Twitter
Advertisement

Moody's sees limited impact of US tariffs on Chinese exports, economy

Moody's Investors Service said on Wednesday the direct impact of the proposed U.S. tariffs on China's exports and economy will be limited but the "knock-on effects" are expected to be wider.

Latest News
article-main
FacebookTwitterWhatsappLinkedin

Moody's Investors Service said on Wednesday the direct impact of the proposed U.S. tariffs on China's exports and economy will be limited but the "knock-on effects" are expected to be wider.


The global ratings agency said it expects the U.S. and China will prevent a "significant escalation" in their trade dispute going by the negative impact the restrictions will have on both economies.

Meanwhile, China will allow domestic and foreign financial firms to compete on an equal footing and "sharply" expand the business scope for foreign banks, central bank governor Yi Gang said on Wednesday.

The pledge, made at the annual Boao Forum for Asia in southern Hainan province, echoed previous promises from Beijing to open the financial sector but comes at a time of heightened pressure on China from the United States over trade and access to China's markets.

On the trade front, Yi said China and the United States should deal with their trade issues in a rational way, and added that the central bank would not let the yuan depreciate.

Yi, who became governor of the People's Bank of China (PBOC) last month, said China would allow foreign investors into trust, financial leasing, auto finance and consumer finance by the end of the year.

The government would also not set foreign ownership limits for investment in wealth management companies set up by commercial banks by the end of 2018.

Asian stocks rose modestly on Wednesday, paring earlier gains as optimism that trade ties between Washington and Beijing were on the mend gave way to questions about the next phase of the diplomatic tit-for-tat between the two countries.

MSCI's broadest index of Asia-Pacific shares outside Japan was 0.35 percent higher. It gained 1.2 percent the previous day after a speech by Chinese President Xi Jinping was seen as striking a more conciliatory stance following a week of tit-for-tat tariff threats between Beijing and Washington.

Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement