Chinese Premier Li Qiang warned on Wednesday that global trade tensions are mounting, as he opened the World Economic Forum’s Annual Meeting of the New Champions, often called the “Summer Davos” in Tianjin.
Addressing global business and political leaders, including Singaporean Prime Minister Lawrence Wong, Li painted a stark picture of a world economy under pressure from rising protectionism and shifting geopolitical dynamics.
“The global economy is undergoing profound changes,” Li said, in what appeared to be a veiled reference to sweeping tariffs imposed by former U.S. President Donald Trump.
“Protectionist measures are significantly increasing, and global economic and trade frictions are intensifying.”
He emphasized the need for international cooperation over confrontation: “In today’s deeply integrated global economy, no country can thrive in isolation. In challenging times, what we need is not the law of the jungle where the weak fall prey to the strong, but a spirit of collaboration for mutual success.”
Li also sought to project confidence in China’s economic resilience, despite growing concerns over sluggish growth and weak consumer demand.
“China’s economy continues to grow steadily, providing strong support for the accelerated recovery of the global economy,” he said. He noted that Beijing is increasing efforts to stimulate domestic demand, positioning the country to evolve “from a major manufacturing powerhouse into a major consumption powerhouse.”
China is targeting around 5% GDP growth for 2025—a goal many economists see as ambitious given current headwinds. Authorities have introduced a range of stimulus measures, including interest rate cuts and housing market incentives, but the impact has been uneven.
“We expect the Chinese economy to continue to slow over the coming months,” wrote Leah Fahy, China Economist at Capital Economics, in a research note Tuesday.
Li’s comments come amid renewed concern over global trade fragmentation, particularly in light of escalating tariffs and restrictions from the United States. His remarks echoed statements made a day earlier by President Xi Jinping, who urged visiting Prime Minister Wong to resist “a return to hegemony” and rising protectionism.
Li positioned China as a defender of multilateral trade and a rules-based global system, implicitly contrasting Beijing’s approach with that of the Trump administration.
WEF President Børge Brende also addressed the shifting global economic landscape, telling AFP that the world is entering “a different system” of globalization.
“It’s too early to say what the full impact of the tariff blitz will be,” Brende said. “But we may be heading into a decade of lower growth.”
AFP
