President Xi of China has launched a barely concealed attack on Donald Trump, saying that the People’s Republic would be a beacon of free trade and a champion of globalisation.
In a keynote speech at the World Economic Forum’s annual meeting in Davos, the Chinese leader positioned his country as the antidote to Mr Trump’s retreat into isolationism.
It amounted to an escalation in the war of words between Mr Trump and Beijing and suggests that relations are under severe strain even before the new administration takes office.
Without mentioning Mr Trump or the US by name, President Xi criticised those who argued that globalisation had cost jobs in the West and warned: “No one will emerge a winner in a trade war. Countries should perceive their own interests in the broader context and refrain from pursuing their own interests at the expense of others. We should not retreat in the harbour whenever we encounter a storm or we shall never cross to the other shore.”
On the campaign trail, Mr Trump threatened to erect tariffs against Chinese goods in an attempt to revitalise American manufacturing and resurrect jobs. His appointments, which include several Goldman Sachs alumni, suggest that his actions may not go as far as his tough rhetoric, though.
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Mr Trump’s team hit back almost immediately. Speaking at Davos shortly after the Chinese president, Anthony Scaramucci, a former Goldman banker and assistant to the president-elect, said: “The US does not want to have a trade war, we want free and fair trade.”
He claimed that the US had been single-handedly raising global living standards for decades and that it was time to level the playing field.
“If you look at every US trade deal since 1945, they are asymmetrical in favour of the other country. We allowed goods to flow freely into the US but allowed our goods to be embargoed. That process has worked well, it has reduced global conflicts,” he said. “The deleterious effect is that it’s hollowed out American manufacturing and hurt the working class. All we are asking for is symmetry. If China really believes in globalisation, they have to reach towards us.”
China has sent a big delegation to Davos as it looks to position itself as a major player and secure greater influence at global institutions such as the International Monetary Fund and the World Trade Organisation. In that spirit, the speech was carefully crafted to position the Communist Party leader as more of a free marketeer than the future leader of the free world. The solution to globalisation’s problems was not retreat but innovation, he said again and again.
“There is no point blaming globalisation for the world’s problems as that is not the case . . . It is true that globalisation has created new problems. This is not a reason to write off globalisation altogether, rather we should cushion its negative impact and deliver its benefits to all countries and all nations.”
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The president underlined his message by announcing that China would open its mining, infrastructure, services and technology sectors to foreign investment. He also pledged not to start a currency war.
“China has no intention of boosting trade competition by devaluing the renminbi,” he said. “China will keep its doors wide open. We hope that other countries will also keep their doors open to Chinese investors and maintain a level playing field for us.”
In another swipe at Mr Trump, an avowed climate sceptic, President Xi called on leaders to meet their Paris climate change agreements.