Xi Seizes Role as Global Defender of Free Trade Against Trump
(Bloomberg) — As Donald Trump threatens to impose tariffs on the entire world, Xi Jinping is once again wasting no time in positioning himself as the premier defender of the international trading system.
China’s leader warned on Friday that the global economy was fracturing as protectionism spreads, leading to “severe challenges.” The world, he declared, had “entered a new period of turbulence and change.”
“Dividing an interdependent world is going back in history,” Xi said in a speech at the APEC CEO Summit in Peru read on stage by one of his ministers.
For Xi, it’s a role he played when Trump first rose to power in 2017. Back then, China’s head of state urged global business elites at the World Economic Forum in Davos, Switzerland, to reject trade wars and protectionism, saying it would cause “injury and loss to both sides.”
In the eight years since, Trump imposed punitive tariffs on China that were largely kept in place by the Biden administration, which also stepped up efforts to deny Beijing advanced technology. As he prepares to take office again in January, Trump is now threatening to impose 60% tariffs on China — and, just as crucially, 10% to 20% on the rest of the world.
That universal tariff threat is giving Xi a fresh opening to improve ties with a range of governments bracing for tough negotiations with Trump. On Friday, Xi met one-on-one with the leaders of Thailand, Singapore, Chile, South Korea, Japan and New Zealand — all important US allies and security partners in the Asia-Pacific.
“We’re very invested in making sure we have a rules-based system, not a power-based system,” New Zealand Prime Minister Christopher Luxon said at the APEC CEO Summit. “There has been a shift from rules to power, and that’s something we advocate very strongly for: That irrespective of your size, we want countries to be able to navigate their way in the world through the international rules-based order.”
The fact that it’s unclear whether he’s referring to China or the US, long known as the leader of the free world and champion of globalization, shows just how much global geopolitics has shifted in the past two weeks. The Biden administration has frequently blasted China for failing to follow a rules-based order, with Secretary of State Antony Blinken often leading the charge.
In a speech wrapping up the APEC CEO Summit on Friday, however, Blinken didn’t talk about the rules-based order at all in reeling off a range of accomplishments over the past four years — emblematic of an administration with one foot out the door.
While Xi was busy with meetings — and plans to meet with Biden one final time on Saturday — the US president kept a light schedule. In addition to a trilateral meeting with Japanese Prime Minister Shigeru Ishiba and South Korean President Yoon Suk Yeol, he also met Peruvian leader Dina Boluarte, who inaugurated a $1.3 billion port with Xi the night before that could transform South American trade with Asia.
A senior administration official, who asked not to be identified, said the port came up in the conversation between the leaders, with Biden cautioning that it’s important for countries to maintain high standards with partners including China.
Still, Boluarte was all smiles while hosting Xi in an elaborate ceremony at the Government Palace in Lima featuring a video link to Chancay port some 60 kilometers (37 miles) to the north. Xi said the facility will establish a direct line from Chancay to Shanghai, reduce shipping times and lower logistics costs.
Other speakers affiliated with China featured heavily at the APEC CEO Summit on Friday.
‘Detrimental for Everyone’
Shou Chew, the chief executive officer of TikTok — whose parent company ByteDance Ltd. is based in Beijing — called the app an “industry leader when it comes to online safety and data security.” Although the US passed a law this year that would ban the app if its Chinese owner doesn’t sell to an American buyer, Trump has spoken favorably about the company. What he’ll eventually do is unclear.
A former Chinese Commerce Ministry official, Ren Hongbin, called on participants to “stand up to protectionism and unilateralism.”
“There is the rhetoric of the decoupling and derisking,” said Ren, now chairman of the China Council for the Promotion of International Trade. “The artificial severance of the global supply chain is detrimental for everyone.”
Some of the most frank comments about dealing with Trump came from Prime Minister Justin Trudeau, who spoke about how his government “rolled up our sleeves and did the hard work” to ensure a trade deal between Canada, Mexico and the US was updated to benefit everyone. He said political leaders needed to do a better job ensuring that trade benefits average citizens.
“It wasn’t easy,” Trudeau said of the first round of trade discussions with Trump. “And nothing is going to be easy this time.”
–With assistance from Lauren Dezenski.
©2024 Bloomberg L.P.
