China could be about to bring the trade war to a premature end according to reports in the media.
The Asian powerhouse's leader, Xi Jinping, has said that China will open up to the rest of the world.
One of the things that the country will do is increase foreign investment caps for banks, asset managers and finance service businesses in China.
Xi Jinping also said that China will increase the protection for non-Chinese company's intellectual property by increasing policing and penalties for any Chinese offenders.
The Chinese President promised to get rid of foreign equity limits on the car industry. He also said that the Chinese would explore the possibility of free trade ports.
According to quotes sourced from the AFR, Xi Jinping said "We have every intention to translate them into reality sooner rather than later. We want the outcomes of our opening-up efforts to deliver benefits as soon as possible to people and enterprises in China and around the world."
He also warned against going back to a Cold War mentality saying "Paying attention only to one's own community without thinking of others can only lead into a wall. And we can only achieve win-win results by insisting on peaceful development and working together."
Foolish takeaway
Clearly this is a good thing for global share markets and global trade. This tariff trade war was the thing that could have caused the next global recession, but it appears as though the crisis has been averted for now.
Global trade shares have reacted very well to this news. BHP Billiton Limited (ASX: BHP) is up 1%, Amcor Limited (ASX: AMC) is up 1.57% and Macquarie Group Ltd (ASX: MQG) is up by 1.44%.
