China’s top leader, addressing a gathering of business officials in Beijing on Sunday, said China would push forward with “economic globalization” despite “fragmentation.”
Trump said he would pursue a path of “economic globalization” at a meeting of the China Development Forum, which is taking place weeks after he imposed multiple rounds of tariffs on goods imported from the country. US tax hikes and retaliatory protectionist measures have increased the likelihood of global price increases as economic challenges mount worldwide.
Chinese leaders have been trying to steer the volatile economy onto a more stable path since the end of the pandemic, particularly by boosting consumption. As Trump wages a trade war with major U.S. trading partners, including China, Canada and Mexico, by raising tariffs, he is also seeking to emphasize the country’s role as a staunch defender of the multilateral economic system.
Chinese Premier Li Keqiang said, “China will firmly stand on the right side, fairness and justice at a difficult time in history.” Lee’s speech came at the opening of this year’s annual forum, attended by top business leaders, including Apple CEO Tim Cook. “The country will adhere to the right direction of ‘economic globalization,’ practice correct multilateralism, and strive to become a force for stability and certainty,” Li said.
“Today, global economic fragmentation is intensifying, instability and uncertainty are increasing,” he said, referring to the new trade war launched by Trump. Beijing has expressed an open approach to engaging with Trump for trade talks in recent weeks. US Senator Steve Danes met with Chinese Vice Premier He Lifeng, who oversees economic affairs, on Saturday during his visit to Beijing.
Danes will also meet with Lee on Sunday for talks expected to involve the cross-border flow of fentanyl and deadly drug precursor chemicals from China to the United States. Trump has said that Beijing’s failure to stop shipments of chemicals is the reason for the new tariffs on China, which have exacerbated the problem of deadly drugs.
Beijing has said it has taken tough measures against the illegal production and trade of drugs and that Washington must resolve the issue. In his meeting with Danes, he said, “China strongly opposes the politicization, weaponization, and instrumentalization of economic and trade issues.”
The deputy prime minister also said that China is willing to “engage in frank dialogue” with the United States to resolve the issue. He said, “There are many common interests and broad space for cooperation between the two countries.”
Trump has increased shipments of some Chinese goods to the United States by 20 percent since taking office in January. China’s exports hit a record high last year. “The disruption to the global trading system could force Beijing to look for other ways to boost activity,” observers have warned.
Data released on Monday indicated uneven improvement in the first two months of this year. Retail sales grew moderately compared to the previous January-February period, although unemployment reached the highest level recorded in two years. Beijing has said it aims to achieve economic growth of around 5 percent this year, the same as last year and considered ambitious by many economists.
