Excerpt: Premier Li Qiang called on global business leaders to resist protectionism and uphold globalization at a Beijing forum, as concerns over escalating US-China trade tensions grow.
Beijing – China has voiced its readiness for “possible unexpected shocks” and implored global business leaders to “resist protectionism” amid rising trade tensions with the United States. The appeal came from Premier Li Qiang, addressing a gathering of top executives in Beijing.
CEOs from major companies like Apple, FedEx, and Pfizer convened in the Chinese capital for the two-day China Development Forum. This event occurred against the backdrop of increased trade pressure from US President Donald Trump, aimed at rectifying what he perceives as an unfair trade relationship with China.
Li warned that “decoupling and breaking supply chains would only deepen crises” and reaffirmed China’s commitment to expanding market access for foreign investors across various sectors. Speaking at the forum’s opening, he stated, “If the world returns to the law of the jungle, it will be a step backward in history and a tragedy for humanity.”
“We have prepared for possible unexpected shocks, which, of course, mainly come from external sources,” Li added. “Where necessary, the Chinese government will introduce new policies to ensure the smooth operation of the Chinese economy.”
The message from Li carries significant weight as China seeks to project economic confidence and reverse declining foreign investment amidst a slowing economy. This effort coincides with growing anticipation among Beijing and the US-China business community for potential impacts from Trump’s tariffs, which could intensify next month.
The China Development Forum has historically served as a vital platform for dialogue between Chinese officials and foreign business leaders. This year, the forum holds heightened importance, providing an avenue for informal US-China diplomacy during a period of uncertainty.
On the forum’s sidelines, Li met with US Senator Steve Daines, a Trump ally. Daines characterized the conversation as “a first step” towards a potential meeting between Trump and Chinese President Xi Jinping, according to the Wall Street Journal.
Executives from Qualcomm, Pfizer, FedEx, and Boeing also participated in the meeting, where Li emphasized that the US and China “share extensive common interests and a broad space of cooperation,” advocating for “win-win cooperation.”
Trump has consistently expressed his desire to reach an agreement with China and Xi. Recently, he indicated the possibility of talks between US trade officials and their Chinese counterparts this week.
Since taking office, Trump has implemented a 20% additional tariff on all Chinese imports to the US, in addition to existing tariffs on hundreds of billions of dollars worth of goods. China has responded with retaliatory duties on US imports, including agricultural and energy products, along with new export controls on raw materials.
The White House is also expected to announce reciprocal duties on multiple countries shortly, as part of the administration’s efforts to bring manufacturing back to the US and rebalance trade relationships.
Uncertainty surrounding trade remains a central concern.
The reshaping of America’s trading relationship with China and the anticipated impacts on global trade were recurring themes at the forum.
Jon Abrahamsson Ring, CEO of Inter IKEA Group, emphasized the company’s commitment to open, rule-based trade during an interview with CNN on the forum’s sidelines.
“We are very firm believers in an open, rule-based trade that works,” Ring said. “We believe that trade is something very positive and actually enables scale, enables that we can take advantage of comparable advantages globally.” He also stated that “trade will be a key enabler for some of these important transformations that need to be done now in sustainability, affordability, etc.”
Ring noted that most IKEA goods sold in Europe and Asia are produced within those continents, and a similar approach to the US market is under development.