UPDATE: Stocks are rising on Wall Street Tuesday after Chinese President Xi Jinping offered possible concessions in a trade dispute with the U.S. Xi promised to reduce China's tariffs on imported cars and to improve intellectual property protection, steps that could help the U.S. and China reduce recent tensions over trade. The Dow Jones industrial average rose as much as 400 points in early trading.
President Xi Jinping set the stage for a possible effort to resolve a worsening clash with Washington over technology and trade by promising to cut auto import taxes, improve intellectual property protection and boost imports.
Xi's pledges at a business conference came as China filed a World Trade Organization challenge over one aspect of its sprawling conflict with President Donald Trump — last month's U.S. tariff hike on steel and aluminum.
Strains over U.S. complaints that China is flooding global markets with unfairly low-priced goods and pressuring foreign companies to hand over technology have spiraled into the biggest trade conflict since World War II.
Speaking to Chinese and foreign businesspeople, Xi didn't mention Trump or their dispute. He pledged progress on areas that are U.S. priorities including opening China's banking industry but gave no direct response to Trump's demands such as ending requirements for foreign companies to work through joint ventures that require them to give technology to potential Chinese competitors.
Private sector analysts saw Xi's speech as an overture to help resolve the standoff that has fueled fears the global economy may suffer a setback if other governments raise their own import barriers.
Trump has threatened to raise tariffs on Chinese goods worth $50 billion. Beijing fired back with its own $50 billion list of U.S. goods for possible retaliation.
In his speech, Xi tried to position China as a defender of free trade, despite its status as the most-closed major economy, in response to Trump's "America first" calls for import restrictions and trade deals that are more favorable to the United States. The speech was free of the nationalist bluster that increasingly marks Chinese official statements and repeatedly called for international cooperation.
"China's door of opening up will not be closed and will only open wider," said Xi at the Boao Forum for Asia.
Xi said Beijing will "significantly lower" tariffs on auto imports this year and ease restrictions on foreign ownership in the auto industry "as soon as possible."
He also promised to encourage "normal technological exchange" and to "protect the lawful ownership rights of foreign enterprises."
"President Xi's speech could create a very good platform to launch U.S.-China dialogue at the WTO to find a deal on intellectual property rights," said economist Rajiv Biswas of IHS Markit in a report. "This would be a victory for the world trading system and an important step away from the abyss of rising global protectionism."
The dispute is likely to end "with a concession from China," said Larry Hu of Macquarie Group in a report.
Singapore Prime Minister Lee Hsien Loong, also speaking in Boao, welcomed Xi's promises.
"We look forward to seeing these strategies elaborated, implemented and bearing fruit," Lee said, according to a transcript issued by his office.
Meanwhile, Chinese diplomats filed a request at WTO headquarters in Geneva for consultations with Washington over Trump's tariff hike on steel and aluminum.
If that fails, Beijing can ask for a ruling from a WTO panel of experts. China also has issued a $3 billion list of U.S. goods including pork and apples for possible retaliation.
Chinese officials deny foreign companies are compelled to hand over technology, but business groups sa