LIMA – Chinese President Xi Jinping recently reasserted himself as a global advocate for free trade during the Asia-Pacific Economic Cooperation (APEC) summit held in Lima, Peru. This call to action came at a time when rising protectionism, particularly from the incoming U.S. administration under Donald Trump, poses significant challenges to global trade relations.
Addressing leaders from the 21 member economies of APEC, Xi emphasized the urgent need to counteract protectionist tendencies threatening the global economy. "We should tear down the walls impeding the flow of trade, investment, technology, and services," Xi proclaimed, urging countries to uphold stable and smooth industrial supply chains. This sentiment resonates with his perspective from eight years ago when he first became notable for defending free trade during Trump’s initial rise to power.
This time around, the stakes have escalated as Trump has signaled intentions to impose sweeping tariffs—up to 60% on Chinese imports and potentially 10-20% on products from the rest of the world. Such actions threaten to trigger far-reaching consequences not only for the U.S. but for economies globally.
During the APEC summit, Xi’s message of collaboration starkly contrasted with Trump’s “America First” agenda. The Chinese president warned of the fracturing global economy, stating, "The world has entered a new period of turbulence and change." This warning reflects his perception of the growing divisions wrought by unilateral trade practices.
Historically, Xi’s advocacy for open markets often serves as both strategy and philosophy, positioning him as the champion of global economic integration. He reiterated these themes during his speech delivered by one of his ministers, highlighting the detrimental aspects of dividing the interconnected global economy. The Chinese leader linked protectionism to historical regression, iteratively stressing the interdependence of economies.
Meanwhile, as Xi engages with various world leaders, including those aligned with the U.S., the potential for diplomatic efforts looms large. The recent meetings between Xi and leaders from New Zealand, Singapore, Chile, South Korea, Japan, and Thailand showcase China's intent to maintain strong international relationships. New Zealand's Prime Minister, Christopher Luxon, echoed Xi's sentiments, advocating for adherence to rules-based trade rather than power-based dynamics. This vocal support for open commerce among U.S. allies signifies potential shifts as world leaders prepare for Trump’s impending trade policies.
The anticipated imposition of tariffs under the Trump administration raises concerns among numerous governments bracing for the challenges of forthcoming negotiations. Xi's active diplomacy aims to solidify and expand China's influence throughout South America and beyond by fostering cooperative trade relationships and participating in multi-nation dialogues.
Significantly, Xi's week-long diplomatic tour across South America coincides with his call for economic cooperation. He inaugurated the Chancay port, which will serve as a direct shipping route from China to Peru, reducing transit times and logistics costs. These developments serve to strengthen trade ties and cultivate economic interdependence, contrasting sharply with the protectionist strategies of the incoming U.S. leadership.
Trade disputes and tariff threats often lead to apprehension among global market participants and investors. The foundations of economic systems are at stake, and both Xi and Trump navigate through comparable domestic interests and pressures. Leaders like Canadian Prime Minister Justin Trudeau highlight the necessity of emphasizing trade benefits for ordinary citizens, arguing for fairness and access within the international trading system.
Shou Chew, CEO of TikTok, also spoke about the significance of safeguarding online platforms, emphasizing data security concerns raised by U.S. lawmakers. Although TikTok has been under threats of bans due to its Chinese ownership, Chew emphasized the need for rational discussions over retaliatory policies. Meanwhile, former Chinese officials continue to urge the global community to resist unilateralism and defend the principles of global trade.
With these dynamics now capturing global attention, as Xi embraces his role as the defender of free trade, the ramifications of Trump’s policies loom ever closer. The international community watches with bated breath, anticipating how these tensions will affect everything from economic relations to overall global stability. The future of U.S.-China relations and the broader global economy now hangs precariously on the balance of diplomacy and the probability of open dialogue, all leading back to the core principles of trade Xi has championed.
