In a recent address to international executives at the “Summer Davos” forum in Dalian, Chinese Premier Li Qiang expressed concerns over the growing trend of economic decoupling from the West. He defended China against accusations of dumping products like electric vehicles (EVs) and solar panels on global markets due to overcapacity in key green industries.
Li warned that pursuing only one’s self-interests and engaging in economic decoupling would result in higher operating costs for society and the world, leading to a vicious cycle of countries competing for a shrinking economic “cake.”
This statement from China’s second most powerful leader comes as Canada considers imposing tariffs on Chinese EVs, citing unfair competition. Last month, the Biden administration also quadrupled tariffs on Chinese EV imports to protect American jobs and manufacturing.
The challenges facing China’s EV makers have intensified as the European Union announced provisional tariffs on Chinese EVs, accusing Beijing of unfair support for companies that undercut European carmakers. Talks have begun to negotiate a compromise before the tariffs take full effect in November.
China’s trade woes are compounded by a sluggish economy, especially in the real estate sector. Despite these challenges, Li remains optimistic about China’s economic recovery, highlighting strong growth in the first quarter and expressing confidence in achieving an annual growth target of approximately 5%.