China’s Xi warns that trade is at crossroads

BLOOMBERG NEWS

Chinese President Xi Jinping said the global economy is at a turning point as he prepares for a crucial meeting with Donald Trump this weekend.

Addressing the Spanish Senate on Wednesday, Xi said the world has to decide whether to continue working to support the global trading system. Failure to do so will lead to new barriers emerging between nations.

“We’re at a crossroads, in economic terms, where we’ll either continue with economic globalization and free trade or resort to unilateralism and protectionism,” Xi told lawmakers in Madrid. “The coordination and unity of the whole international community are needed to forge more consensus, to contribute more positive energy to help this world develop in the right direction.”

Xi is due to hold talks with Trump at the Group of 20 meeting in Buenos Aires this weekend, with the U.S. president threatening tariffs on $200 billion of Chinese goods unless they can strike a deal on revised terms of trade.

The Chinese leader hailed his country’s links with Spain during a state visit that culminated in a gala dinner hosted by King Felipe VI in Madrid’s Royal Palace. He also met with Prime Minister Pedro Sanchez for the signing of 18 commercial or institutional accords.

In a joint statement, both countries committed to a “global, open, balanced” economy. In his speech in the Senate, Xi pledged that China would seek to open itself to the outside world and facilitate market access in areas such as investment and protection of property rights.

“I give the greatest importance to relations between China and Spain,” Xi said.