#China: Xi Jinping defends free trade #Davos

China calls for international economic co-operation in Davos today (17 January). President Xi Jinping (pictured) says that today’s challenges require greater multilateralism and enhanced global co-operation.

In his first speech to the World Economic Forum in Davos, Xi said that protectionism was like “like locking oneself in a dark room: while wind and rain may be kept outside so are light and air”. In making the case for free trade, he argued that no-one wins trade wars.

China's economy has slowed down, but still enjoys one of the world’s highest growth rates at an estimate 6.7% in 2017, despite the sluggish global conditions.

At a time when other countries appear to be pulling up the drawbridge, Xi will call for greater multilateralism and an enhanced global co-operation.

Criticism

The Davos speech comes in the face of much criticism. Europe is taking a more aggressive stance on steel overcapacity and is adopting more effective trade defence instruments.

In President-elect Trump’s seven point plan to rebuild the American economy three points concern China. Trump accuses China of being a currency manipulator, says that he will call for more cases against China’s subsidies and will stop the theft of American trade secrets.

In his Davos speech Jinping said that China has no intention to boost its trade development by devaluing the Renminbi, still less by launching a currency war. The Chinese President paraphrased Lincoln’s Gettysburg address, saying: “Development is of the people, by the people and for the people.”

Climate change

On the Paris climate deal, Xi urged signatories to stick to the "hard-won agreement". He emphasized that all signatories should stick to it rather than walking away.

Multilateralism

During Xi’s visit to Switzerland is also outlining China’s commitment to the strengthening of international bodies such as the UN and the World Health Organization. He will meet the new U.N. Secretary-General Antonio Guterres, and sign agreements on healthcare cooperation under the framework of the Belt and Road initiative.

The Chinese president is building on the themes of the Hangzhou G20 summit called last September. He called for sustainable growth, innovation, protection of the environment, the fight against tax evasion and corruption and preventive measures against potential crises.

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