On Friday, Chinese President Xi Jinping has promised to abolish subsidies to Chinese firms that disrupt fair competition – addressed a major bone of contention in the United States trade talks.
President Jingping has repeated his past promises to lower the tariffs, increase imports, and open up more sectors of Chinese economy to foreign businesses.
The pledge came as the top US negotiators has planned to travel to Beijing the coming week for a new round of discussion aimed at resolving a month-long trade war, which hits businesses with tariffs on hundreds of billions of dollars amount of goods.
One of the major United States demands is to end government subsidies to Chinese firms.
During a summit on his Belt and Road Global Infrastructure Project, the Chinese President assures that “we will overhaul and abolish unjustified regulations, subsidies and practices that impede fair competition and distort the market.”
“We will treat all companies, enterprises and business entities equally and foster an enabling business environment based on market operation and governed by law,” added President Xingping.
He further reiterated that China would not get involved in competitive devaluation of its Yuan Currency, which is another main cause to angry the United States.