Xi warns against trade war in defence of globalisation

He says, 'no one is a winner in a trade war'

Chinese President Xi Jinping cautioned against protectionism as he pushed back against criticism of globalisation by Donald Trump and other Western populists.

“Protectionism is like locking yourself in a dark room, which would seem to escape wind and rain, but also block out the sunshine,” Xi told the World Economic Forum on Tuesday, the first Chinese head of state to address the annual gathering in the Alpine resort town of Davos. “No one is a winner in a trade war.”

Xi used his speech to support a global economic order that has helped fuel China’s almost four-decade economic boom. While a surge in protectionist sentiment threatens to slow the engine of China’s growth, it also offers Xi a chance to advance his goal of shaping global economic systems. In his speech he did not refer to Trump by name. The Chinese president called on the world’s business and political elite to address the problems of globalisation, without turning away from economic trends that have fueled decades of growth. Leaders should address the excesses of growth, such as growing wealth gaps, while embracing new industries and innovation, he said. “There is no point in blaming economic globalisation for the world’s problems because that is simply not the case,” Xi said “And that will not help to solve the problems.” “The history of mankind has shown us that problems are not to be feared,” Xi said. “What should concern us is the refusal to face up to the problems.”

The world’s second-largest economy represents a bastion of consistency to Davos attendees facing a string of European elections — in France, the Netherlands, Germany and possibly Italy — after the twin shocks of Trump’s victory and the UK’s Brexit vote. Such “extreme weather events” topped the list of most likely risks in the forum’s annual survey this year.

The president pledged to continue to overhaul China’s economic structure. He said he had no intention to devalue his country’s currency to boost competitiveness.

Since taking power in 2012, Xi has shown a desire to raise his profile on the world stage, addressing the United Nations in 2015 and hosting the Group of 20 nations last year. 

He’s touted China’s cooperation with outgoing US President Barack Obama on the Paris climate change deal — one of the multinational accords now questioned by Trump — as evidence of China’s support for sustainable global development.

Bloomberg