China at World Economic Forum: Advocating Free Trade Amid Global Tensions

China's Call for Free Trade

• 💡 Chinese Vice Premier He Lifeng at the World Economic Forum advocated for free trade, cooperation, and multilateralism, warning against trade wars.
• 🎯 He emphasized that economic globalization is a universally beneficial and inclusive historical trend, leading to fast development for many countries, including China.
• 🔑 China positions itself as the "standard bearer" of free trade, defending not only its own interests but also those of mankind and even the American people.
• ⚠️ Tariff and trade wars have no winners, instead driving up costs, fragmenting the world economy, and disrupting global resource distribution.

Global Economic Tensions

• 🇺🇸 The United States is identified as a principal source of global risk in 2026, with its administration weaponizing tariffs and trade for its own purposes.
• 🇪🇺 European leaders, including the German Chancellor and French President, expressed strong concerns over US threats to impose 10% tariffs on European countries.
• 🇩🇰 The US push to acquire Greenland was described as an "annexation" of NATO territory, further escalating tensions and challenging transatlantic relations.
• 💬 European leaders are prepared to "flex muscles economically" and retaliate if confronted with inappropriate tariffs, viewing it as the only language an aggressive American president understands.

Impact of Trade Wars

• 📊 Economic analysis indicates that 96% of US-instituted tariffs are paid for by US entities (corporations or individuals), not by the exporting countries.
• 📉 Tariffs are seen as disastrous for the global economy, causing both the imposing country and exporting countries to suffer, and potentially reducing global economic growth.
• ⚠️ The economics profession has historically been averse to tariffs, believing in the theory of comparative advantage for hundreds of years.

Multilateralism in Action

• 🇨🇦 A landmark trade deal was signed between China and Canada for Chinese-made electric vehicles and Canadian canola seeds, reducing tariffs and boosting economic relations.
• 🇪🇺 The European Union signed a major trade agreement with Mercosur, its biggest in 25 years, sending a strong message to Washington about choosing fair trade over tariffs.
• 🌱 These agreements demonstrate a commitment to multilateralism and derisking strategies, moving away from asymmetric dependencies and promoting long-term partnerships.

China's Economic Outlook

• 📈 China met its annual growth target of 5%, surpassing the 140 trillion yuan threshold, demonstrating a large, stable, and resilient economy.
• 🚀 The country is focusing on "new qualitative productivity" through technological innovation to achieve greater efficiency and growth, aiming to surpass slowdown effects in other sectors.
• 🌐 China continues its opening-up policy to the world, ensuring a stable supply chain and making its large domestic market a powerhouse for the global economy, especially for Global South nations.