China Urges Businesses to Oppose Protectionism as U.S. Execs Meet

Premier Li Qiang assured a gathering of global executives in Beijing that China is ready for “possible unexpected shocks,” while urging them to "resist protectionism" and support globalization.

Top CEOs, including Apple’s Tim Cook, FedEx’s Raj Subramaniam, and Pfizer’s Albert Bourla, attended the two-day forum in the Chinese capital, which coincides with heightened trade pressures from U.S. President Donald Trump aimed at rebalancing what he considers an unfair trade relationship.

Li cautioned that "decoupling and disrupting supply chains would only worsen crises" and committed to further expanding market access for foreign investors across various sectors.

“If the world returns to the law of the jungle, it will be a step backward in history and a tragedy for humanity,” he said on Sunday during an opening address at the annual gathering.

“We have prepared for possible unexpected shocks, which, of course, mainly come from external sources. Where necessary, the Chinese government will introduce new policies to ensure the smooth operation of the Chinese economy.”

A loaded message from Li as China tries to revive confidence and stem its drop in foreign investment against the backdrop of a slowing economy. Right when Trump tariff's impact on Beijing and the US-China business community is being prepared for possible ill winds, a pretty timely gesture.

Traditionally, the development forum in China has served as a major platform for dialogue between senior officials of the Chinese government and foreign business leaders. This year's forum  goes even further, serving as an informal venue for U.S.-China diplomacy in very uncertain times.

The Wall Street Journal reports that, on the sidelines of the event, Li conferred with U.S. Senator Steve Daines-a Trump ally-who called the encounter "a first step" toward a prospective summit involving President Trump and Xi Jinping of China.

There were representatives from American corporations, including Qualcomm, Pfizer, FedEx, and Boeing, where Li told the attendees that "America and China share broad common interests and ample opportunities for cooperation" and called for "win-win collaboration."

President Trump has been very open about his desires to make a deal with Xi Jinping and China. He further suggested on Friday that the U.S. trade chief should meet with Chinese counterparts for talks next week.

Trump's additional 20% tariff on all Chinese imports in early January this year came on top of tariffs for hundreds of billions of dollars worth of goods. China retaliated with tariffs on U.S. imports of agriculture and energy products and ended export controls on certain raw materials.

Authorities say U.S. tariffs may go up in the weeks to come following the announcement of reciprocal duties on various countries by the White House, likely early next week. This new approach is part of the administration's controversial plan to enforce manufacturing back to America and address what they see as unfair trading.

Trade Uncertainties Persist

The effort to redefine America’s trade relationship with China and the anticipated disruptions to global trade were central topics for many multinational executives and analysts attending the forum in Beijing, which wraps up on Monday.

“We are very firm believers in an open, rule-based trade that works,” Inter IKEA Group CEO Jon Abrahamsson Ring told CNN on the gatherings’ sidelines Sunday.

“We believe that trade is something very positive and actually enables scale, enables that we can take advantage of comparable advantages globally,” he said. “We believe that trade will be a key enabler for some of these important transformations that need to be done now in sustainability, affordability, etc.”

“The short-term disruptions demand immediate intention, but the longer-term shifts – in technology, sustainability, geopolitics – are going to reshape trade for decades to come,” he said.

For Chinese officials, the concerns and discussions surrounding these disruptions offered a chance to position China as a responsible global power and a strong advocate for globalization.

“As a responsible major country, China will firmly stand on the right side of history and the side of fairness and justice. In the wind and waves of the times, we should be righteous and walk the right path,” Premier Li said.