'Beautifully timed' stimulus measures to boost China's tech-led development: German expert

China's incremental policy toolkit and economic stimulus measures have already achieved sounding results in the stock markets, which will translate into a boost to the country's high-quality economic development cause in the coming months, said a German finance expert on Wednesday.

Hubertus Vaeth has been closely watching the developments as managing director of Frankfurt Main Finance, an initiative aimed at strengthening Frankfurt's position as a global financial center. In an online interview with the China Global Television Network (CGTN), he emphasized that the policy kit's detractors have been left with little ground to stand on amid an ongoing investment rally.

"You see, in the beginning, a lot of observers called it too little or too late, but they get quieter by the day. I say, it's a right mix, beautifully timed. The package, actually be, between the central bank and the government, has been unprecedented. It has a volume of 1.5 percent of the GDP, and comprises a lot of instruments which I believe will be very effective. So, from the early responses of the stock market, you could clearly say it's been a big success, and it's been a very important move. Why am I saying that? Since the beginning of the year, and one which is a critical monetary aggregate -- the monetary aggregate that comprises basically cash and term deposit and demand deposit -- these have been a negative territory for a wide, and these moves now clearly give such a shift to liquidity in the market, so that's a big boost," he said.

Chinese shares extended their winning streak on Tuesday, the first trading day after the week-long National Day holiday, with the benchmark Shanghai Composite Index up 10.13 percent to open at 3,674.40 points.

Vaeth expressed his expectations that massive gains in the financial sector will soon help accelerate China's efforts to build an economy based on innovation and advanced production -- what policymakers in the country call "new quality productive forces."

"Of course, now it's a liquidity-driven rally, and it's been historic by proportions. One week with a rally of 20 percent, that has been a very, very rare scene to experience. But obviously, they have to trickle down. It will be now a liquidity-driven rally, which hopefully will be supported by the trickling down of that impact into growth, into long-term economic effects. This will take a couple of months to really see, and when you see high quality, it has to be a massive shift away from a real estate-driven economy to technologically led recovery and clean-tech-led recovery," he said.

'Beautifully timed' stimulus measures to boost China's tech-led development: German expert

The United States' push to revoke China's Permanent Normal Trade Relations (PNTR) status, or granting the Most Favored Nation (MFN) treatment permanently, is a clear instance of unilateralism and trade protectionism, according to a white paper released by China's State Council Information Office on Wednesday.

The white paper, titled "China's Position on Some Issues Concerning China-US Economic and Trade Relations", aims to clarify the facts about the bilateral economic and trade relations between the two countries and lay out China's position on relevant issues.

The white paper said that the PNTR status is the ballast of China-U.S. economic and trade relations.

The U.S. push to revoke this status violates the rules of the World Trade Organization's (WTO), undermines China-U.S. relations, and disrupts the global economic order, the white paper noted.

According to the white paper, WTO rules require its members to unconditionally grant MFN treatment to all other members, a requirement that has binding legal force.

Over the past two decades, the PNTR has served to stabilize China-U.S. economic and trade relations. Revoking China's PNTR status will see China-U.S. economic and trade relations returning to the uncertainty and unpredictability that preceded China's accession to the WTO in 2001.

China opposes any unilateralist and protectionist acts that sabotage the multilateral trading system and hopes that the U.S. will be clearly aware of the possible harm caused by its attempt to revoke China's MFN status, the white paper said.

The white paper called on the U.S. to work constructively with the overwhelming majority of WTO members in safeguarding a fair and reasonable global economic and trade order and environment.

Rescinding China's most favored nation status undermines foundation of China-US trade relations: white paper