Reference News Network reported on May 15 that according to a report by Reuters on May 13, China stated in a declaration on the 13th that it would reduce the additional tariff rate on American goods to 10%, with the initial implementation period starting from 12:01 a.m. on the 14th for 90 days.

China will adjust the tariff rate previously increased on imports originating from the United States last month from 34% to 10%, and suspend the implementation of countermeasures that impose an additional 91% tariff on American goods in the next two rounds of countermeasures.

The statement said: "This significant reduction in bilateral tariff levels between China and the United States meets the expectations of producers and consumers in both countries, is beneficial to Sino-US economic and trade exchanges, and is beneficial to the global economy."

According to a report by Russia's Satellite News Agency website on May 14, the U.S. administration announced on the 12th Eastern Time that it would adjust its tariff measures on China starting at 00:01 on the 14th Eastern Time.

A spokesperson for the Ministry of Commerce of China introduced on the 12th that this high-level Sino-US economic and trade negotiation made substantial progress, significantly reducing bilateral tariff levels; the U.S. canceled a total of 91% of the additional tariffs, and China correspondingly canceled 91% of the countermeasures tariffs; the U.S. suspended the implementation of 24% "reciprocal tariffs," and China also correspondingly suspended the implementation of 24% of the countermeasures tariffs. This move meets the expectations of producers and consumers in both countries and aligns with the interests of both countries and the common interests of the world.

In addition, according to a report by the BBC website on May 12, at around 3:00 p.m. Beijing time on the 12th, China and the United States simultaneously issued a joint statement on the Geneva economic and trade talks. Both sides committed to significantly reducing the tariffs they had imposed on each other over the past month to continue advancing negotiations.

"Better than I expected." Zhang Zhiwei, chief economist at Pinpoint Asset Management, said that this is obviously very positive news for the economies of both countries and the global economy, greatly alleviating investors' concerns about short-term damage to the global supply chain.

Zhang Zhiwei also reminded: "But we must also be aware that this is only a three-month temporary reduction in tariffs. It may take both parties several more months to propose solutions or reach a final trade agreement, but this is a very good start."

Liang Lin, chief economist of Greater China at ING Group, said that reducing tariffs on China to 30% is sufficient to largely restore Sino-US trade activities.

"This joint statement brings a ray of warmth to the current tense global trade environment, which will partially alleviate the cost pressures on exporters over the past month," said Pang Guoqiang, founder of an export service provider in Hong Kong. He estimated that his business would become busy over the next 90 days, as this is a rare window of opportunity for export-oriented enterprises, with many companies focusing on bulk shipments.

According to a report by the Hong Kong South China Morning Post website on May 13, Nomura Holdings upgraded its rating for China, becoming the first global investment bank to re-rate Chinese stocks. Prior to this, China and the United States agreed to reduce tariffs on each other's imports.

The strategists of this Japanese company upgraded the rating for Chinese stocks from "neutral" to "tactical overweight" in a report on the 13th. The unexpected tariff reduction agreement between China and the United States surprised the market.

This decision is expected to provide more certainty for market participants, allowing investors to focus more on economic fundamentals and corporate earnings.

Nomura Holdings' report said: "The tariff agreement reached between China and the United States is a major surprise for the market."

In addition, according to a report by Bloomberg News on May 14, executives from Morgan Stanley and UBS Group believe that investor optimism toward China has been regained after the "truce" between the two largest economies over the weekend.

Ouyang Jujin, head of Asia Investment Management Services at Morgan Stanley Private Wealth Management, told reporters during an event in Hong Kong on the 13th that the breakthrough in Sino-US trade relations created conditions for the rebound of US growth stocks and China's upcoming "repositioning." Rebecca Lu, co-head of wealth management for Asia-Pacific at UBS Group, pointed out that clients' interest in the Chinese market is rising.

Lu said: "In recent months, at some international conferences, they have actively asked me about investment opportunities in China."

Ouyang Jujin said that the truce in tariffs "brings very attractive opportunities for both countries."

She said that as China transforms from a global factory to a global innovator, "we see some very attractive themes emerging again in China."

Ouyang Jujin said that her team had anticipated the rapid easing of tariff tensions, which indeed "came quickly and strongly."

(Compiled by Wang Qun and Liu Baiyun)

Original article: https://www.toutiao.com/article/7504512346778305051/

Disclaimer: The article reflects the views of the author and welcomes you to express your attitude in the [like/dislike] buttons below.