China is just not in search of a commerce surplus, vice premier says

DAVOS, Switzerland (Reuters) – China is just not in search of a commerce surplus and is prepared to import extra aggressive and high-quality services and products to steadiness commerce, Ding Xuexiang, the nation’s vice premier, stated on Tuesday.

Addressing the fifty fifth annual World Financial Discussion board (WEF) assembly in Davos, Switzerland, Ding stated financial globalisation was a strategy of mutual profit and shared progress.

“Protectionism results in nowhere, and there aren’t any winners in a commerce conflict,” Ding stated, calling multilateralism “the correct path for sustaining world peace and selling human growth”.

Chinese language policymakers are intensifying efforts to stimulate a faltering financial system within the face of considerations over potential U.S. tariff hikes following President Donald Trump’s inauguration on Monday.

Trump unexpectedly held off from imposing tariffs on China on his first day again within the White Home.

China welcomed extra funding by overseas corporations within the nation, Ding stated, including that China was prepared to unravel issues encountered by home and overseas companies.

Ding is main an official authorities delegation at this week’s WEF, making him the second-highest-ranking Chinese language official to rub shoulders with international enterprise and political elites on the Davos summit since President Xi Jinping’s attendance in 2017.

ECONOMIC OPENNESS

Chinese language Premier Li Qiang attended the discussion board final 12 months when he delivered a keynote speech that additionally highlighted China’s financial openness and potential for overseas funding. 

In his speech this 12 months, Ding stated the secure and wholesome growth of China’s financial system would supply impetus for international financial growth.

A protracted property disaster, excessive native authorities debt and weak client demand has slowed China’s financial development, and the nation’s exports – one of many few brilliant spots – might quickly face U.S. tariffs in extra of 60% if Trump delivers on his marketing campaign pledges.

China’s GDP grew 5% in 2024, matching the federal government’s goal, however in a lopsided vogue, with many individuals complaining of worsening dwelling requirements and elevating considerations of deepening structural issues in 2025.

Though the nation is predicted to take care of a roughly 5% GDP development goal in 2025, analysts forecast development to gradual to 4.5% this 12 months and 4.2% in 2026.

As well as, companies and buyers have longstanding worries about geopolitical and regulatory uncertainties. Overseas direct funding into China fell 27.1% in 2024 from the earlier 12 months to 826.3 billion yuan ($112.75 billion), official knowledge confirmed.

Ding, 62, is the sixth highest-ranked chief within the Politburo Standing Committee, the highest governing physique led by President Xi Jinping. He was Xi’s chief of workers earlier than being promoted to his present place in 2022 when Xi unveiled a management line-up stacked with loyalists. 

Past the message on the Chinese language financial system, buyers shall be looking forward to any closed-door conferences on the sidelines of the occasion, notably between China’s official delegation and international buyers and enterprise executives.

WEF President and CEO Borge Brende stated final week that Trump, who has twice beforehand attended Davos, will be part of “digitally” on Jan. 23, with out giving additional particulars. He stated it might be a “very particular second” to study concerning the Trump administration’s coverage priorities.

Matters on the Davos agenda vary from mounting international geopolitical and financial uncertainty to commerce tensions, local weather targets and the way AI can assist make lives higher.