China: Protectionism a ‘serious hazard’ to global economy

HANOI: Chinese Vice-Premier Hu Chunhua yesterday called for a rejection of protectionism and said unilateral trade policies by some countries posed a “most serious hazard” to the world economy.

His comments come at a time of a worsening trade dispute between China and the United States, which has been pursuing measures widely regarded as protectionist under US President Donald Trump.

Leaders of Southeast Asian nations also voiced their support for multilateral pacts at a World Economic Forum event in Hanoi.

Even so, Singapore flagged there was no guarantee a broad agreement on the world’s biggest trade pact that the countries have been working on with China would be signed by year-end.

“Some countries’ protectionist and unilateral measures are gravely undermining the rules-based multilateral trading regime, posing a most serious hazard to the world economy,” Hu said in Hanoi at the World Economic Forum on the Association of Southeast Asian Nations.

“We must categorically reject protectionism and unilateralism, firmly support multilateralism, and uphold the world economy and multilateral trading regime,” he said.

Last week, Trump said he was ready to levy additional taxes on practically all Chinese imports, threatening duties on US$267 billion (RM1.1 trillion) of goods over and above planned tariffs on US$200 billion of Chinese products. China on Monday said it will respond if the US takes any new steps on trade.

If the US imposes additional tariffs of 25% on US$200 billion of Chinese goods, unemployment in China could increase by three million assuming Beijing does not take any counter measures, JPMorgan analysts wrote in a note.

If Washington moves ahead with 25% tariffs on all Chinese imports, about six million jobs in China could be affected, assuming no counter steps by China and no change in the value of the Chinese yuan, according to JP Morgan. – Reuters