CHINESE PREMIER URGES NATIONS TO “OPPOSE DECOUPLING” AMID RISING ECONOMIC TENSIONS

Tue 25 June 2024:

As the European Union prepares to impose new tariffs on Chinese electric vehicles, economic tensions between Beijing and the EU are intensifying. In response, China’s Premier has called on nations to “oppose decoupling” amid these growing disputes.

Geopolitical conflicts and the technological rivalry between Beijing and Washington have exacerbated tensions with the world’s second-largest economy in recent years.

The “regressive actions of decoupling” would only “drag the world into a destructive spiral.”

Chinese Premier Li Qiang warns of negative consequences for the world if nations parted ways economically https://t.co/K3PudhAytB pic.twitter.com/ACby5Db9ky

— Bloomberg TV (@BloombergTV) June 25, 2024

“We should broadly open our minds, work closely together, abandon camp formations, and oppose decoupling,” said Li Qiang, China’s second-ranking leader, tasked by President Xi Jinping with overseeing economic matters. Li delivered these remarks at the World Economic Forum’s “Summer Davos” conference in Dalian, China.

Li also urged all parties to “maintain the stability and smooth operation of industrial and supply chains, promote the liberalization and facilitation of trade and investment, guide and promote healthy global development, and gather powerful efforts for world economic growth.”

Concerns about a decoupling between China and major Western economies have persisted for years, driven by disputes over trade and technology.

Last month, the US increased tariffs on $18 billion worth of Chinese imports, targeting critical sectors like electric vehicles, batteries, steel, and minerals. Beijing warned this move would “severely affect relations” between the two countries.

The European Union is also set to impose tariffs of up to 38% on Chinese electric vehicles by July 4, citing concerns over unfair competition due to substantial state subsidies. These duties will be provisional until November, when they will be fully implemented.

European officials, including Commission President Ursula von der Leyen, have emphasized that the EU’s strategy is not to separate from China but to “de-risk” its market amid rising political tensions.

China’s government has labeled the planned tariffs as “purely protectionist,” arguing that the success of its domestic EV industry is due to supply chain efficiency and innovation, not government subsidies.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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