The S&P 500 lost 0.4% Tuesday in a newsy session. Company-specific news contributed to outsized stock moves, but overall gainers in broader market had been nominal until a hiccup on the BREXIT issue dragged the major indices into the Red. The benchmark index closed at session lows below the 3000 mark.
China will take steps to safeguard its interests, but will not close its door to FDI (foreign investment) and the global industry despite trade frictions with the United States, a Chinese official said Tuesday.
Earlier this month, before Key US-China trade talks, Washington decided to widen its so-called “entities list” to include some Top Chinese AI (intelligence startups).
Firms on the US “entity list” are barred from buying US parts and components without US government approval due to national security concerns.
“We will look at the trade friction between China and the United States with an open mind and a big heart,” said a spokesman for the Ministry of Industry and Information Technology (MIIT), although China will also closely monitor the US entities list.
China will further open sectors including telecom, internet and autos to foreign investment, but at the same time, the United States should respect trade rules and act with caution.
“We will not blindly emphasize “self-developed and controllable,” and will not decouple from the development of international industries,” the official told reporters at a briefing.
The trade dispute with the United States has prompted China to downplay its Made in China 2025, the state-backed industrial policy aimed at catapulting China up the global technological value chain but is also core to Washington’s complaints about the country’s technological ambitions.
Under the Made in China 2025 banner, China was to upgrade its industrial base in 10 strategic sectors by Y 2025, including aerospace, robotics, semiconductors, artificial intelligence and new-energy vehicles.
Chinese President Xi has repeatedly urged the country’s core technologies to be “self-developed and controllable,” which has been viewed by industry players as a stance that favors local suppliers over foreign entities.
A big US complaint is that China has used coercion and outright theft to systematically obtain American IP and trade secrets and advance its standing in many high-technology industries.
China’s subsidies to state enterprises have led to Chinese industries substantially boosting output of products such as steel, which in turn has depressed global prices and hurt producers in the United States and elsewhere.
US officials argue the absence of a level-playing field makes it hard for US companies to compete.
In recent months, Chinese tech companies, especially those targeted by the United States, have vowed to deal with the US sanctions by relying on more self-developed solutions and procuring more from local suppliers.
China and the United States are working to hammer out a “Phase 1” trade deal near term, Beijing is carefully keeping its rhetoric Neutral. And in recent days, China has renewed efforts in stressing the need for both sides to aim for mutual gain, rather than to decouple their economies as a result of The Trump Administration policy of America First!
Tuesday, the major US stock market indexes finished at: DJIA -39.54 at 26788.10, NAS Comp -58.69 at 8104.30, S&P 500 -10.73 at 2995.99
Volume: Trade on the NYSE came in at 752-M/shares exchanged
- NAS Comp +22.1% YTD
- S&P 500 +19.5% YTD
- Russell 2000 +15.0% YTD
- DJIA +14.8% YTD
HeffX-LTN’s overall technical outlook for the major US stock market indexes is Neutral in here.
Latest posts by HEFFX (see all)
- Tesla Is Hiring Someone To Defend Elon Musk And Fend Off Attacks By Twitter Trolls - January 20, 2021
- PayPal Will Continue To Profit From A Huge Increase In Volume And Accounts - January 20, 2021
- Google’s Ethical AI Division Investigating Sharing of Sensitive Documents - January 20, 2021