China’s Vice Premier He Lifeng has stepped up his country’s economic performance efforts by highlighting the prospect of wider access to China’s domestic market as a way to reduce global trade imbalances.
Speaking at the World Economic Forum (WEF) in Davos on Tuesday, He stressed that China is working to allay international concerns about the spillover of exports from the world’s largest manufacturing economy.
Despite running a trade surplus of around $1.2 trillion last year, China has positioned itself as a trading partner, not a competitor, to other countries.
China has also expressed its desire to develop not only as the world’s factory, but also as a global consumer market, in line with efforts to open up the economy more evenly.
CHINA SEEMS TO SUPPORT FREE TRADE AND MULTILATERALISM
Beijing’s approach is seen as a contrast to the stance of the United States under President Donald Trump, which has previously issued new tariff threats against several trading partners over geopolitical and trade issues.
At Davos, China reiterated its support for international cooperation, free trade and multilateralism, stressing that China's economic development brings opportunities to the global economy, not threats.
He was one of China's key figures in trade talks with the US last year to ease tensions over the tariff war. The talks led to a trade truce in October after five rounds of talks between the two countries.
As part of the deal, China agreed to increase purchases of US soybeans by a target of around 25 million tonnes next year. At the same time, China's exports of rare earth magnets have remained stable with a high fulfillment rate, reducing another major sticking point in the bilateral trade relationship.
While the interim agreement has eased tensions between the world's two largest economies, US actions against countries with close ties to China, including Venezuela and Iran, have the potential to test the stability of the truce.
So far, however, negotiations remain ongoing. Chinese President Xi Jinping and US President Donald Trump are scheduled to hold several meetings this year, with a summit in April expected to strengthen bilateral dialogue.
At the same time, the US signaled that its competitive policy towards China would continue. China, on the other hand, called on both countries to seize opportunities for mutually beneficial cooperation, particularly in trade, while highlighting ongoing challenges related to access to foreign technology and goods.
