Month: May 2019
eign exchange reserves at $3.095 trillion at the end of April. The reserve amount was stable, altho
ugh it slightly retreated from $3.098 trillion at the end of March, according to the State Administration of Foreign Exchange.
Li Yang, director of the National Institution for Finance and Development of the Chinese Academy
of Social Sciences, said that China is unlikely to sacrifice foreign exchange reserves to de
fend its currency, even if depreciation pressure rises amid any escalation in trade tension.
In May, the offshore RMB exchange rate against the US dollar dropped more than 3 percen
t under market pressure as global investors worried about the escalation of trade friction.
Guo Shuqing, Party secretary of the People’s Bank of China, the central bank, said on Monday that higher US tariffs on Chin
a’s imports triggered financial market volatility, and this also affected the offshore RMB.
hina’s innovative and high-quality development,” Sui Zhenjiang, vice-mayor of Beijing, said on Wedne
sday during a 5G industrial development and investment summit held in Yizhuang, in southeastern Beijing.
“Beijing is actively transforming itself as a national scientific and tech
nological innovation center. With advantages in complete telecom infrastructure, abunda
nt talent and strong research and development capabilities, we have the resolve to accelerate the push for making brea
kthroughs in 5G technologies and build an independent and innovative 5G industrial system,” Sui said.
As of May 24, the three major telecom operators－China Mobile, Chin
a Telecom and China Unicom－have established 4,700 5G base stations in Beijing, acc
ording to Wang Gang, head of the Beijing Municipal Bureau of Economy and Information Technology.
lear that if the US treats the Chinese negotiating team with respect and shows the willingness to talk wit
hout using outside pressure, there is a high possibility that there could be a productive trade deal.
“Otherwise, I think we might be facing a prolonged period of problems for both sides,” she said.
Regan, at the close of their 15-minute talk, said again, “No one wan
ts trade wars. But we have to think long hard about the right next steps.”
Liu, however, did counter an assertion by Regan that China’s government controls its entire economy.
“Everybody thinks that China’s economy is state-owned, state-controlled, every
thing is state, state, state. Let me tell you that is not the true picture,” Liu said. “We are a
icy tools to offset short-term downside pressure, while the financial risks are under control as the country’s debt level has shown signs of stabilizing, Zhang said.
China’s overall debt-to-GDP ratio had dropped to 249.4 percent
by the end of 2018, 1.5 percentage points lower than a year earlier, according to the PBOC.
If trade tensions escalate further, more opening-up policies in the sectors of medical
care and education will help boost global investors’ confidence in the Chinese economy, Zhang added.
By hiking the tariffs on $200 billion of Chinese goods from 10 percent t
o 25 percent just when it seemed the China-US trade talks would achieve a bre
akthrough, the United States has not only intensified the trade dispute but also ensured both sides take a knock.