China premier calls to 'oppose decoupling' at economic forum

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Li Qiang spoke at the opening of a World Economic Forum conference known as the 'Summer Davos' (Pedro Pardo)

Li Qiang spoke at the opening of a World Economic Forum conference.

China is begging please don't decoup......

China's premier called Tuesday for countries to "oppose decoupling", as economic tensions simmer between Beijing and the West, and the European Union prepares to impose new tariffs on Chinese electric vehicles.

Friction between the West and the world's second-largest economy has intensified in recent years, particularly as Beijing and Washington compete for supremacy in advanced technology and new "green" industries.

"We should broadly open our minds, work closely together, abandon camp formations, (and) oppose decoupling," said Li Qiang, China's second-ranking leader, who has been tasked by President Xi Jinping with managing economic affairs.

Li's comments came during a speech at the opening of a World Economic Forum conference known as the "Summer Davos", held this year in the northeastern Chinese city of Dalian.

Worries about a disengagement between China and major economies in the West have rumbled for years as they clash over a range of issues including trade and technology.

Last month, the United States hiked tariffs on $18 billion worth of imports from the country, targeting strategic sectors like electric vehicles, batteries, steel and critical minerals, a move Beijing warned would "severely affect relations between the two superpowers.

China is also facing heightened scrutiny from the European Union, which is preparing to impose tariffs of up to 38 percent on its EVs by July 4, citing concerns over unfair competition caused by heavy state subsidies.

The duties will be provisional until November, when they are set to come into full effect.

The EU says Beijing's "unfair subsidisation" of the EV industry threatens European manufacturers, echoing allegations by Washington that China is seeking to "flood" the US market with heavily subsidised EVs, solar panels and other items.

Li dismissed those claims.

Chinese EVs, lithium batteries and solar panels "first of all ensure domestic demand, while also enriching supply in the international market, easing inflationary pressure on the world and making a positive contribution by China to the global response to climate change," he said.

"The rapid rise of China's new industries is rooted in our own unique comparative advantages."

He urged the "stability and smooth operation" of supply chains and "liberalisation and facilitation of trade and investment."

European leaders including Commission head Ursula von der Leyen have insisted the bloc does not intend to decouple from China, seeking instead to "de-risk" its economy.

But Beijing has insisted the pending tariffs are "purely protectionist", arguing the success of its EV industry is the result of innovation and supply chain efficiency rather than government support.

Chinese and EU trade chiefs held talks on the planned tariffs earlier this month and have agreed to more consultations.

But China's EVs could soon also be targeted by Canadian authorities who are weighing their own additional tariffs.

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China's premier slams trade tensions as EV exports are hit by tariffs

Open markets and green technologies are vital for stabilizing global growth, China's premier said Tuesday, while criticizing trade tensions as he opened a conference in northeastern China.

Premier Li Qiang told political and business leaders attending the World Economic Forum Annual Meeting of the New Champions, also known as the “Summer Davos," that China is on track to attain Beijing's growth target this year of 5%.

Countries should “work closely together, reject bloc confrontation, oppose decoupling and disconnection, maintain the stability and smoothness of industrial and supply chains, and promote trade and investment liberalization and facilitation,” Li said in a speech to the conference.

“We cannot slow down our pace in green transition in exchange for short-term economic growth nor practice protectionism in the name of green development or environmental protection,” he said.

China is facing pushback over its electric vehicle exports, which some governments fear will flood markets and hurt domestic producers. The European Union and Canada among others are mulling surtaxes on Chinese EVs.

China and the E.U. said over the weekend they are open to talks over the tentative tariffs after Beijing last week announced an anti-dumping probe into European pork, largely seen as retaliation for the EV duties.

Polish President Andrzej Duda and Vietnamese Prime Minister Pham Minh Chinh joined the business leaders and economic and technology ministers attending the forum, held in the port city of Dalian.

China's economy grew at a 5.3% annual pace in January-March, though it has slowed significantly in recent years. Shutdowns and other disruptions from the COVID-19 pandemic worsened a longer-term weakening of growth as authorities cracked down on excess borrowing by property developers, tipping the industry into a downturn.

Li compared China's economy post-COVID to a person recovering from a serious illness who needs to readjust gradually. Beijing is aiding the recovery with tools such as industrial upgrades and support for the “silver economy” – businesses aimed at the country’s ageing population – he said.

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Premier Li Qiang pushes China's trade, academic agenda during Asia-Pacific tour

China fortified its partnerships from trade to academic collaborations in the Asia-Pacific region during Premier Li Qiang's recent visits to New Zealand, Australia and Malaysia, with attention centring around exchanges between Beijing and Canberra.

Unlike New Zealand and Malaysia that employ a relatively mild approach towards China, Australia - as a more vocal member of the "Five Eyes" intelligence alliance with Canada, New Zealand, Britain and the US - is seeking to strike a balance between addressing security concerns and economic development with the world's second-largest economy.

"The visit ... by Chinese Premier Li Qiang is a reminder of an old dilemma at the heart of Australia's engagement with China: how to maintain trade and economic relationships with a country that is not a security partner," said Angela Lehman, head of research at the Lygon Group consulting firm and chair of the non-profit Foundation for Australian Studies in China.

Australian businessmen welcomed the warming relationship with China, highlighted by the first visit by a Chinese premier in seven years as well as a series of on-the-ground collaborations.

Trade also remained high on the agenda, particularly imports of live Australian lobsters to China, which have been under an unofficial ban for more than three years.

"The feeling is positive after the visit by the Chinese premier," said Andrew Ferguson, managing director at seafood provider Ferguson Australia.

"It's believed that the ban will be lifted shortly, so we are told."

Ferguson added that "a number of interested potential Chinese customers" had made contact.

Amid improving relations, China had already lifted its punitive import tariffs on Australian wine at the end of March.

During Li's trip, the Melbourne-based Australia China Agribusiness Association also received a delegation from Chengdu, and both sides signed several export and import agreements.

"[We] help Chengdu to export oranges, kiwi fruits, apples and other fruits to Southeast Asian countries," said Wilton Yao, president of the non-profit organisation, noting that the association would also host delegations from Guangzhou, Shanghai and Hebei later this year.

He added that Australia would export dried garlic, fruit drinks, dried mushrooms, Sichuan cuisine seasonings, grapefruits and dragon fruit to China.

The move to grant 15-day visa-free travel to Australian citizens, which was announced during Li's trip, was also regarded as "a strong, welcoming, and unmistakable signal in its unilateral opening-up", said Wang Zichen, a research fellow at the Beijing-based Centre for China and Globalisation think tank.

"[The] membership in Western pacts such as the 'Five Eyes' or Aukus that Beijing strongly dislikes are not necessarily an obstacle," he said.

"The discussion now naturally moves to China granting visa-free travel for other members of the pacts, especially Britons and Canadians, and ultimately Americans."

As a highlight of people-to-people exchanges, Peking University president Gong Qihuang was the only representative from a Chinese university to join the seventh China-Australia CEO round table in Perth last week.

Gong Qihuang with Sharon Pickering, president of Monash University.

During the conference, Gong signed a memorandum of understanding with Sharon Pickering, president of Monash University in Melbourne, which pledged the institutions would strengthen cooperation on life science and carbon neutrality, according to a post on Peking University's LinkedIn account.

Li was also the first Chinese premier to visit Malaysia since 2015, where he signed a deal to import durians and cemented links on important sectors such as high-level manufacturing and the digital economy.

Malaysia can grab a sizeable share of China's durian market within two to three years with "no problem", said Lim Chin Khee, an adviser with the Durian Academy that trains Malaysian growers.

For New Zealand, agreements on the commencement of the trade in services negotiations based on a negative list approach under the China-New Zealand free-trade deal were discussed.

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