Chinese president Xi Jinping pledged to reduce tariffs on vehicle imports and ease limits on foreign ownership in the automotive industry during a speech in China’s Hainan province Tuesday.
Jinping briefly outlined a plan to reduce vehicle tariffs in China and make it easier for foreign automakers to operate within the country as part of “a new phase of opening up.” His statements follow recent remarks by U.S. president Donald Trump, which targeted China’s 25% tariff on imported foreign cars. The Trump administration argues China’s high tariffs are not fair, as the U.S. charges just a 2.5% tax on foreign automobiles.
The stock market reeled as Jinping and Trump went back-and-forth over auto import tariffs in previous weeks. Jinping’s recent statements were encouraging, though, with Toyota and Honda shares spiking roughly two percent Tuesday. Experts believe the US-China trade dispute will require further ironing out, but the Chinese president appears to want to put an end to the widely publicized trade row.
Jinping also warned against the US and China adopting a “Cold War mentality,” in regards to trade and called for open dialogue between the two superpowers going forward.