China is expected to deepen reforms while pushing its market opening to a new level next year, a move that Chinese economists said will inject momentum into its economic growth amid a tougher external environment.
Dealing properly with the domestic economy as well as trade and economic relations with the U.S. shows that China, as the world's second largest economy, is relying on its internal strength to do its own things at its own pace, they told the Global Times Sunday.
China has suspended additional tariffs on some U.S. goods that were scheduled to take effect on Sunday, the State Council customs tariff commission said in a statement on Sunday. Other tariffs that had already been imposed on U.S. goods would be left in place, the commission said, according to its website.
"China hopes to work with the U.S. on the basis of equality and mutual respect to properly resolve each other's core concerns and promote the stable development of China-U.S. economic and trade relations," it said.
The announcement came after the two countries agreed to the text of a phase one trade deal on Friday, under which the U.S. has committed to rolling back tariffs in phases and China will increase its purchases of U.S. products based on market demand.
Both sides are discussing when, where and in what form the phase one deal will be signed, Chinese officials told a press conference on Friday.
Chinese experts noted that the deal was encouraging, as it will do good to the economies of both China and the U.S., and also inject confidence and fresh momentum into slowing global economic growth.
"Nevertheless, both sides might still have some leftover issues on the text of the agreement as every single word is of great significance to each country at this point," Bai Ming, a research fellow at the Chinese Academy of International Trade and Economic Cooperation in Beijing, told the Global Times on Sunday.
Wan Zhe, chief economist with China National Gold Group Corp, told Global Times Sunday that the deal could help increase global trade and investment which has been hit by the uncertainty of the trade war.
"As the text is generally in line with the main direction of China's deepening reform and opening-up as well as internal needs in pursuing high-quality growth, it will also help accelerate the process," said Wan.
Difficulties remain in the implementation as the mechanism for intellectual property rights and technology transfer is still unclear, said He Weiwen, an executive council member of the China Society for World Trade Organization Studies.
Some cautioned that talks over the next phase deal might be even tougher as critical issues that touch on the two sides' core interests are to be discussed.
He Weiwen also said that any agreements China reaches with the U.S. will be based on World Trade Organization (WTO) rules and market demands.
"China will not sacrifice the interests of its other trade partners to fulfill the demands of the U.S.," he said.
"Any agricultural products purchase made by China will be based on our own demands."
The U.S. should be fully aware that China will never give up its legitimate rights to further develop, He said.
"The inconsistent U.S. policy toward China, and the back and forth attitude of the Donald Trump administration, also pose more challenges toward the next phase deal."
Own pace
Beijing is focused on stabilizing its economic growth through deepening supply-side structural reforms and a more open market for foreign players, according to reports from the annual Central Economic Work Conference held in Beijing from Tuesday to Thursday.
"Pressure needs to be transformed into impetus as next year will face up to more complex and severe environments both externally and internally," China's Ministry of Commerce (MOFCOM) said in a statement on Saturday.
The statement pointed out that steady growth of the Chinese economy toward long-term sound development remains unchanged.
To achieve targets set for 2020, China will make sure stability is a top priority and uphold the policy framework of stable macro policies, flexible micro policies and social policies that ensure basic needs are met, according to the Xinhua News Agency.
MOFCOM said next year it will intensify its efforts at maintaining stability in employment, the financial sector, foreign trade, foreign investment, domestic investment and market expectations to promote a powerful domestic market and a higher level of opening-up.
The latest data from the General Administration of Customs showed China's foreign trade registered steady growth in the first 11 months of 2019 by expanding 2.4 percent on a yearly basis.
Data from the WTO showed Chinese exports grew at a rate higher than the average of major economies in the first three quarters.
The State Council on Thursday approved a draft regulation on China's foreign investment law, which specifies measures that facilitate and protect foreign investment, better address foreign investors' concerns and promote China's opening up at a higher level.
Li Daokui, director of the Center for China in the World Economy at the School of Economics and Management of Tsinghua University in Beijing, told the Global Times at an annual forum on Saturday that many measures deployed in the just-concluded key conference are consistent with pledges China made in the U.S. deal.
China will maintain prosperous economic growth as long as the reforms are carried out competently, said Li.
Wan agreed, saying that the new round of reform and opening-up, expected to be accompanied by boosting efficiency of all production factors and optimizing allocation, is definitely the key to future growth.
Li forecast that a growth rate at around 6 percent is likely for China's GDP to reach next year.
"Actually there should not be a '6 percent' psychological threshold as growth and efficiency will show their countering signs in the short term, but in the long run, the two factors help each other," Wan said.
