President Donald Trump said the USA may be able to avoid a trade war with China if Beijing is willing to open its market more to American products, offering a path away from a confrontation over tariffs.
At the 5th India-China Strategic Economic Dialogue in Beijing, Niti Aayog Vice Chairman Rajeev Kumar said that Beijing and New Delhi were unruffled by the "protectionist noises" and could well be the important anchor for the world economy.
Diplomats in many other countries learned the secret to good relations with the United States years ago: Tell the Americans what they want to hear.
That sent its quarterly trade surplus with the USA surging 19.4 per cent to US$58.25 billion (RM225.6 billion), though the March reading narrowed to US$15.43 billion from US$20.96 billion in February.
China has spent the past two decades building a "blue-water" navy able to project force into the Indian and Pacific oceans, which surround the country's growing economic interests in Africa, the Middle East and Southeast Asia. "We hope that the USA will listen patiently to rational and pragmatic voices on the trade balance issue".More news: Set List: Eminem @ Coachella With 50 Cent, Dr. Dre
"We both have to do ease of doing business so that our procedures, red tape, and non-tariff barriers get sorted out so that investors from both the countries in their respective fields get the investment opportunities".
"China is committed to a serious financial deleveraging over the span of 2018-2020, with a focus to crack down on financial excesses in local governments and state-owned enterprises", said Hao Zhou, an economist at Commerzbank.
"If they impose tax on the household appliances, they're going to raise the price and that will affect the citizens of the United States in the end", said Chau, the Dongguan factory owner.
However, Chinese officials have in recent days repeated that the two sides were not negotiating on the issue.
But China's commerce ministry later reiterated that no negotiations were underway between the two capitals as Washington had not shown enough "sincerity".
Chinese exporters supply most of the world's mobile phones, personal computers, televisions, toys and other light manufactured goods.More news: 2 bodies, vehicle found after California family's SUV went into river
Trump quickly thanked Xi for his "kind words" and pledged, "We will make great progress together!"
"Before, we didn't think we're affected because we're doing little metallic parts", said Chau at his three-storey beige-coloured-plant in Dongguan.
He also said "Cold War mentality" and arrogance had become obsolete and would be repudiated.
"The US is a huge market and some of the companies, especially those less competitive, may be washed out", said Danny He, the founder of Alpha Lighting, a small LED maker in Dongguan with 100 workers. "And, you know, at a certain point, they run out of bullets".
That helped narrow its surplus with the U.S. in March alone to $15.43 billion from $20.96 billion in February, but that was still almost 18 percent higher than March 2017.
Clad in military fatigues and as determined as ever to modernise the People's Liberation Army, Xi on Friday presided over a large military parade involving the country's only aircraft carrier, the Liaoning.More news: GE3, the massive asteroid that grazed the Earth on Sunday