DAVOS: European and Chinese leaders took turns defending global cooperation in Davos on Tuesday as the spectre of new trade wars looms following Donald Trump’s return to the White House.
Trump will make an online appearance at the World Economic Forum in Switzerland this week, but he has been the elephant in the room for the executives and leaders hobnobbing at the annual conference in the Swiss Alps.
In their speeches, European Commission President Ursula von der Leyen, Chinese Vice Premier Ding Xuexiang and German Chancellor Olaf Scholz offered visions of the world that are mirror opposites to those of the self-professed tariff-loving Trump.
“Protectionism leads nowhere and there are no winners in a trade war,” Ding said, without mentioning Trump directly.
Trump threatened on Monday to impose tariffs if Beijing rejected his proposal to keep Chinese-owned app TikTok online on condition that half of it is sold off.
Beijing, which is taking a cautious approach to Trump, said after the TikTok threat that it hoped the United States would provide a fair business environment for Chinese firms.
Meanwhile, von der Leyen took a conciliatory tone, saying the EU’s “first priority will be to engage early, discuss common interests and be ready to negotiate” with Trump.
“We will be pragmatic but we will always stand by our principles, to protect our interests and uphold our values,” she said.
The European Commission president also said that Europe “must engage constructively with China — to find solutions in our mutual interest” despite escalating trade tensions between the two.
Brussels has provoked Beijing’s ire with a raft of probes targeting state subsidies in the green tech sector, as well as imposing tariffs on Chinese electric cars.
In a veiled reference to the European Union measures, China’s vice premier warned against “erecting green barriers that could disrupt normal economic and trade cooperation”.
More trade deals
On the campaign trail, Donald Trump said he would impose extra customs duties on allies including the EU, as well as on China.
After his inauguration, he raised the possibility of imposing 25 per cent tariffs on Canada and Mexico.
