Chinese President: Xi Jinping’s speech rekindled investors’ hopes that the looming trade tensions between U.S. and China would soon ease

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President Xi Jinping of China held a speech on Tuesday that reignited investors and analysts’ hopes that the rising trade tensions between the United States and China would soon ease. The speech was held at the Boao Forum for Asia, located at the southern province of Hainan, and is considered as one of the President’s first major addresses in a year.

According to reports, Xi Jinping’s speech indicated that the country would open its economy further, along with indications that China will lower import tariffs on products including cars. Xi mentioned that the country will expand its market access for foreign investors, which was considered as a point of disagreement for the United States President’s administration, which recently imposed and added billions of Dollars’ worth of tariffs on Chinese goods.

In accordance to this, Xi Jinping also mentioned that China would increase the foreign ownership limit in the automobile sector soon, along with announcement that China will reduce import tariffs on some other products. The country has been promising since 2013 to lessen restrictions on foreign joint ventures in the automobile industry, which would definitely allow foreign companies to take a majority stake.

In accordance to this, foreign business groups accepted Xi Jinping’s engagement to reforms, which includes assurance to strengthen legal deterrence on intellectual property violators.

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