‘No one a winner’ in a trade war, says Chinese president Xi Jinping

Chinese president Xi Jinping offered a vigorous defence of free trade yesterday at the World Economic Forum in Davos in a speech that underscored Beijing’s desire to play a greater global role as the US turns inward.

In the first appearance by a Chinese leader at the annual meeting of political leaders, CEOs, and bankers in the Swiss Alps, Xi also cautioned other countries against blindly pursuing their national interests, in an apparent reference to the “America first” policies of Donald Trump.

Property mogul and ex-reality TV star Mr Trump, who will be inaugurated as US president on Friday, campaigned on a promise to confront China more aggressively on trade.

He has vowed to renegotiate or ditch multilateral trade agreements and protect US industries from foreign competition by levying new tariffs on goods from abroad.

Mr Xi likened protectionism to “locking oneself in a dark room” in the hopes of protecting oneself from danger, but in so doing, cutting off all “light and air”.

“No one will emerge as a winner in a trade war,” Mr Xi said in a nearly hour-long speech in a large conference hall as US vice president Joe Biden looked on.

He said Beijing would not boost its trade competitiveness by devaluing its currency, something Mr Trump has repeatedly said China has done in the past, and urged signatories of a landmark climate deal in Paris last year to stick to the agreement. Mr Trump has criticised the deal.

As Mr Trump vows to focus on American interests, Europe is preoccupied with its own troubles, from Brexit and militant attacks to the string of elections this year in which anti-globalisation populists could score gains.

Reuters