BEIJING: China is ending limits on foreign ownership in auto manufacturing, insurance and other fields but didn’t directly address complaints about trade and technology that are fueling conflict with Washington.

The change, announced late on Thursday, had been sought by Washington, Germany and other trading partners. They complain Beijing blocks access to its state-dominated economy while Chinese companies operate freely in their countries.

China’s announcement followed President Donald Trump’s threat, rescinded on Wednesday, to restrict Chinese investment in the United States. But it confirmed promises made as early as last November, before the latest dispute erupted.

Business groups said on Friday it was too early to know the impact until licensing and other rules are released.

Many changes “were previously articulated by China’s senior leaders,” said Jake Parker, vice president for China operations of the US-China Business Council, an industry group. “But they still represent in theory significant openings.”

The announcement included no changes that directly address US complaints Beijing steals or pressures foreign companies to hand over technology.

Trump has threatened to impose tariffs of up to 25 per cent on as much as $450 billion of Chinese goods. Beijing says it will retaliate, prompting fears the dispute could chill global trade and economic growth.

The ruling Communist Party has insisted on making changes at its own pace while sticking to a state-led industrial development strategy seen as a path to prosperity and global influence.

A separate government report Thursday defended China’s trade record in a possible attempt to deflect pressure for change by emphasising benefits to other countries from selling to its growing market.

Beijing has gradually eased entry to industries such as finance or electric car manufacturing once Chinese companies establish a strong competitive position or when it wants to spur development.

Under the latest changes, restrictions on foreign ownership in finance, transportation, professional services and manufacturing of autos, ships and aircraft will end.

The Cabinet planning agency retained a ban on foreign ownership in publishing, internet news services, film and TV and restrictions on oil and gas exploration and telecoms.

Published in Dawn, June 30th, 2018