China”s Xi warns against trade war ahead of Donald Trump”s inauguration

Chinese President Xi Jinping warned against a new trade war and presented China as a global champion of free commerce Tuesday at the World Economic Forum, where the change in US administration dominates the discussions. "Pursuing protectionism is just like locking oneself in a dark room," Xi said in a keynote speech that opened the […]

Chinese President Xi Jinping warned against a new trade war and presented China as a global champion of free commerce Tuesday at the World Economic Forum, where the change in US administration dominates the discussions.

"Pursuing protectionism is just like locking oneself in a dark room," Xi said in a keynote speech that opened the annual summit of political and business leaders in the Swiss mountain resort of Davos.

"While wind and rain may be kept outside, so are light and air," Xi added.

He did not name the United States or Donald Trump, who will be inaugurated as US president on Friday, but Xi appeared to be reacting to Trump’s opposition to international free trade deals, and to his plans to challenge China in trade matters.

"No-one will emerge as a winner in a trade war," Xi warned.

Among the seven points in Trump’s plan on trade, three deal with China. The Republican president-elect plans to challenge China’s currency policy, file trade disputes at the World Trade Organization (WTO) and take action if Beijing does not stop unfair trade practices.

This would not be a complete shift from the policy of the current administration, which has actively fought against China’s state subsidies to its industries at the WTO.

Senior Trump advisor Anthony Scaramucci tried to calm the nerves of leaders in Davos by saying that the incoming administration would simply seek fairer trade relations with China and other countries.

US trade deals with several countries have led to the loss of US manufacturing jobs and the erosion of the middle class, said Scaramucci, who will serve external liaison chief in Trump’s White House.

"The United States and the new administration does not want to have a trade war," Scaramucci said.

He added, however, that it was up to Beijing "to reach out" to the US and "create symmetry."

Xi acknowledged that his country needs to create better conditions for foreign companies.

He promised to improve the protection of property rights and to make China’s market more transparent and better regulated.

In another veiled reference to Trump, the Chinese leader stressed the importance of the Paris Agreement on curbing climate change.

"All signatories should stick to it instead of walking away from it, as this is a responsibility we must assume for future generations," Xi said to applause from the audience.

Trump has backpedalled on his initial plan to renounce the pact, but he remains worried about its effects on US industries.

In Xi’s speech, he acknowledged that globalization has caused income inequalities and other problems. Countries should come up with ways to spread the benefits of free trade rather than vilifying globalization and retreating from free trade, he said.

"There’s no point in blaming economic globalization for the world’s problems. It will not solve the problems," he said.

Reacting to the rise of populism in the US, in Europe and other regions, the World Economic Forum organizers are holding this year’s meeting under the motto "Responsive and Responsible Leadership."

Until Friday, 3,000 politicians, business chiefs, UN leaders, scholars and activists plan to discuss global issues that can contribute to populism, such as rising inequality and technological developments that result in job losses. (DPA)