China premier slams trade tensions as electric vehicle exports hit by tariffs

25 June 2024 , 11:18

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Chinese premier, Li Qiang, has stressed the importance of open markets (Image: No credit)

China's premier, Li Qiang, has emphasised the importance of open markets and green technologies for global growth stability.

Speaking at the World Economic Forum Annual Meeting of the New Champions, also known as "Summer Davos," he criticised trade tensions and confirmed China is on track to achieve its 5% growth target this year. Li urged nations to "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 liberalisation and facilitation."

He warned against slowing down the pace of green transition for short-term economic growth or practising protectionism under the guise of green development or environmental protection. China is currently facing resistance over its electric vehicle exports, with fears that they could flood markets and harm domestic producers. The European Union and Canada are considering surtaxes on Chinese EVs.

However, following Beijing's announcement last week of an anti-dumping probe into European pork, seen as retaliation for the EV duties, both China and the EU have expressed openness to discussions over the tentative tariffs. Polish President Andrzej Duda and Vietnamese Prime Minister Pham Minh Chinh were among the attendees at the forum in Dalian, alongside business leaders and economic and tech ministers.

China's has seen economic growth of 5.3% for the first quarter of the year, but it's no secret that the pace has slowing for a while now. The COVID-19 crisis added to the loss of momentum, exacerbating a slowdown triggered by the government's clampdown on property developers' debt, which sent the real estate market into a tailspin.

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Li likened China's post-pandemic economic recovery to someone getting back on their feet after a severe illness, suggesting a need for a gradual return to form. To bolster this bounce-back, Beijing is deploying strategies like industrial enhancements and nurturing the "silver economy" to cater to its growing elderly demographic, he explained.

Lawrence Matheson