Chinese Premier Li Qiang said at a gathering of global executives that began in Beijing that the Asian country is ready for possible unexpected shocks and called on the meeting participants to resist protectionism and defend globalization.
Last weekend, the Chinese capital started a forum attended by chief executive officers, including Apple’s Tim Cook, FedEx’s Raj Subramaniam, and Pfizer’s Albert Bourla. The relevant event was held against the background of the fact that the President of the United States, Donald Trump, by tightening tariff policy, is increasing trade pressure on the Asian country, seeking to rebalance what, in his opinion, is an unfair relationship.
The Chinese premier said that decoupling and breaking supply chains would only worsen the crisis. In the context of the relevant statement, he also pledged to expand the access of foreign investors to markets in various sectors.
Last Sunday, March 23, during an opening address at the annual gathering, Li Qiang said that if the world returns to the law of the jungle, it will be a step backward in history and a tragedy for humanity. According to him, Beijing has prepared for possible unexpected shocks, which mainly come from external sources. He stated that, if necessary, the government of the Asian country will implement new policies to ensure the smooth operation of its economy, which is currently the second-largest in the world.
It is worth noting that in the context of the active functioning of the mechanisms of globalization as a kind of state of the existence of the world in numerous dimensions, the Chinese economy has reached significant heights. For this reason, violations within the mentioned system or even its total decline to the point of disappearance against the background of increased practical implementation of the ideology of protectionism will mean critical losses for Beijing. In the relevant context, it is worth noting separately that the Chinese economy relies heavily on export activities, for which globalization is what can be called the most favorable environment.
Currently, the Asian country is striving to strengthen investor confidence. In this case, it is extremely important for China to stop the negative trend of an intensive decrease in the volume of foreign financial injections and reverse the corresponding process. It is also worth noting that the Asian country’s economy has been showing a slowdown lately. Beijing as a political center and the US-China business community is preparing for the consequences of tariffs from Washington, which may increase in April.
The gathering, known as the China Development Forum, has long been a kind of platform for exchanging thoughts between top officials of an Asian country and foreign business leaders. This year, this event has a special significance. The relevant platform is a space for informal diplomacy between China and the United States at a time of increasing geopolitical uncertainty, which is largely reflected in the plane of relationships between Beijing and Washington.
On the sidelines of the mentioned gathering, Li Qiang met with US senator and Mr. Trump ally Steve Daines. Some media outlets described this fact as a kind of first step towards organizing a meeting between the head of the People’s Republic of China Xi Jinping and Donald Trump.
Li Qiang stated that China and the United States share extensive common interests and a broad space of cooperation. He also called for mutually beneficial collaboration between the two countries.
It is worth noting that Donald Trump has repeatedly stated his desire to reach a deal with China. Last week, he signaled that America’s top trade official and Chinese counterparts could hold talks until the end of the current month.
Since taking office in January, Donald Trump has imposed 20% tariffs on all goods imported from the Asian country. It is worth noting that these measures came into force against the background of the continuing existing levies for products worth hundreds of billions of dollars. Beijing has decided on retaliatory tariffs against Washington. The relevant measures affected agricultural and certain energy products. China also announced new export controls on raw materials.
Tariffs from the United States may be increased in the coming weeks. It is expected that in the first days of April, the White House will announce reciprocal duties against several countries. By tightening trade policy, the Donald Trump administration aims to bring manufacturing back to the United States. Washington perceives the current configuration of relationships between the US and its trading partners as unfair.
The desire of the Donald Trump administration to change the economic cooperation between the United States and China and the expected upheavals in the global trade space became a major discussion point at the gathering in Beijing.
Inter IKEA Group chief executive officer Jon Abrahamsson said in a media comment that the company firmly believes in open, rule-based trading that works. The corresponding statement was made on the sidelines of the event in Beijing. He also noted the commitment to the view that trading is something very positive and really enables scale and allows to take advantage of comparable advantages globally. According to him, trade will be a key enabler for some of the important transformations that need to be done now in sustainability, affordability, etc.
Rich Lesser, global chair of the Boston Consulting Group, said during a forum panel that the current restructuring of trading relationships requires businesses to be more flexible and invest in tools such as artificial intelligence. It was also noted in the relevant context that short-term disruptions demand immediate intention, but long-term shifts imply the need for technology and sustainability. Moreover, Rich Lesser stated that the geopolitical changes to reshape trade for decades to come.
In a sense, for China as a political system, the current global state of affairs has become an opportunity in terms of positioning in the international area. The Asian country has been able to establish itself as a responsible geopolitical player and advocate for the preservation of globalization as an established status quo.
Li Qiang stated that China, as a responsible major country, will firmly stand on the right side of history and the side of justice. He also noted that in the wind and waves of the times, an Asian country should be righteous and walk the right path.
In recent years, foreign companies have viewed the prospects of doing business in China against the backdrop of increasing geopolitical tensions through the prism of various concerns. Another factor contributing to the intensification of the mentioned concerns was the fact that the authorities of the Asian country have detained or questioned employees from a handy of overseas firms. This happened as Xi Jinping began to pay more and more attention to national security issues.
At the same time, governments around the world are showing concern about the sheer scale of Chinese exports, especially in areas such as electric vehicles and green technologies. In the context of the relevant rhetoric, attention is paid to the fact that government subsidies provide China’s companies with an unfair advantage against domestic production.
As we have reported earlier, China’s Economy Demonstrates Positive Results.
