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China's Ministry of Commerce said on Thursday that the country has not been in touch with the United States about restarting trade negotiations, as the premise of negotiation is trust and credit.

Speaking to reporters at a regular briefing in Beijing, ministry spokesperson Gao Feng made the comments after the United States issued a list of Chinese goods worth US$200bn set to be hit with new tariffs.

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When asked how China will respond to the risk that foreign-funded enterprises may withdraw or transfer to other countries after taxation, Gao said that he felt deeply regretful about those foreign-invested enterprises, including US-funded companies, which may be affected by the tariffs.

He further emphasised that China will continue to improve the business environment and protect the legitimate rights and interests of foreign-funded companies in order to make the country a top choice for foreign investment.

In addition, China will take more measures to reduce the impact on enterprises, such as encouraging enterprises to adjust their import structures, tapping the potential of China’s consumption market, and expanding into a new market. “After all, approaches are always more than difficulties,” said Gao.

As for what measures China will take to further expand consumption, Gao stated that they will promote consumption that brings convenience to rural and urban residents, as well increase the supply of medium- and high-end products - partly by increasing imports and creating cities with world-class consumption capacity.

The country will also improve its supply chain and create a safe and reliable consumption environment, he added.

The ministry also issued a statement on US’ latest move on Thursday evening. The full text in English can be found here.

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