Chinese Premier condemns unilateralism in trade clashes
He says problems must be solved through consultations
TIANJIN, CHINA Chinese Premier Li Keqiang railed against "unilateralism" yesterday in a veiled allusion to the trade spat with the US.
Speaking at the World Economic Forum in the city of Tianjin, Mr Li said problems must be worked out through consultations, a day after China and the US swapped tit-for-tat tariffs.
"It is essential that we uphold the basic principles of multi-lateralism and free trade," Mr Li said in his speech.
"For any existing problems, they need to be worked out through consultation," Mr Li said, adding that "unilateralism" does not offer solutions.
The trade war deepened on Monday when US President Donald Trump announced he would push ahead with tariffs on US$200 billion (S$274 billion) in Chinese goods, on top of US$50 billion already targeted.
After Beijing decided to retaliate on Tuesday with duties on US$60 billion in American products, Mr Trump accused China of seeking to influence midterm congressional elections by taking aim at his political base.
The tariffs follow an invitation from Treasury Secretary Steven Mnuchin to hold talks with the Chinese, but Beijing has warnedthe latest developments led to "uncertainty".
China's yuan has steadily depreciated this year, causing Mr Trump to accuse Beijing of manipulating the currency to offset the new tariffs.
Mr Li denied the claim, saying "there is no evidence" of this.
"For China, depreciation holds more negatives than positives," he said. "China will not use renminbi depreciation to stimulate exports."
Mr Trump has accused Chinese companies of stealing US intellectual property (IP) and forcing US companies to transfer technology to gain market access.
Experts said IP protection has been improving in China, though some members of business associations from the US and Europe said they still have to transfer technology to operate.
"Any theft of IP from a Chinese company or a foreign company will be dealt with seriously with doubled, tripled and unaffordable penalties so all innovators will be fully assured in making innovations," Mr Li said.
China's economy continues its fast pace of growth and its potential remains vast, Mr Li said, adding the pool was big enough for all companies.
Still, he acknowledged China faced problems, like infrastructure investment levels falling to record lows.
But China will not resort to large-scale stimulus to prop up the economy, he pledged.
"Over the past 40 years, China's economy has always been climbing over hurdles and persisting in the face of difficulties to move forward," Mr Li said.
"As long as we overcome them ... in the future we will be able to develop even better."
The promised opening up of the economy also would pick up, with Mr Li saying China will continue to reduce tariff rates and unreasonable fee burdens.
While Beijing has long proclaimed itself the pillar of globalisation and free trade, foreign companies operating in China said that is far from reality.
But Mr Li said companies enjoyed a level playing field, adding: "Chinese and foreign companies, as long as they are registered, they will be treated equally without discrimination." - AFP
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