China’s Premier talks up free trade, vows cooperation

BEIJING — China supports globalisation and free trade, Chinese Premier Li Keqiang said yesterday, while pledging that Beijing would quicken the pace of opening up its economy at a time of rising protectionism.

During his annual news conference at the end of the yearly meeting of China’s Parliament, Mr Li said that although globalisation has encountered some setbacks, China has always advocated trade liberalisation.

“Actually, globalisation benefits each country, even though some problems arise in the process, such as in the sector of distribution. We need to tackle these problems rather than reject globalisation,” he said.

“China is willing to cooperate with other countries to enhance the global governance system. Globalisation is inseparable from the development of world peace. The closed door and beggar-thy-neighbour policies cannot resolve problems.”

The Premier said promoting global trade liberalisation requires the joint effort of every country.

“We always assume an open attitude to regional trade arrangements, including those established and those that are under discussion ... We will participate in and promote whatever facilitates trade liberalisation,” he said. “We Chinese understand that we have to seize with an open attitude the opportunities of globalisation and not miss them, no matter what challenges we face.”

Mr Li added that “as long as China is involved and has the conditions to participate (in regional free trade arrangements), we will assume an open attitude to promote it”. He said China “won’t meddle in others’ affairs”. “We won’t go beyond China’s regional scope to do things we shouldn’t.”

He added that China would “continue to be a strong driving force in the face of a sluggish global economy recovery”.

American President Donald Trump had repeatedly accused China of carrying out trade policies that have led to massive American job losses and threatened to slap tariffs of up to 45 per cent on Beijing’s goods.

In a January speech at the World Economic Forum in Davos, Chinese President Xi Jinping cautioned against protectionism amid worries that the rising tide of anti-globalisation in the West could be further entrenched.

He had said the world must “remain committed to promoting free trade and investment through opening up”. The President also appealed to world leaders to “say no to protectionism”.

Foreign firms have complained in recent years about a worsening business environment in China, claiming government policies favour local firms, though Mr Li said yesterday that China will quicken the pace of opening up its economy to foreign investors.

The premier noted that last year, China was the largest recipient of foreign direct investment among all developing countries, with US$126 billion (S$178 billion). He added that according to the evaluation on business environment in China made by the World Bank, China jumped 18 places last year compared with 2013.

“China’s priority is to realise its own development, but closing doors cannot realise that. We will continue to step up opening-up, which is a gradual process,” he said.

“Wider and deeper opening-up (of the Chinese economy) will bring about friction, but it will ease ... We will ... attract more investment to share development opportunities with the whole world.” AGENCIES