Tuesday 25 June 2024 - 09:56

China Premier Warns Decoupling Will Lead to ‘Destructive Spiral’

Story Code : 1143700
China Premier Warns Decoupling Will Lead to ‘Destructive Spiral’
The “regressive actions of decoupling” would only “drag the world into a destructive spiral where the fierce competition for a larger slice ends up in a diminishing pie,” Li said at the World Economic Forum’s meeting on Tuesday in the northeastern city of Dalian.

“This is something we do not want to see,” he added, Bloomberg reported.

Li also mounted a defense of his nation against claims it is dumping cheap goods on the world, touting its prowess in science and technology for building “a broad stage for enterprises to pursue innovation and upgrade their products.”

“Exploration should not be seen as zero-sum game,” he added.

The remarks followed Canada’s move to clamp down on imports of Chinese-made electric vehicles, aligning itself with the Biden administration on trade. The European Union also plans to increase tariffs on EVs.

China has suggested there may be benefits for Germany if the EU backs off on its plan, floating lowering its existing tariffs on large-engine cars in return for scrapping the planned EV levies, according to people familiar with the discussions.

Li also sounded a note of optimism on China’s economy despite a prolonged property slump, weak consumer confidence and rising local government debt.

“We are confident and capable in achieving the growth target of about 5% for this year,” he said, referring to a goal he announced while delivering a government work report in March. China would adopt combination of measures, including fiscal policy and financial means, to boost its economy, he added.