Chinese Vice Premier He Lifeng addressed criticisms regarding his country’s trade practices during a speech at the World Economic Forum in Davos, Switzerland. He proposed offering increased market access as a means to address existing trade imbalances.
He, who oversees economic policy and trade negotiations for China, spoke to an audience of business leaders and political figures, aiming to alleviate concerns about the influx of goods from China’s manufacturing sector.
Last year, China reported a significant trade surplus, reaching $1.2 trillion. Despite this figure, He asserted that China views itself primarily as a commercial partner rather than a competitor on the global stage.
“We never seek a trade surplus,” He stated during his address, as reported by Bloomberg. “On top of being the world’s factory, we hope to be the world’s market too.”
The Vice Premier’s remarks presented a contrasting perspective to recent declarations from former President Donald Trump, who had previously threatened substantial tariffs on French wine following President Emmanuel Macron’s refusal to endorse his peace proposal.
He characterized China as a proponent of international cooperation, open trade, and collaborative global efforts, reiterating common positions frequently articulated by Beijing.
“The world must not return to the law of the jungle where the strong prey on the weak,” he declared. “China’s development presents an opportunity, not a threat to the world economy.”
Navigating International Economic Relations
He was among the Chinese officials who engaged in discussions with the United States last year, aimed at de-escalating trade friction that arose after the initiation of a tariff dispute. These negotiations, involving the American team led by Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, culminated in a provisional agreement in October of the previous year, following five rounds of talks.
This one-year agreement has helped to reduce tensions between the world’s two largest economies. However, recent actions by former President Trump in countries that maintain friendly relations with China, such as Venezuela and Iran, could potentially destabilize this fragile truce.
For the present, the agreement remains in effect. Plans are underway for President Xi Jinping and former President Trump to meet on four occasions throughout the year. A summit scheduled for April could mark a significant diplomatic event, potentially making Trump the fifth leader from a Group of Seven nation to visit China within a six-month period.
During his participation at the forum, He encouraged both China and the United States to capitalize on opportunities for mutual benefit. While not directly referencing specific technology restrictions imposed on Beijing, he noted that China frequently seeks to acquire foreign products, but encounters situations where “others don’t want to sell.”
“Trade issues often become security hurdles,” he observed.
In a sign of potentially improving relations with the United States, the Trump administration has indicated a willingness to permit Nvidia Corp. to export more advanced chips to China, while still prohibiting the sale of its most sophisticated offerings.
Under the previous administration of President Joe Biden, the United States collaborated with its allies to restrict Beijing’s access to advanced semiconductors, which are considered crucial for its military advancements.
He’s visit to Switzerland coincides with the participation of the largest ever delegation from the United States at the forum. Former President Trump is scheduled to address attendees on Wednesday, accompanied by Secretary Bessent and Secretary of State Marco Rubio.
Economic Performance and Underlying Challenges
China’s economy achieved its official growth target of approximately 5% last year, according to data released on Monday. While exports have been a key driver for the world’s second-largest economy, the prolonged downturn in the real estate sector and declining investment are exerting pressure on the country’s demand for imports.
A decrease in domestic prices has also contributed to a weakening of the yuan when adjusted for inflation, thereby making Chinese goods more appealing on the international market.
This economic situation is generating concern in other parts of the world, as China increases its exports to regions including Africa and Latin America. French President Macron has described the situation as “life or death” for European manufacturing industries.
He stated that China intends to foster its consumer sector as a primary engine for economic expansion by increasing domestic incomes and encouraging spending within the country.
Officials are actively working towards positioning China as “a consumption powerhouse on top of a manufacturing powerhouse,” he explained.
The country’s economic progress, according to He, is largely attributable to “reform and opening up and innovation, rather than so-called government subsidies.”