Now It's a Trade War: China to Increase Imports

A few days ago in Trade War Lessons from Ancient China, I wrote:

What can China do to mollify Trump? The CCP doesn't want an open the economy, it has been ratcheting up its control. It would have already granted its own citizens greater economic freedom if this was an acceptable solution. Thus, the only politically acceptable option that will get China back on its long-term track is greatly increased imports. And if they study Guan Zhong, they would know that's the best way to fight an economic war.

Instead of importing from everywhere, however, China will cut tariffs on non-U.S. goods.

ZH: In Latest Trade-War Escalation, China Will Cut Tariffs On Imported Goods

China is planning to cut the average tariff rates on imports from the majority of its trading partners as soon as next month, two people familiar with the matter said, in a move that will lower costs for consumers as a trade war with the U.S. deepens.

Premier Li Keqiang said Wednesday that China would further reduce the tariffs, without elaborating. The two people who spoke on the new reduction asked not to be named as the matter isn’t public yet.

By cutting duties on goods even as it retaliates against President Donald Trump’s trade war with higher charges on some U.S. goods, China is following through on long-stated goals to boost imports. The move comes as the nation is trying to stimulate domestic consumption to support a slowing economy, and follows similar cuts to tariffs in July on a wide range of consumer goods.

This will boost China's soft power, but it won't end the trade tensions with the United States because falling exports to China is a politically acceptable result for Washington if the offset is larger declines in Chinese imports.