In a speech that struck all the right platitudes with this pro-globalization audience, Xi Jinping, the first Chinese president to attend Davos, slammed protectionism, voicing his support for free trade, and saying he has no intent to boost China's competitiveness through Yuan devaluation.
Here are the key highlights:
- China has no intention of boosting its competitiveness by devaluing the RMB, still less will it launch a currency
- China is expected to import $8TN of goods in the coming 5 years
- China to attract $600BN of foreign investments in 5 years
- China to make $750BN of outbound investments
- China will keep its door wide open
- Many of the problems troubling the world are not caused by economic globalization
- No one will emerge as a winner in a trade war
The international financial crisis a result of excessive pursuit of profits & lack of financial supervision, not globalization
He says protectionism is like to "locking oneself in a dark room"
We must face the challenges of climate change, aging population, and address the negative impact of automation on jobs
We must release its positive impact and rebalance the process of economic globalization
Lay out issues restraining global growth as follows: i) lack of robust driving forces, ii) inadequate governance system, iii) uneven global development
Globalization has become "Pandora's box" in eyes of many, but world economic problems not results of it
Economic globalization is a double-edged sword and we must adapt to and guide it
The most pressing task world faces now is to get global economy out of recession
World economy remains sluggish for quite some time while new path for growth remains elusive
Stresses importance of #innovation as a key driving force of growth for individual countries & global economy
Make a full use of opportunities brought by globalization, but work together before challenges
Bottom line: China, a fervent supporter of free trade and globalization due to its still quasi-mercantilist economy, has sided with the Davos elite and remains on collision course with Trump's protectionist policies. It is still unclear who, if anyone, will blink first.
