Chinese Premier Li Qiang on Tuesday called on countries around the world to be more broad-minded toward the development issue, safeguard open market environment, and avoid engaging in trade protectionism under the guise of “promoting green and environmentally-friendly development.”
Li made the remarks when addressing the opening plenary of the 15th Annual Meeting of the New Champions, also known as the Summer Davos, in China’s coastal city of Dalian, Northeast China’s Liaoning Province. He also noted that China has unique comparative advantages to foster new industries, including ultra-large market with a population of over 1.4 billion, complete industrial system, abundant human resources, diverse application scenarios, and consumers’ high acceptance of new technologies.
Premier Li’s remarks resonated across the dignitaries, delegates and entrepreneurs participating in the forum. They called for collaboration and slammed trade protectionism, at a time when global challenges such as climate change and food and energy security are increasing, coupled with a complex international situation and weak global economic recovery. It also came amid rising tensions between China and the EU as the latter provokes a bruising trade row by deciding to hike tariffs on imports of Chinese electric vehicles (EVs) following the footsteps of the US.
Participants at the forum also highlighted China’s leading role in boosting the world economy and technological innovation including artificial intelligence (AI), as well as the country’s contribution to the global green transition. The forum again sent out the signal that China is willing to open its market wider and share its development benefits with the rest of the world, they noted.
In his speech, Li said that if countries only think about maximizing their own interests without considering that of others, and even turn back the wheel of history by decoupling and cutting off industrial and supply chains with the “small yard and high fence” policy, it will only raise the cost of global economic operations, sever economic ties between regions and intensify contradictions and disputes.
Li called on all countries and regions to work closely together, oppose bloc confrontation and decoupling, maintain the stability and unimpeded flow of industrial and supply chains, and promote trade and investment liberalization and facilitation.
Voices for cooperation
After the opening ceremony, a number of participants from business, government, civil society, international organizations and academia emphasized the importance of exchanges and communication, noting that Li’s remarks boost confidence in the recovery of global economy and the stability of global industrial and supply chains, especially when the world economy lacks sufficient growth momentum due to phased factors including the shock from the COVID-19 pandemic, high inflation and worsening debt issues.
“Premier Li’s speech provides a good insight into understanding the global leadership’s perspective on the economy. I think working together is important than just working solo. And China is ambitious to work together with the rest of the world to collaborate in the world economy, and the country will also continue to be essential for the prosperity of everyone,” Said AI Shanfari, from Oman Tourism Development Co SAOC, told the Global Times on Tuesday on the sidelines of the forum.
“What is important in a forum like this is that there is communication between China and the rest of the world. It’s more important now because of some current frictions, and I think we need to have a better understanding of the motivation of the two parties,” Dominique V. Turpin from China Europe International Business School said, noting that mutual respect is also of great importance.
Fair competition should be allowed if the world is going to advance climate change, Hani Abdulhadi, managing director of Lamar Holding, a company specializes in developing and operating projects across the Saudi energy market, told the Global Times on Tuesday.
As a strong advocator for international cooperation, Abdulhadi said that excessive protection for businesses can stifle innovation. Instead of erecting barriers, the US and the EU should focus more on their own innovation and invest more in the electric vehicle sector to enhance their competitiveness, he said.
China’s commitment
At the opening ceremony, Premier Li said that China is confident in achieving the annual economic growth target of around 5 percent, noting that the rapid rise of China’s new industries has been in line with the global trend of technological revolution and green development.
Li said that the Chinese market is an open and massive market. In the Chinese market, multinational corporations and local enterprises compete and collaborate on a level playing field, becoming key drivers in the creation and growth of emerging industries.
“China is exerting efforts in building a market-oriented, law-based and internationalized business environment,” Li said, adding that China is also eliminating unreasonable regulations that restrict market access and fair competition.
When he met with foreign business representatives during a symposium of the forum on Tuesday afternoon, Li said the sustained rebound and long-term improvement, as well as the transformation, upgrading and profound changes in the Chinese economy, are sure to provide new and broad space for the growth of enterprises from all countries. We hope that entrepreneurs will firmly support economic globalization and free trade, he noted.
In a world that is increasingly influenced by protectionism, nationalism and growing isolation, such an exchange cannot be valued highly enough. After all, the fact that Volkswagen can celebrate 40 years in China this year is not least due to the opening of the Chinese market, Ralf Brandstätter, CEO Volkswagen Group China, said in a note the company sent to the Global Times on Tuesday.
“Li’s speech reassures us that China is staying open to the world, and that it is trying to have a level playing field for all the participants in the economy. Tech innovation is really at the core of finding solutions to our sustainability challenges, and it is also creating its own economy,” Benoit Boulet, associate vice-president of Research and Innovation at McGill University in Canada, told the Global Times on the sidelines of the forum on Tuesday.
For instance, renewable energy and AI will basically lead us into the future and make sure that we have a sustainable future that is more equitable for all, he noted.
Because of China’s development in these domains and its international cooperation, I think we will see some very fast growth in many of these areas and some very quick transformations, said Katherine Daniell, interim director of the School of Cybernetics College of Engineering, Computing and Cybernetics based in Australia.
China made a good start to the year, recording a 5.3 percent economic growth in the first quarter. In May, the country maintained its rebounding and improving trend, with industrial output rising 5.6 percent year-on-year.
Anne Tse, CEO of PepsiCo Greater China and Chief Consumer Officer of Pepsico APAC, told the Global Times on Tuesday at the forum that China’s consumption market still has broad room for further expansion based on its large population and consumer goods categories.
About two weeks ago, PepsiCo began construction of a new foods greenfield plant in Xi’an, Northwest China’s Shaanxi Province, with the total investment reaching 1.3 billion yuan ($178.9 million). It is the company’s tenth plant of its kind in the Greater China region, underscoring PepsiCo’s long-term confidence in the China market.
Many international institutions have raised their projections of China’s economic growth this year. Barclays on Monday raised China’s GDP growth forecast for 2024 from the previous 4.4 percent to 5 percent, following the release of better-than-expected GDP figures in the first quarter.
Given the size of the Chinese economy, its growth tends to have a significant impact on overall growth in the region as a whole, Barclays said. The upward revision of China’s economic growth forecast led it to raise projections on emerging Asia’s GDP growth to 5.2 percent in 2024, up 0.4 percentage points from March’s 4.8 percent forecast.
The IMF also raised its forecast for the country’s economic growth in 2024 to 5 percent from the April projection of 4.6 percent. According to the IMF’s estimation, every 1 percentage point increase in China’s GDP will drive a 0.3 percentage point increase in the economic growth of other countries.
The Davos forum is taking place amid a whirlwind of diplomatic events, including ongoing visits to China by President of Poland Andrzej Duda and Prime Minister of Vietnam Pham Minh Chinh, as well as Premier Li’s just concluded trips to New Zealand, Australia and Malaysia, with agreements reached on deepening cooperation in multiple sectors.
As the Chinese market continues to open up, foreign capital can more easily enter and participate in China’s economic development, Wang Peng, an associate researcher at the Beijing Academy of Social Sciences, told the Global Times on Tuesday, noting that this will not only bring more capital and technology into China, but will also provide new growth points for the global economy.
The Summer Davos, featuring the theme “Next Frontiers for Growth,” runs from June 25 to 27.
Global Times
