China's prime minister eases U.S. tensions ahead of expected Donald Trump summit

  • China's prime minister eases U.S. tensions ahead of expected Donald Trump summit

China's prime minister eases U.S. tensions ahead of expected Donald Trump summit

China has no intention of devaluing its currency to boost exports, as the move does no good for companies' transformation and upgrading, Li said.

Mr Li also said that Beijing has no plans to devalue its yuan to boost exports and will keep its exchange rate "generally stable".

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

Trump launched a constant volley of complaints against China on the campaign trail, denouncing it for stealing American jobs, manipulating its currency, militarizing the South China Sea and not doing enough to rein in North Korea's nuclear program.

Media in the US have reported that US President Donald Trump and Chinese President Xi Jinping will meet in Florida 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. Speaking at the annual session of the National People's Conference, Li said, "A trade war would not make our trade fairer".

Li said China does not want to see a trade war between China and the United States because that will result in no benefits to bilateral trade.

While many analysts doubt the strength and consistency of Chinese official data, even some veteran China sceptics agree that economic activity did pick up a year ago, 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.

"But I believe that our economic performance in the past several years. should suffice to put a full stop to such prophesies of a hard landing". The economy grew 6.7 percent past year.

Figures released in recent weeks have shown that the economy got off to a strong start this year, though growth appears still heavily dependent on credit, infrastructure investment and the property market.

Last year, the US' deficit in trade in goods with China reached Dollars 347 million, and Trump promised to close that gap, which he has also attributed to what he calls China's rigged currency exchange policies.

Globalization and world peace, development and cooperation are inseparable, Li said, adding that closing the door and adopting beggar-thy-neighbor policies would not solve any problems.

"We need to take very seriously the risks we are facing on the domestic front, especially in the financial sector".

The Premier said promoting global trade liberalisation requires the joint effort of every country.

He had said the world must "remain committed to promoting free trade and investment through opening up". The policy is the "political foundation of China-US relations", the premier said.