Premier Li Keqiang addresses WEF’s “Meeting of the New Champions” in Tianjin
September 25, 2018 Category Foreign trade, Weekly
Premier Li Keqiang called for safeguarding economic globalization and accelerating the new industrial revolution by promoting more inclusive development, innovation and new drivers for economic growth. The authority of the rule-based multilateral trading system – the foundation for globalization and free trade – should be respected and safeguarded as uncertainties and anti-globalization sentiment are on the rise, Li said at the opening ceremony of the World Economic Forum’s Annual Meeting of the New Champions 2018, also known as Summer Davos, in Tianjin. Unilateral action cannot solve problems, and all nations should help boost the new industrial revolution, Li said. The event, with the theme “Building an Innovation Society in the Fourth Industrial Revolution”, has drawn more than 2,500 business leaders, government officials, researchers and journalists from more than 100 countries.
China has no intention of weakening its currency to help exporters and will not engage in any form of “competitive devaluation” of its exchange rate, Premier Li Keqiang said. “Some people think China deliberately devalued the yuan; this is groundless,” Li said. “A one-way depreciation will do more harm than good for China,” Li told business and political leaders. “China will not choose the path of bolstering exports by devaluing the yuan, the yuan exchange rate will be kept basically stable,” Li said. “I welcome you filing complaints to the Chinese government, including all levels of governments, if you have any problem in doing businesses in China,” Li said. He also ruled out a massive stimulus program to offset the economic impact of the trade war, saying the government would fine-tune its fiscal and monetary policies to cope with the economic challenge.
Li also said the world’s multilateral trading system should be upheld. “All existing problems need to be worked out through consultation,” he said, adding that unilateralism does not offer solutions. The Premier promised to build a business environment that treats Chinese and foreign companies equally, and ensures fair competition. “China will make greater efforts to promote opening-up, deepen reform in all areas, further ease market access, improve transparency of policies, as well as conduct fair and equitable regulation,” Li said. He added that China would further cut taxes and fees to reduce the corporate burden.
Premier Li also held a dialogue with international business leaders attending the Annual Meeting, answering questions on deleveraging; the WTO and bilateral trade agreements; the opening-up of China’s financial markets; measures to strengthen the protection of intellectual property rights; tax reform; and programs to promote innovation and entrepreneurship. The transcript of the dialogue, chaired by Executive Chairman of the World Economic Forum Klaus Schwab, is available on the website of the China Daily here.
A war of words broke out when two U.S. Republican Congressmen called out China’s commitments to free and fair trade just minutes after Chinese Premier Li Keqiang’s keynote speech. Darrell Issa, from California, and Todd Rokita, of Indiana, called on China to stop “stealing and cheating” and urged the government to take timely actions that would allow a ceasefire in the trade war with the United States. Their ad hoc press conference on the sidelines of the Forum was not on the official schedule and attendees received an email during Li’s speech to say it would occur less than 30 minutes after the Premier’s address. The two Congressmen voiced strong support for the Trump administration’s trade confrontation with China.
California Republican Representative Darrell Issa has meanwhile being appointed by the White House as Director of the U.S. Trade and Development Agency (USTDA). One of the Agency’s tasks is to help companies create jobs through exporting U.S. goods and services. Issa’s appointment is subject to Senate confirmation.
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