China’s President Xi Jinping warned on Tuesday against scapegoating globalisation for the world’s ills or retreating behind protectionist walls, days before Donald Trump takes office.
In what amounted to a rewriting of the global economic order, led for decades by the United States, Mr. Xi used his début speech at the World Economic Forum in Davos to insist that globalisation was irreversible despite a populist backlash in the West.
There is “no point in blaming economic globalisation for the world’s problems”, he said, saying that the process was not at the root of the Syrian refugee situation or the 2008 financial crisis.
4-day WEF event
Globalisation should be “more inclusive, more sustainable”, he added, adding that currently existing global institutions are “inadequate” and should be more “representative”.
Mr. Xi’s keynote address kicked off four days of networking and partying by the global elite in the Swiss ski resort, in a week that climaxes as Mr. Trump takes office after a campaign that blamed China and globalisation for the loss of millions of U.S. factory jobs.
Mr. Xi warned: “No one will emerge as a winner in a trade war.”
Mr. Trump has repeatedly accused China of carrying out trade policies that have led to massive U.S. job losses. He has threatened to slap tariffs of up to 45% on Chinese goods. But addressing a hall packed with government leaders, captains of industry, stars of entertainment and agenda-setting thinkers, Mr. Xi issued a rebuke to such thinking. “Pursuing protectionism is just locking oneself in a dark room. While wind and rain may be kept outside, so are light and air,” he said.
It is simply “not possible” to reverse the flow of global capital, technology, goods and people, Mr. Xi added, insisting China was committed to “opening up” and defending globalisation’s gains for emerging economies.
Conscious of the sour public mood in the West, organisers are billing the Davos meet as “A call for responsive and responsible leadership”, and top business executives agree that they must not appear oblivious to the anger of ordinary people.
A World Economic Forum study said that within advanced economies, median per capita income fell on average 2.4% over the past five years, helping to explain why disaffection is so high across the West.
And the scale of the chasm between the richest and poorest was laid bare by an Oxfam report that said eight men own the same wealth as the poorest half of the world’s population.
Other research presented by the consultancy Edelman found public confidence in institutions including in governments, business, the media and NGOs slumping across the rich world. — AFP
