point, contributing to cost reduction, accelerating the flow of goods, and enhancing the reliability of trade operations among Gulf markets.
He explained that the federation recently launched a package of strategic initiatives, including the Tawasul initiative aimed at strengthening communication among Gulf business owners and supporting the building of trade and investment partnerships, in addition to the Gulf Business Facilitation initiative, which seeks to address challenges facing Gulf investors and traders, simplify procedures, and improve the business environment across member states.
He noted that these initiatives fall within an integrated vision to address obstacles hindering investment and intra-regional trade flows by developing regulatory frameworks, activating communication channels between the public and private sectors, and supporting Gulf economic integration in line with the objectives of the Gulf Common Market.
In a related context, the Secretary-General affirmed the direction of GCC countries to leverage artificial intelligence technologies to support trade and investment flows, stressing the importance of establishing a unified Gulf committee for artificial intelligence to coordinate efforts and exchange expertise among member states. He said the federation will support this direction in the coming phase, drawing on leading international experiences, particularly the Chinese experience in this field.
Regarding the recently announced electric railway project between Riyadh and Doha, Al-Sharqi revealed that technical and advisory committees are working to complete the necessary studies for the project, confirming that it will positively impact passenger and freight movement between the two countries, enhance Gulf logistical integration, and support regional supply chains.
On investment opportunities available to Gulf nationals in the Syrian market, he said the federation is coordinating with private sector representatives in Syria to overcome obstacles that may face the flow of Gulf investments, in addition to working to provide adequate guarantees to protect these investments and ensure a stable and attractive investment environment.
In response to a question from Al-Eqtisadiah about the impact of tariffs imposed by the US on imports of iron, steel, and aluminum, he said that economic and technical committees in GCC countries are continuously monitoring the repercussions of these tariffs on the Gulf private sector, assessing their effects, and taking the necessary measures to protect it from any potential negative impacts.
Al-Sharqi also pointed to the launch of two specialized committees in the transport and logistics sectors and in real estate activities, given their pivotal role and active contribution to Gulf gross domestic product, stressing that developing these two sectors is a fundamental pillar for enhancing economic diversification and increasing the competitiveness of GCC economies.
He added that during the past year the federation held more than 40 meetings and official engagements with Gulf and international entities, participated in nine regional and international events to strengthen the presence of the Gulf private sector on the global stage, and signed 12 agreements and memoranda of understanding with Gulf, regional, and international entities to open new horizons for economic and investment cooperation.
During the same year, the federation launched four digital platforms to support the Gulf private sector, bringing the total number of its digital platforms to eight serving the business community across member states.
The Secretary-General affirmed that the federation will continue working with relevant economic entities to unify procedures and regulations, reduce non-tariff barriers, and accelerate mutual recognition of products and standard specifications, in a way that enhances the competitiveness of the Gulf economy and supports the growth of intra-GCC trade.
