As Trump’s return approaches, China’s Xi critiques protectionism at APEC

As Donald Trump‘s potential return to the U.S. presidency casts a shadow over the Asia-Pacific Economic Cooperation (APEC) summit in Lima, Chinese President Xi Jinping emphasized on Friday the necessity of rejecting unilateralism and protectionism in favor of economic globalization.

Xi’s remarks on protectionism at APEC provide insight into China’s strategy for positioning itself following Trump’s inauguration in January.

Trump has committed to imposing tariffs exceeding 60% on Chinese imports, yet Beijing and its businesses are optimistic that his protectionist stance may also alienate U.S. allies in Europe and Asia, thereby creating an opportunity for China to enhance its global influence and strengthen trade relationships.

In a speech delivered to business leaders by Chinese Commerce Minister Wang Wentao at the APEC CEO Summit, Xi remarked that economic globalization is encountering “countercurrents,” without naming any specific nation or leader.

“The world has entered a new era of turmoil and transformation, with unilateralism and protectionism on the rise, and the fragmentation of the global economy becoming more pronounced,” Xi stated.

“Impediments to economic cooperation under various justifications, along with attempts to isolate our interconnected world, are reversing the historical trajectory,” he continued.

Xi also highlighted several recent initiatives by the Chinese government aimed at attracting foreign investment, such as expanding the range of Chinese industries eligible for foreign investment and offering unilateral visa exemptions for foreigners traveling to China.

China will pursue more independent and unilateral policies for opening up, enhance the network of high-standard free trade zones globally, and further increase access to its markets, according to the Chinese leader.

Nevertheless, some analysts argue that China’s appeal as an alternative or counterbalance to a protectionist United States under Trump has diminished since 2016, the year Trump was first elected.

Ja Ian Chong, a political scientist at the National University of Singapore, noted that unlike in 2016, there are now significant concerns within the international community regarding the impact of Chinese state subsidies on industrial sectors and the resulting overcapacity, which adversely affects other economies.

“China exhibits protectionist tendencies similar to those of the U.S., and its economy is considerably less open today than it was in the past,” Chong stated.