China warns US investment curbs to hurt global growth

Updated Oct 01 2019

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In this November 9, 2017 photo, US President Donald Trump and Chinese President Xi Jinping participate in a welcome ceremony at the Great Hall of the People in Beijing, China. — AP/File
In this November 9, 2017 photo, US President Donald Trump and Chinese President Xi Jinping participate in a welcome ceremony at the Great Hall of the People in Beijing, China. — AP/File

BEIJING: China warned the US against trying to limit investment ties between the two countries, even as the Trump administration contradicted a report that Washington might be considering removing Chinese companies from American stock exchanges.

The foreign ministry appealed to Washington to “meet us halfway” and resolve disputes amid a tariff war that threatens to depress global economic growth.

China’s warning comes two days after a US official tweeted a Treasury Depar­tment statement saying the administration “is not contemplating blocking Chinese companies from listing shares on the US stock exchanges at this time.”

Stock markets slid after Bloomberg News reported last week that US officials were considering restricting investment ties with China. It said other options including banning investments in Chinese companies by government pension funds.

“To exert extreme pressure and even attempt to force the decoupling of China-US relations will definitely damage the interests of US and Chinese enterprises and people, cause financial market turmoil and endanger international trade and the world economic growth,” said a foreign ministry spokesman, Geng Shuang.

Negotiators are due to meet next week in Washington for a 13th round of talks aimed at resolving the tariff war over complaints about Beijing’s trade surplus and technology ambitions.

The two sides have announced conciliatory measures including lifting or postponing punitive tariffs. But there has been no sign of progress toward settling their core disputes. Economists say a temporary agreement is possible but a permanent deal is unlikely this year.

Published in Dawn, October 1st, 2019