Chinese President Xi Jinping, cautioned against escalating trade tensions with the United States, emphasizing that trade and technology wars yield “no winners.”
His comments, made on Tuesday during a meeting with leaders of multilateral financial institutions in Beijing, reflect China’s commitment to stabilizing relations with the US while achieving its growth targets.
“Tariff wars, trade wars, and technology wars go against historical trends and economic rules, and there will be no winners,” Xi stated, according to state broadcaster CCTV.
He further expressed China’s willingness to maintain dialogue with the US, expand cooperation, and manage differences to ensure stable and sustainable bilateral relations.
Despite economic headwinds, Xi expressed “full confidence” in meeting China’s 2024 growth target of approximately 5 percent.
Challenges include sluggish domestic consumption, high unemployment, and a prolonged property sector crisis.
Xi’s remarks coincided with the release of trade data showing slower-than-expected export growth and a continued decline in imports, underscoring the need for robust policy support.
Exports in November grew by 6.7 percent year-on-year, reaching $312.3 billion, a deceleration from the 12.7 percent jump in October.
Meanwhile, imports fell 3.9 percent, highlighting weak domestic demand.
Analysts attribute the export surge in part to foreign buyers accelerating purchases ahead of anticipated higher tariffs under returning US President Donald Trump, who has pledged to intensify trade measures against China.
Trump’s renewed presidency, set to begin in January, raises the prospect of heightened trade disputes.
During his first term, he initiated a protracted trade war, citing allegations of intellectual property theft and unfair practices.
Analysts predict that fear of additional tariffs could prompt short-term export growth but warn of longer-term challenges if new trade barriers are imposed.
China’s Politburo, the nation’s top decision-making body, recently called for “vigorous” support for consumption and easing monetary policy to stimulate growth in 2025.
Economists anticipate further announcements from an upcoming economic policy meeting, which could provide clarity on fiscal strategies to bolster domestic demand and stabilize the economy.
The meeting also marked a broader call for reforms and measures to enhance resilience in the face of external and internal economic pressures.
Zhang Zhiwei, an economist at Pinpoint Asset Management, noted that fiscal policy details would be critical in driving economic recovery.
With global trade dynamics in flux, Xi’s appeal for constructive engagement and his emphasis on China’s resilience underscore the delicate balance between addressing domestic economic priorities and navigating complex international relationships.
AFP
