been growing at an annual rate of 20 percent. as of end of 2003, fixed assets of the non - state sector accounted for 61. 1 percent of the nation ’ s total. ( 3 ) now there are more than 400, 000 foreign - invested enterprises in china. 4. efforts are being made to enhance innovation capacity. ( 1 ) to seize the great opportunity brought about by domestic industrial restructuring, the chinese government has speeded up the introduction of advanced technology, management expertise and high quality professionals from abroad. ( 2 ) enterprises are encouraged to enhance their capacity for market development, technological innovation and brand establishment. ( 3 ) the government has also redoubled efforts to facilitate study and research in basic science. ( 4 ) “ soft environment ” has been improved to encourage multinational companies to build r & d centers in china. 5. the opening process has been accelerated. ( 1 ) the chinese government has opened certain sectors in an orderly and sequenced manner according to the requirements of the market economy and the wto rules. some sectors, such as insurance and tourism as well as the local currency business for foreign banks have been opened even ahead of the wto schedule. ( 2 ) the “ go - abroad ” strategy has been firmly implemented, allowing enterprises to grow stronger through international competition. 6. financial reform has been deepened to speed up the development of the financial markets and improve competitiveness of the financial institutions. the following measures have been taken in recent years to strengthen financial stability, promote the reform of financial industry and improve the quality of financial service. accelerating joint - stock reform of the commercial banks, taking advantage of the strong economic growth momentum. commercial bank reform has undergone several important stages. first, the chinese government issued special treasury bonds amounting to rmb 270 billion yuan in 1998. the fund raised was subsequently used to recapitalize the state - owned commercial banks. in 1999 - 2000, four asset management companies ( amcs ) were established to take over part of the non - performing loans from the commercial banks. second, commercial banks used their own resources including reserves, profit and capital, to write off non - performing loans. third, us $ 45 billion foreign exchange reserves were used to recapitalize two state - owned commercial banks - the bank of china and china construction bank. meanwhile, efforts have been made to clean up their non - performing assets and improve their internal risk control and corporate governance. supervision on their capital adequacy has also been intensified.

remarks by javier guzman calafell, deputy governor at the banco de mexico, on “ attacks of tariffs : what about currencies? ”. euro50 group & cigi meeting. bali, october 12, 2018. 1 i thank the organizers, and especially nina massis and edmond alphandery, for the invitation to join you in this event. ten years after the outbreak of the financial crisis, the global economic recovery appears to have peaked, with gdp growth rates for this and the next couple of years projected to stabilize at levels similar to those recorded in 2017, and to decline subsequently to a less vigorous pace in line with lower potential rates of growth in many economies. further to the envisaged loss of momentum going forward, a number of remaining legacies, as well as new perils, continue to tilt the balance of risks for the outlook to the downside. chief among the latter is the rising trend of protectionism, evidenced by more restrictive trade policy stances, both actual and intended, in a number of countries, leading in turn to heightened tensions or outright conflict between governments. of course, the specific nature and extent of these tensions is varied and broad - ranging, and while there has been some relief in virtue of progress achieved in some particular cases, such as the recently announced agreements in the north america region and between the united states and korea, ongoing hostilities in other fronts remain a major source of concern. of particular note is the clash between china and the united states, which is widely regarded as the one with the potentially direst consequences, not only for the economies directly involved but, also, globally. in fact, the performance the views and opinions expressed in this document are the sole responsibility of the author and do not necessarily represent the institutional position of the banco de mexico or of its board of governors as a whole. throughout this year of a number of variables points to the effects that such a situation may already be exerting on the world economy. for instance, international trade volumes have notably slowed down relative to the upward trend they had displayed since 2015, while other indicators on the output side, such as export orders in global manufacturing pmis, sentiment indexes for trade oriented sectors, and capital goods orders in some of the main economies, are showing a declining trajectory that, if sustained, would eventually be reflected in international trade figures. why is such a potential setback in global openness to trade so worrisome? naturally, the complexities of the trade