1、 1 Rolf J.Langhammer and Wan-Hsin Liu KIEL POLICY BRIEF China between External Pressure and Domestic Policy Reforms:In Search of a Balance China alleviates inward FDI with a clear focus on promoting“quality”FDI with potential positive impacts also on local firms without direct investment relationshi
2、ps with multinational enterprises.China lowers Most Favored Nation(MFN)tariffs and simultaneously retaliates against US penalty tariffs.Chinas tariff policy has weaknesses which it should remove to avoid trade conflicts with its partners and primarily to foster its own economic transformation.The escalation of trade conflicts can trigger protectionist measures from China and other countries thus launching a race to the bottom against openness for international trade and investment.Institut fr Weltwirtschaft ISSN 21957525 N No o.117117 AugustAugust 20182018