A senior Chinese official has cautioned against protectionism in light of Donald Trump's renewed presence at the White House, reigniting concerns about a potential trade war.
Although not explicitly mentioning the US, Trump had threatened during his election campaign to impose up to 60% tariffs on Chinese goods. However, he delayed immediate action on tariffs, opting first to analyze the situation through his administration.
Subsequently, Trump made concessions on tariffs in exchange for China committing to increase the purchase of American agricultural and other products. Nevertheless, US officials claim that China has failed to fulfill its end of the agreement.
During a recent address to Congress, Scott Bessent, whose confirmation as Treasury Secretary progressed on Tuesday, expressed his intent to ensure compliance with those agreements and raised the prospect of requiring additional purchases to "catch up."
Trump has criticized the trade imbalance with China, where the US exports less than it imports.
Addressing the issue in Davos, Ding remarked on China's relaxation of foreign investment restrictions, emphasized a desire to enhance domestic consumption, and clarified that China isn't pursuing a trade surplus.
"We intend to import more competitive, high-quality products and services to foster balanced trade," Ding stated.
Recognizing that economic globalization may lead to "tensions and disagreements about distribution," he underscored that it is not a zero-sum game but a universally beneficial process that offers gains to all parties involved.
Highlighting that protectionism is not a solution, Ding stated, "Trade wars benefit no one," and proposed seeking mutually advantageous solutions, mentioning, "I believe we have the wisdom and capability to achieve a win-win outcome for all."
He concluded, "Our focus should not only be on expanding the benefits of economic globalization but also on its equitable distribution."