CIIE a platform against protectionism
By Wang Cong and Xie Jun
The China International Import Expo (CIIE) was designed to
offer a platform for foreign companies to sell their products and services
directly into the Chinese market, but with protectionism on the rise, it has
evolved into a critical global battleground to defend the multilateral free
trade system.
That shift was palpable inside and on the sidelines of the
second CIIE, which officially kicked off on Tuesday in Shanghai, where world leaders
and business executives decried unilateral and protectionist actions, most
notably from the US. They also warned of more damage to the global economy from
rising trade tensions and called for action to preserve multilateral and free
trade.
Rejecting
protectionism
On Wednesday, even as companies were busy making deals and
as public announcements of intended deals constantly flared inside the
exhibition halls, calls for boosting global cooperation and lowering trade
barriers were loud and clear.
“Trade liberalization and facilitation is definitely needed
by multinational companies, which require a stable, predictable global
environment in which to make decisions,” Yang Yuanqing, CEO of Chinese computer
manufacturer Lenovo, told the Global
Times on Wednesday, November 6. “We will always support globalization and
multilateralism.”
Yang’s comment expressed the overwhelming sentiment at the
CIIE that economic globalization and free trade must be preserved.
“Basically, everywhere I go, I hear some form of criticism
of the US’ unilateralism and protectionism,” Bai Ming, a research fellow at the
Chinese Academy of International Trade and Economic Cooperation who is
attending the CIIE, told the Global Times
on Wednesday.
“The CIIE has indeed become a platform for not just business
deals but for defending multilateralism and free trade.”
Chinese President Xi Jinping set the tone for the rejection
of unilateralism and protectionism during a speech at the opening of the CIIE
on Tuesday morning, November 5. “We need to stand firm against protectionism
and unilateralism,” he said, underscoring China’s unwavering commitment to free
trade.
The president’s call was echoed by world leaders and
corporate executives. “Should we just give up on such a trade order and resort
to unilateralism and tariffs or the law of the jungle? Is that the way forward?
I don’t think so,” French President Emmanuel Macron said in a speech at the
CIIE’s opening on Tuesday, November 5.
Concrete actions
In more concrete moves, China hosted a series of events on
the sidelines of the CIIE to highlight its commitment toward the multilateral
trade system, including an informal ministerial level meeting of 33 WTO
members.
The meeting, attended by officials from the WTO and China,
the EU, Russia, India and other members, was focused on reforms for the WTO,
among other topics, according to the Chinese Ministry of Commerce.
“Participating ministers or representatives affirmed that
they should firmly support the rules-based multilateral trade mechanism,” the
ministry said in a statement on Tuesday, November 5.
Speaking at the meeting, WTO Director-General Roberto
Azevedo called on members to make clear contributions, with the global economy
beset by tensions and uncertainty surrounding trade.
“We can show that the multilateral trading system can
deliver meaningful results. We can demonstrate that members are able to come
together and reach decisions that enhance certainty and predictability in the
21st century global economy,” Azevedo said.
Huo Jianguo, vice chairman of the China Society for World
Trade Organization Studies who attended the meeting at the CIIE, said that the
discussions offered a "useful platform" for members to communicate
about "how we can move forward regarding WTO reforms."
“By holding these meetings, China is able to help build
consensus among countries at different developmental stages to push for reforms
at the WTO, which is one of the most important issues for safeguarding the
multilateral trade system,” Huo told the
Global Times on Wednesday.
Stark warnings
The widespread denunciation of unilateralism and
protectionism at the CIIE came as fresh signs suggested that trade tensions
have weighed on the global economy and could inflict more damage if they
continue to escalate.
As the CIIE convened on Tuesday, the UN’s Conference on
Trade and Development issued a stark warning in a report that the US-initiated
trade war with China has been a “lose-lose situation for both countries and the
wider world,” with US consumers and companies bearing the most of the cost of
higher US tariffs on Chinese products.
Chinese and US trade negotiators are continuing
consultations as they apparently aim to sign an interim trade agreement in the
near future, though details remain murky as to when and where such a deal could
be reached.
The WTO also released the Chinese version of its annual
report, in which it significantly lowered its forecast for global trade growth
in 2019 to 1.2 percent year-on-year from its previous estimate of 2.6 percent
year-on-year, citing policy uncertainty.
The report called for more cooperation on services trade,
noting that this type of trade is expected to account for 50 percent of total
global trade by 2040.
Buyers and sellers talk
business at a supply-demand matchmaking conference during the CIIE on
Wednesday. (Photo by Yang Hui from Global Times)
CIIE a platform against protectionism
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