The main protagonists in the US-China trade war set out their positions at the start of an Asia-Pacific summit in Papua New Guinea on Saturday.
Ahead of the Asia Pacific Economic Co-operation (APEC) summit on Saturday, Chinese President Xi Jinping was first to speak and said there would be no winners from a trade war or a new cold war. Protectionist actions were short-sighted and doomed to fail, Xi said.
“We should say no to protectionism and unilateralism,” Xi said, in evident reference to President Donald Trump’s “America First” policies.
“Attempts to erect barriers and cut close economic ties work against the laws of economics and the trends of history,” Xi said. “This is a short-sighted approach and it is doomed to failure.”
The Chinese leader said the world should “uphold the WTO-centered multilateral trading system, make economic globalization more open, inclusive, balanced and beneficial to all.”
Xi’s comments follow months of a trade dispute between the US and China with each imposing tariffs on each other’s goods. “History has shown that confrontation — whether in the form of a cold war, hot war or trade war — will produce no winners,” he said.
He also called for a resolution to the dispute through consultation, in a spirit of equality and mutual understanding.
US VP Mike Pence defiant
But as the US Vice President Mike Pence addressed the assembly, he said the US would not back down in its trade dispute with China and could double its tariffs unless China agreed to its demands.
“We have taken decisive action to address our imbalance with China,” Pence declared. “We put tariffs on $250 billion (€218 billion) in Chinese goods, and we could more than double that number.”
“The United States, though, will not change course until China changes its ways,” Pence stated.
Pence also attacked China’s global infrastructure “Belt and Road” initiative, calling many of the projects low quality and leaving developing countries with loans they were unable to afford.
Xi had defended the initiative: “It is not designed to serve any hidden geopolitical agenda, it is not targeted against anyone and it does not exclude anyone… nor is it a trap as some people have labelled it,” he said.
“Mankind has once again reached a crossroads,” Xi remarked. “Which direction should we choose? Cooperation or confrontation? Openness or closing doors. Win-win progress or a zero-sum game?”
The assembled leaders of the Pacific Rim countries account for 60 percent of the world’s economy.
‘#ABAC recommends that #APEC Leaders continue support for the integrity and purpose of the international trading system, avoid reliance on tariff actions and instead work within the WTO framework to seek redress’. Read the full ABAC report here: https://t.co/boUDzJNwar #APEC2018
— APEC CEO Summit 2018 (@APEC_CEOsummit) November 17, 2018