Xi Jinping, president of China, recently addressed the ongoing disputes between the U.S. and China over import tariffs and foreign investment in a recent speech. Xi has promised to continue to open the Chinese economy to the U.S. by lowering tariffs on automotive import tariffs.
The speech settled the escalating tariff threats and frustrations over China’s trade and intellectual property policies, but lacked specifics regarding China’s future plans, according to Hellenic Shipping News. Xi has promised that China will strive to open their market to foreign investors in order to avoid a trade war of any sort. As a result of Xi’s speech, stock markets and the U.S. dollar remain strong in hopes of a compromise between the United States and China, according to Reuters.
What Does This Mean for the Shipping Industry?
The United States has not seen any major reductions of trade activities in ports, but is preparing certain ports, such as the twin ports in Los Angeles/Long Beach, for the impact of a potential trade dispute. About half of the imports that are shipped to the U.S. annually arrive at the twin ports, according to CNBC. If a trade reduction does occur, these ports could face major layoffs and impact all sectors of the shipping industry.
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