ll Street jumped at the open on Tuesday after Chinese President Xi Jinping promised to cut import tariffs, soothing investor's fears about a possible trade war with the US. In his first public comment since a trade dispute sank global stock markets last week, Xi vowed to open China's economy.
>> Cold War mentality and zero-sum games are more and more old fashioned and outdated.>> Xi spoke at the annual Boao Forum for Asia, promising several specific plans in his Tuesday address. That included, quote, significantly lowering import tariffs for cars, decreasing duties on some other products, and improving the investment environment for international companies.
There was a swift and positive reaction in financial markets, his speech sent US stock indexes up over 1% in early trading Tuesday. This comes after a week of escalating tariff threats between China and the US, sparked by Washington's frustrations with Beijing's trade policies. Reuters correspondent Andrew Galbraith is in Beijing.
>> So analysts are saying that while the tone of the speech was quite soothing, it didn't really contain any major surprises. Many of the specific areas that he mentioned have been mentioned by other officials and other regulators in the past year. At the same time, to the extent that this speech could help to soothe trade tensions and maybe hold off a full-blown trade war, I think it is seen as a positive development.
>> But now, with the ball in Trump's court, the big question is how will the US President react?