DAVOS, Switzerland (Reuters) – China is not seeking a trade surplus and is willing to import more competitive and high-quality products and services to balance trade, Ding Xuexiang, the country’s vice premier, said on Tuesday.
Addressing the 55th annual World Economic Forum (WEF) meeting in Davos, Switzerland, Ding said economic globalisation was a process of mutual benefit and shared progress.
“Protectionism leads to nowhere, and there are no winners in a trade war,” Ding said, calling multilateralism “the right path for maintaining world peace and promoting human development”.
Chinese policymakers are intensifying efforts to stimulate a faltering economy in the face of concerns over potential U.S. tariff hikes following President Donald Trump’s inauguration on Monday.
Trump unexpectedly held off from imposing tariffs on China on his first day back in the White House.
China welcomed more investment by foreign companies in the country, Ding said, adding that China was willing to solve problems encountered by domestic and foreign firms.
Ding is leading an official government delegation at this week’s WEF, making him the second-highest-ranking Chinese official to rub shoulders with global business and political elites at the Davos summit since President Xi Jinping’s attendance in 2017.
ECONOMIC OPENNESS
Chinese Premier Li Qiang attended the forum last year when he delivered a keynote speech that also highlighted China’s economic openness and potential for foreign investment.
In his speech this year, Ding said the stable and healthy development of China’s economy would provide impetus for global economic development.
A prolonged property crisis, high local government debt and weak consumer demand has slowed China’s economic growth, and the country’s exports – one of the few bright spots – could soon face U.S. tariffs in excess of 60% if Trump delivers on his campaign pledges.
China’s GDP grew 5% in 2024, matching the government’s target, but in a lopsided fashion, with many people complaining of worsening living standards and raising concerns of deepening structural problems in 2025.
Although the country is expected to maintain a roughly 5% GDP growth target in 2025, analysts forecast growth to slow to 4.5% this year and 4.2% in 2026.
In addition, businesses and investors have longstanding worries about geopolitical and regulatory uncertainties. Foreign direct investment into China fell 27.1% in 2024 from the previous year to 826.3 billion yuan ($112.75 billion), official data showed.
Ding, 62, is the sixth highest-ranked leader in the Politburo Standing Committee, the top governing body led by President Xi Jinping. He was Xi’s chief of staff before being promoted to his current position in 2022 when Xi unveiled a leadership line-up stacked with loyalists.
Beyond the message on the Chinese economy, investors will be watching for any closed-door meetings on the sidelines of the event, notably between China’s official delegation and global investors and business executives.
WEF President and CEO Borge Brende said last week that Trump, who has twice previously attended Davos, will join “digitally” on Jan. 23, without giving further details. He said it would be a “very special moment” to learn about the Trump administration’s policy priorities.
Topics on the Davos agenda range from mounting global geopolitical and economic uncertainty to trade tensions, climate goals and how AI can help make lives better.