President Xi Jinping pledges pro-western reforms, raising hopes of an end to trade row with the US
Wall Street has staged a sharp recovery after the Chinese president, Xi Jinping, promised economic reforms and lower import tariffs, soothing fears over the country’s simmering trade standoff with the US.
The Dow Jones Industrial Average gained by more than 500 points in early trading on Tuesday in New York, reaching almost 24,500 points. The biggest gains were for companies such as Boeing and Caterpillar, which were seen to be among the biggest potential losers from a trade war between the world’s two biggest economies.
European shares also rallied amid renewed hope for a solution in the trade showdown triggered by Donald Trump, with the FTSE 100 ending the day 1% higher at 7,266. The pound rose on international exchanges after Bank of England rate-setter Ian McCafferty said Threadneedle Street “shouldn’t dally” when it comes to raising the cost of borrowing – expected by investors from as early as next month.
In his first public comments since the trade dispute started with Trump, Xi used a speech in Beijing to promise to open up the country’s economy. He also said China would raise the foreign ownership limit for companies operating in the nation’s aircraft, shipbuilding and motor industries.
“This year, we will considerably reduce auto import tariffs and at the same time reduce import tariffs on some other products,” he said.
