Xi Argues For Chinese Economic Leadership

 

Chinese President Xi Jinping made a case for Chinese leadership in a shifting global economy at the World Economic Forum in Davos on January 17.

As the first Chinese leader to speak at the Forum, Xi countered Donald Trump’s rhetoric of “America First” and the rise of a brand of populist nationalism that advocates economic protectionism in many western democracies. China, which continues to restrict trade and foreign investment harshly, does not seem to be an obvious proponent of free markets. However, with Trump pushing for an insular approach in the United States and Europe plagued by its own crises from Brexit to the overflow of refugees, China seeks to assume the role of a global economic leader.

Xi specifically responded to Trump, who has promised import tariffs on Chinese goods and accused China of employing unfair trade practices such as devaluing its currency for competitive advantage. At a briefing in Beijing on Xi’s Davos visit, Vice Foreign Minister Baodong Li said that “trade protectionism will lead to isolation and is in the interest of no one.” He also reiterated Xi’s case for Chinese leadership by saying that Beijing will "steer economic globalization toward greater inclusiveness.”

In addition to discussing such accusations, Xi also commented on Trump’s new responsibility as U.S. President, urging him to uphold the year-old Paris Climate Agreement that codified an international commitment to reducing carbon emissions. Trump has opposed the agreement and declared that, under his presidency, the U.S. would remove itself from the convention.

Former Swedish Prime Minister Carl Bildt, reacting to Xi's speech on Twitter, said, "There is a vacuum when it comes to global economic leadership, and Xi Jinping is clearly aiming to fill it. With some success."

“It shows China is not underestimating the danger of a trade war breaking out,” said He Weiwen, deputy director of the Beijing-based Center for China and Globalization and a former business attaché to The Japan Times. “China used to be a mere supporter of the U.S.-led global economic order. Now, as the incoming U.S. presidency shows signs of retreating, China is stepping up to take a leading role.”