Tuesday, January 17, 2017

Xi Jinping aims to Trump in his criticism of the protectionism – Trade

(BLOOMBERG). The chinese president, Xi Jinping, urged the business elite and policy of the world to reject the trade wars and protectionism, in his first public criticism of the policies advocated by the next president of the united States, Donald Trump.

In a speech in which did not name Trump, but where their comments clearly were aimed at the president-elect, Xi said on Tuesday at the World Economic Forum in Switzerland that the deficiencies of governance, not globalisation, were causing anxiety in the world. He urged political leaders and billionaires present to close the gaps of wealth distribution and to improve the financial regulation, without abandoning the policies that have driven decades of growth.

Xi noted that it recognized that if Beijing was caused to enter in a trade war with the united States under the mandate of Trump, would also damage its own prospects of China.

"Search the protectionism is like holing up in a dark room, in which you could avoid the wind and rain, but also it would prevent the light of the sun," said Xi, the first chinese head of State in giving a speech at the annual meeting in Davos. "Start a trade war only will cause damage and loss to both parties."

The surprise victory of Trump in November, after a campaign in which he accused China of "looting" of jobs to the united States, has helped to position the leader of the Communist Party as an unusual champion of the structures of global capitalism that has driven the boom that for decades his country had experienced. The statements of Xi show that you are taking seriously the threats of Trump confronted with tariffs and exchange actions once he assumes as president on Friday.

"it Shows that China is not underestimating the danger of the outbreak of a trade war," said I Weiwen, sudirector of the Center for China and Globalization, which has headquarters in Beijing, and a former commercial manager in New York and San Francisco. "China used to be a mere support in the world economic order headed by the united States. Now, as the next president of the united States shows signs of decline, China is stepping forward to assume a leadership role".

troubleshooting

The second largest economy in the world represents a bastion of consistency for the attendees to Davos next to a series of european elections-in France, Holland, Germany and possibly Italy – after the double impact that caused the victory for Trump and the vote in favour of Brexit on the United Kingdom. Such "extreme events in the environment" led the list of most probable risks in the annual survey of the forum this year.

The protectionist sentiment that threatens to slow down the growth engine of China, it offers Xi an opportunity to move forward with its goal of modeling the global economic systems.

Xi made mention of the exodus of syrian refugees and the global financial crisis as examples of problems generated by a bad management rather than by increased economic ties. He said that world leaders have a responsibility to improve regulation, reduce inequality and decrease the "excesses" of globalization.

“makes NO SENSE”

"it makes No sense to blame the economic globalization of the world’s problems, because it simply is not so," said Xi. "The history of mankind has shown us that you should not fear problems. What you should worry about is the refusal to face up to them".

China plans to publish on Friday the figure of gross domestic product last year, hours before Trump to enter the White House. It is expected that the data is located in the middle of the target range of the Government’s 6.5 to 7 percent, but the stabilization has been achieved at the expense of increasing debt, rising property prices and questions about the commitment of China’s reform.

The retinue of Xi in Davos includes more than 80 business executives, including the founder of Alibaba Group Holding Ltd., Jack Ma, the chairman of Dalian Wanda Group Co., Wang Jianlin; and the chairman of Baidu Inc., Zhang Yaquin

Xi urged other countries to keep open their doors to chinese investors, marking another difference with Trump, and said he had no plans to devalue the yuan to boost competitiveness.

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