Trade War's Effect On Manufacturing 'limited'

- Jul 25, 2018-

China's efforts to upgrade its manufacturing sector are totally inclusive and open-ended, and ongoing Sino-US trade frictions have "limited impacts" on its sprawling industrial economy, the country's top industry regulator said on Tuesday.

Huang Libin, spokesman for the Ministry of Industry and Information Technology, said China's strategy to upgrade manufacturing is based on the philosophy of openness and win-win cooperation. It is absolutely in line with international practices, he said.

"We will gear up the steps to build China into an advanced manufacturing power … and we sincerely welcome foreign companies to take part in such efforts," Huang said.

The spokesman said the trade spat with the United States will not derail China's industrial growth.

The economy is reducing reliance on exports and local companies are beefing up their strength in core technologies, he added.

Three years ago, exports of industrial products accounted for more than 20 percent of China's total industrial output. But last year, the proportion plummeted to about 10 percent, according to the ministry.

"Though some companies do report that their US customers asked to suspend orders and shipments, such cases are not common. The trade friction, in general, did not have a negative impact in the first half of the year," Huang added.

In the first six months, industrial output, an important economic indicator, expanded 6.7 percent year-on-year, maintaining steady growth momentum that was faster than the ministry had expected.

"China has complete manufacturing industrial chains and is equipped with high-quality technical workers. The existing global industrial layout will also not change in a short time, which will help reduce uncertainties," Huang said.