Xi Seizes Role as Defender of Global Free Trade Against Trump

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(Bloomberg) — As Donald Trump threatens to impose tariffs on the entire world, Xi Jinping is once again wasting time positioning himself as the main defender of the international trading system.

China’s leader warned on Friday that the global economy is fracturing as protectionism spreads, posing “severe challenges.” The world, he said, had “entered a new era of turmoil and change.”

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“Dividing an interdependent world will go back in history,” Xi said in a speech at the APEC CEO Summit in Peru read on stage by one of the ministers.

For Xi, it was the role he played when Trump first came to power in 2017. At the time, China’s head of state called on global business elites at the World Economic Forum in Davos, Switzerland, to reject trade wars and protectionism, saying they would cause “wounds and losses in both.”

In the eight years since, Trump has imposed punitive tariffs on China largely imposed by the Biden administration, which has also stepped up efforts to deny Beijing advanced technology. As he prepares to take office again in January, Trump is now threatening to impose tariffs of 60% on China — and, crucially, 10% to 20% on the rest of the world.

The threat of universal tariffs gives Xi a new opening to improve ties with several governments in 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 US allies and security partners in the Asia-Pacific.

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“We’re very invested in making sure we have a rules-based system, not a power-based system,” New Zealand Prime Minister Christopher Luxon said at the APEC CEO Summit. “There is a shift from rules to power, and this is what we strongly support: Regardless of your size, we want countries to be able to navigate the world through an international rules-based order.”

The fact that it is unclear whether he is referring to China or the US, long known as the leader of the free world and champion of globalization, shows how global geopolitics have changed in the past two weeks. The Biden administration has often blasted China for not adhering to the rules-based order, with Secretary of State Antony Blinken often leading the charge.

In his closing speech at the APEC CEO Summit on Friday, however, Blinken did not talk about the rules-based order in all its achievements over the past four years – the epitome of an administration with one foot out the door. .

While Xi is busy with meetings – and plans to meet with Biden later on Saturday – the US president is keeping 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 inaugurated a $1.3 billion port with Xi the night before to transform South America’s trade with Asia.

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

Still, Boluarte was all smiles as he welcomed Xi to an elaborate ceremony at the Government Palace in Lima that featured a video link to the port of Chancay some 60 kilometers (37 miles) to the north. Xi said the facility will create a direct line from Chancay to Shanghai, reducing shipping time and reducing logistics costs.

Other China-related speakers featured heavily at the APEC CEO Summit on Friday.

‘Ruining for All’

Shou Chew, chief executive of TikTok – whose parent company ByteDance Ltd. based in Beijing – called the app “an industry leader when it comes to online security and data security.” Although the U.S. passed a law this year that would have banned the app if its Chinese owner didn’t sell to an American buyer, Trump has spoken favorably of the company. What he will ultimately do is unclear.

Former Chinese Ministry of Commerce official Ren Hongbin called on participants to “stand against protectionism and unilateralism.”

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“There is a rhetoric of decoupling and derisking,” said Ren, now chairman of the China Council for the Promotion of International Trade. “The artificial disconnection of global supply chains harms everyone.”

Some of the most honest comments about dealing with Trump came from Prime Minister Justin Trudeau, who talked about how his government “rolled up its sleeves and did the hard work” to ensure that the trade deal between Canada, Mexico and the US was renewed to their advantage. everybody. He said political leaders need to do a better job of ensuring that trade benefits average citizens.

“It’s not easy,” Trudeau said of the first round of trade talks with Trump. “And nothing is going to be easy this time.”

—With assistance from Lauren Dezenski.

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