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Published: Mon, March 20, 2017
World | By Ernestine Jimenez

What would a trade war between China and the U.S. look like?

What would a trade war between China and the U.S. look like?

The impact would be felt mostly by foreign, especially US, companies, he said, citing a report from an.

Li acknowledged there were internal and external risks to China's economy, but said talk of a sharp slowdown should stop.

"China hopes that no matter what bumps this relationship may encounter it will continue to forge in the right direction", Li added.

The premier affirmed Beijing's commitment to free trade, on which Chinese leaders have emerged as global advocates in response to Mr Trump's calls for controls on imports, despite complaints China is the most-closed major economy.

His comments come ahead of a meeting between Trump and Chinese president Xi Jinping, which is being brokered by officials on either side and could take place next month.

The world's two most powerful men face a complex and potentially acrimonious range of discussions, including the escalating crisis on the Korean peninsular, the deployment of a controversial USA missile defence system in South Korea and the thorny trade relationship between the USA and China.

He was speaking at a press conference after the close of the annual session of the National People's Congress, China's Parliament, fielding a wide range of questions from domestic issues to foreign affairs.

On the possibility of a trade war between China and the US, Li said- "We don't want to see any trade war breaking out between the two countries".

While many analysts doubt the strength and consistency of Chinese official data, even some veteran China sceptics agree that economic activity did pick up previous year, buoyed by heavy government stimulus in the form of record bank lending and billions in government infrastructure spending, as well as a speculative housing boom.

"Almost every year I have heard a prediction of the Chinese economy having a hard landing", he said.

The economy ultimately grew 6.7 percent a year ago.

"I should point out that 6.5 percent growth is not low speed and will not be easy for us to meet".

Private investment also rebounded over the first two months, which authorities attributed to policy support and a better economic environment compared to a year ago.

"This policy constitutes the political foundation of China-U.S. relations, which has remained unshaken in spite of the changing circumstances, nor can this foundation be undermined", Li said.

Meanwhile, a World Bank evaluation revealed China's business environment had seen continuous improvement over the past three years. "We still have a good reserve of policy options and instruments at our disposal".

Globalization is inseparable to peace, development and cooperation, he said, adding that closing the door and adopting beggar-thy-neighbor policies will solve no problems. "We welcome other partners to share with us in the development opportunities of China".

"China's foreign exchange reserves are way above the worldwide standard", said Li.

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