(Bloomberg) – While Donald Trump threatens to impose tariffs on the world, Xi Jinping is once again wasting no time in positioning himself as the main defender of the international trading system.
The Chinese leader warned on Friday (15) that the global economy was fragmenting as protectionism spread, leading to “severe challenges”. The world, he declared, had “entered a new period of turmoil and change.”
“To divide an interdependent world is to go back in history,” Xi said in a speech at the APEC CEO Summit in Peru, read on stage by one of his ministers.
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He repeated this theme in a speech this Saturday (16) to leaders of the 21 APEC member economies, including US President Joe Biden.
End of protectionism
“We must tear down the walls that impede the flow of trade, investment, technology and services, maintain stable industrial and supply chains, and promote economic circulation in the region and the world,” Xi said.
For Xi, it’s a role he played when Trump first came to power in 2017. Back then, China’s head of state called on global business elites at the World Economic Forum in Davos, Switzerland, to reject trade wars and protectionism, saying it would cause “damage and losses for both sides.”
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Over the next eight years, Trump imposed punitive tariffs on China that were largely maintained by the Biden administration, which also stepped up efforts to deny advanced technology to Beijing. As he prepares to take office again in January, Trump is now threatening to impose tariffs of 60% on China — and, equally, 10% to 20% on the rest of the world.
This universal tariff threat is giving Xi a new opening to improve ties with a range of governments bracing for difficult negotiations with Trump. On Friday, Xi personally met with the leaders of Thailand, Singapore, Chile, South Korea, Japan and New Zealand — all key U.S. allies and security partners in the Asia-Pacific.
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