Home>Top Issues

China’s Xi Pledges Open Trade Despite Trump Protectionism

Monday,Dec 12, 2016

From: Bloomberg


Xi Jinping speaks in Lima on Nov. 19.

 Photographer: Guillermo Gutierrez/Bloomberg

China pledges to boost global trade and cooperation by opening up further and giving greater access to foreign investors, President Xi Jinping said on Saturday.

China wants to create a level playing field for foreign and local companies so that they can share in the Asian country’s growth, Xi said in a speech at the Asia-Pacific Economic Cooperation meeting in Lima.

Xi called on APEC members to reject attempts to slow down cooperation between nations in a pointed reference to U.S. President-elect Donald Trump, who won an election this month by saying he will protect his country from free trade agreements that he says are destroying American jobs. A protectionist mood in the U.S. spurred by Trump’s victory means the Trans-Pacific Partnership, which doesn’t include China, is increasingly unlikely to be ratified by Congress.

“We should deepen and expand cooperation in our region,” Xi said. “Any attempt to undercut or exclude each other must be rejected.”

Xi said China is working on an early conclusion in negotiations for the Regional Comprehensive Economic Partnership, an Asia-wide trade pact that it has championed in recent years. That deal has returned to focus given the fading fortunes of the TPP that would have taken in about 40 percent of the global economy.

Moving ahead on the RCEP would give the world’s second biggest economy greater sway and a bigger say in creating trade rules. It would boost China’s geopolitical clout in a region where it has territorial disputes with neighbors including Japan, Vietnam, Malaysia and the Philippines and is looking to displace decades of U.S. strategic dominance.

“It’s a very good opportunity for China to push RCEP. The uncertain future of the TPP gives momentum to the RCEP, which is an easier-to-do alternative,” said He Weiwen, deputy director of the Beijing-based Center For China and Globalization (CCG) and a former business attache in the Chinese consulates of New York and San Francisco. “China has played a big role in pressing ahead on regional economic integration and globalization. It serves China’s strategic interests”

Growth challenges

Xi said that China will import $8 trillion of goods over the next five years while it expects to receive $600 billion in foreign investment and invest $750 billion overseas. China is overcoming challenges to growth through a series of reforms and economic production for 2016 is within range, Xi said. The economy grew 6.7 percent in the first nine months of the year, he said.

“Reforms will make China’s investment climate more favorable and transparent,” Xi said. “This will allow foreign companies to share in China’s growth opportunities. We will also encourage more Chinese companies to go global.”

Since it became an APEC member in 1991, China has sought to increase its clout within the group, with a focus on trade. It has been the world’s largest exporter since 2010, even though last year its domestic economy grew at the slowest pace in 25 years amid a decline in global demand and domestic restructuring.

Xi’s week-long trip to Latin America, with stops in Ecuador, Peru and Chile, is his third to the region since he became president. Trade volume between China and Latin America has risen more than twenty-fold in the past decade, reaching $236.5 billion in 2015, according to Xinhua. China is the second largest trading partner and third largest source of investment for Latin America, while the region is China’s seventh-largest trading partner.

The RCEP, which would be the first pan-Asian trade deal ever, was launched by the Association of Southeast Asian Nations in 2012 and has gone through 15 rounds of talks. Negotiators are looking to accommodate India’s fears of a widening trade deficit with China, as well Japan’s reluctance to open its agricultural sector.

The 16 countries involved in RCEP include the 10 members of Asean plus China, Japan, India, South Korea, Australia and New Zealand. They represent about 30 percent of global gross domestic product and almost half the world’s population. Some had already signed up for the TPP. As for the five TPP signatories in the Americas, they would be left out.(By John Quigley and Ting Shi)

From Bloomberg, Nov. 19, 2016


  • Wang Huiyao: China could help make America great again

    To make America great again, Trump has promised to bring manufacturing companies back to US, and increase infrastructure investment to create more jobs for unemployed Americans.

  • IPR protection boosts internet economy

    While raising doubts over China’s intellectual property laws and practices, the United States should not ignore the progress Beijing has made in those areas.

  • China among the team of net capital exporters in global market

    In 2015, for the first time, the amount of Chinese foreign direct investment, $145 billion, surpassed the amount of investment China received from abroad, and ranked in second place after the United States.

  • China’s Sociopolitical landscape | CGTN

    The new CPC leadership met the press earlier, General Secretary of the Communist Party of China Central Committe, Xi Jinping introduced the members of new leadship and run through the future prospects.

  • Internationalizing education

    “The new policy will undoubtedly eliminate obstacles for international students studying in China and reduce the loss of foreign talent,” Wang Huiyao, director of Center for China and Globalization(CCG), told China News Service, which reported that, based on UN and other census statistics, China’s expat population is only about 0.04 percent.