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Official representatives from both countries are to meet in Washington once again around mid-October, shortly before China’s Communist Party is to hold its fourth plenary session of the 19th Central Committee later in the month, when it is expected that the Chinese government will prioritise the manufacturing sector in its forthcoming policies.
Liu He, China’s Vice Premier will be travelling to Washington for the upcoming 13th round of trade talks. “The two sides should find a solution through equal dialogue in accordance with the principle of mutual respect, equality and mutual benefit”, Wang Shouwen, China’s Vice Commerce Minister said at a recent news conference with other officials. However, despite the escalating dispute, which has depressed stock prices and remains a threat to the global economy, it is unclear whether either party will be ready to make concessions and reach an agreement.
The Communist Party’s fourth plenum, during which elite party members outline the strategic blueprint, was expected to take place in autumn 2018, shortly after the trade tensions between China and the U.S started, but it has been postponed by at least a year. Some economists expect that much of the Chinese strategy will focus on modernising the country’s manufacturing sector. To help the domestic manufacturing firms, a tiered approach to finance has been implemented; on September 20, the Chinese central bank is reported to have lowered its one-year loan prime rate by five basis points, to 4.2%, while leaving the rate for five-year tenors unchanged at 4.85%.
Sources: South China Morning Post/Time