By The Straits Times | Created at 2024-11-15 23:27:15 | Updated at 2024-11-16 01:28:56
2 hours ago
LIMA - With Donald Trump’s imminent return to the US presidency looming over the Asia-Pacific Economic Cooperation (Apec) summit in Lima, Chinese President Xi Jinping said on Nov 15 that unilateralism and protectionism needed to be rejected in favour of economic globalisation.
Mr Xi’s critique of protectionism at Apec offers a preview of how China will seek to position itself once Trump takes office in January.
Trump has pledged to impose tariffs on Chinese imports in excess of 60 per cent but Beijing and Chinese companies are hoping that his protectionist policies will also irk US allies in Europe and Asia - giving China an opening to increase its global influence and improve trade ties.
In a speech read out to business executives by Chinese commerce minister Wang Wentao on Nov 15 at the Apec CEO Summit, Mr Xi said that economic globalisation was facing “countercurrents”, without specifying any particular country or leader.
“The world has entered a new period of turmoil and change, unilateralism and protectionism are spreading, the fragmentation of the world economy has intensified,” Mr Xi said.
“Hindering economic cooperation under various pretexts, insisting on isolating the interdependent world, is reversing the course of history,” he added.
Mr Xi listed a series of recent measures the Chinese government has taken to attract foreign investment, including increasing the number of Chinese industries that can receive foreign investment, as well as unilateral visa exemptions to foreigners visiting China.
“China will implement more independent and unilateral opening-up policies, expand the network of high-standard free trade zones facing the world, and open even further the door into China,” said the Chinese leader, who is due to meet US President Joe Biden on Nov 16 in Peru.
However, some analysts said that China’s pitch as an alternative or counterbalance to a protectionist Trump-led United States has lost its shine compared to 2016, when Trump was first elected.
Dr Chong Ja Ian, a political scientist at National University of Singapore, said that unlike 2016, there were now widespread concerns in the international community about how Chinese state subsidies to industrial sectors and their resulting overcapacity negatively affect other countries’ economies.
“China is as protectionist as the US might be, its economy is far less open today than it used to be,” Dr Chong said.
Business pitch
Mr Xi was accompanied by hundreds of Chinese business executives on his trip to Peru, as Beijing seeks to significantly expand trade ties with resource-rich Latin America.
Several business leaders at the Apec CEO Summit, running alongside the main event, said the Asian presence this year outweighed that of the US, Canada and Australia, with the Mexicans notably absent.
One Peruvian businessman quipped how the Chinese “vastly outnumbered” everyone else, motivated by the official visit of President Xi. “The only Americans we saw were those sponsoring like Google,” he said.
Several Chinese executives Reuters spoke to said the state visit and the inauguration of a Beijing-backed megaport project were a big incentive: “Most businesses like mine in logistics came because the President is here,” said one businessman who had travelled from Shanghai to Lima.
“We get a lot of second hand information, being here in Peru makes a difference,” he added.
Preliminary plans to build an e-commerce distribution centre in Chancay to house merchandise from China were discussed on the sidelines of the Apec CEO Summit on Nov 15, two Peruvian delegates said.
The proposal would transport goods from over 75,000 shops in southern China’s Yiwu, an export hub, to the Pacific port that is expected increase trade between Asia and South America. REUTERS
