Xi assumes role as global free trade advocate against Trump

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(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 leading defender of the international trading system.

China’s leader warned Friday that the global economy was fracturing as protectionism spread, bringing « serious challenges. » The world, he said, had “entered a new period of turbulence and change.”

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“The division of an interdependent world dates back to history,” Xi said in a speech at the APEC CEO summit in Peru, read on stage by one of his ministers.

For Xi, this is a role he played when Trump came to power in 2017. At the time, the Chinese head of state urged global economic elites at the World Economic Forum in Davos, Switzerland, rejected trade wars and protectionism, saying it would lead to « injury and loss on both sides. »

Over the next eight years, Trump imposed punitive tariffs on China that were largely kept in place by the Biden administration, which also stepped up efforts to deprive Beijing of cutting-edge technology. As he prepares to return to office in January, Trump is now threatening to impose 60% tariffs on China – and, just as crucially, 10-20% on the rest of the world.

This universal tariff threat gives Xi a new opening to improve ties with a number 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 U.S. allies and security partners in the Asia-Pacific region.

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« We are very keen to ensure that we have a rules-based system and 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 stand for very strongly: regardless of your size, we want countries to be able to navigate the world through an international order based on rules. »

The fact that it is not clear whether he is referring to China or the United States, long known as the leader of the free world and champions of globalization, shows how much global geopolitics has changed over the of the last two weeks. The Biden administration has often criticized China for failing to adhere to a rules-based order, with Secretary of State Antony Blinken often leading the charge.

However, in a speech closing the APEC CEO summit on Friday, Blinken stopped short of talking about the rules-based order as he cited a series of accomplishments over the past four years – emblematic of an administration with one foot out. .

While Xi has been busy with meetings – and plans to meet with Biden one last time on Saturday – the US president has 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 with Peruvian leader Dina Boluarte, who the day before inaugurated with Xi a $1.3 billion port that could transform South American trade with Asia.

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A senior administration official, who asked not to be identified, said the port came up in the conversation between the leaders, with Biden warning that it was important for countries to maintain high standards with their partners, including China.

Still, Boluarte was all smiles as he welcomed Xi in an elaborate ceremony at Lima’s Government Palace, with a video link to the port of Chancay, about 60 kilometers (37 miles) to the north. Xi said the facility would establish a direct line from Chancay to Shanghai, reduce shipping times and reduce logistics costs.

Other speakers affiliated with China were present at the APEC CEO Summit on Friday.

“Harmful for everyone”

Shou Chew, CEO of TikTok – whose parent company ByteDance Ltd. is based in Beijing – called the app “an industry leader in online safety and data security.” Although the United States passed a law this year that would ban the app if its Chinese owner did not sell to an American buyer, Trump has spoken favorably of the company. What he will ultimately do is unclear.

Ren Hongbin, a former official at China’s Ministry of Commerce, called on participants to « oppose protectionism and unilateralism. »

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“There is the rhetoric of decoupling and risk reduction,” said Ren, now president of the China Council for the Promotion of International Trade. “Artificial disruption of the global supply chain is bad for everyone. »

Some of the most candid comments on relations with Trump came from Prime Minister Justin Trudeau, who explained how his government « rolled up its sleeves and did the hard work » to ensure that a trade deal between Canada, Mexico and the United States is updated for the benefit of Trump. everyone. He said political leaders need to do a better job of ensuring trade benefits average citizens.

“It hasn’t been easy,” Trudeau said of the first round of trade talks with Trump. “And nothing will be easy this time.”

—With help from Lauren Dezenski.

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