The New York Times article "China Pledges Oppeness in Hopes of Reaching a Trade Deal" discusses China's supposed willingness to renegotiate trade deals and open their markets to more foreign investment. This comes in light of Trump's $50 billion and $200 billion tarriffs imposed on China in the recent years. The aritcle also comments on how Chinese investores are becoming more cautious and have slowed investing. These promises are suspiscous, especially after Han Zheng commented that "We do not strive for a trade surplus" while claiming that China wanted to increase imports.
This newly proposed oppeness and import seeking Chinese economy seems contrary to the East Asian Model that brought the contry to economic prominence. The model focuses on manufacturing goods, exports, manipulating currency values, conservative spending, and turning away from foreign investment and borrowing. Perhapse China is evolving into a new phase of economic growth where it has decided to open its markets to more IPE and imports in pursuit of capital resources and cheaper consumer goods, however I believe the United States should be cautious. These promises may be a clever ploy to convince the US to life its tarrifs on Chinese imports.
The article further mentions hopes of domestic sources repealing the US tariffs, in which case it would be interesting to see how willing China would be to openness and renegotiation. China has many state owned business used to crowding out foreign and private competitors. While there may be some serious benifits for economic development if China does open their markets to FDI and foreign competitors, it will come at the cost of the powerful hold the Communist party has over its state owned enterprises (SOE) and the economy as a whole.
The US can continue to apply pressure in attempt to open Chinese markets to more imports and FDI, which could help the economic development of both countries. It will be interesting to see how long the tarriffs will remain in effect and if the damage to both countries is worth the payoff if any arises at all.
Read the Aricle here.