China Seeks Balance in Trade

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, said Ding Xuexiang, the country’s vice premier, on Tuesday.

Addressing the 55th annual World Economic Forum (WEF) meeting in Davos, Ding emphasized that economic globalization is a process of mutual benefit and shared progress.

“Protectionism leads to nowhere, and there are no winners in a trade war,” Ding stated, advocating for multilateralism as the right path to maintain world peace and promote human development.

Chinese policymakers are intensifying efforts to stimulate a faltering economy, especially amid concerns over potential U.S. tariff hikes after the inauguration of President Donald Trump. Interestingly, Trump refrained from imposing tariffs on China on his first day back in the White House.

China welcomes more foreign investment, with Ding indicating a willingness to address challenges faced by both domestic and foreign companies.

Ding is leading an official government delegation at the WEF, making him the second-highest-ranking Chinese official to interact with global business and political elites since President Xi Jinping’s attendance in 2017.

Economic Openness

Last year, Chinese Premier Li Qiang attended the forum and emphasized China’s economic openness and potential for foreign investment. In his speech this year, Ding stated that the stable and healthy development of China’s economy would provide impetus for global economic growth.

A prolonged property crisis, high local government debt, and weak consumer demand have slowed China’s economic growth. Exports, one of the few bright spots, may face U.S. tariffs exceeding 60% if Trump follows through on campaign promises.

China’s GDP grew 5% in 2024, in line with the government’s target but accompanied by concerns over worsening living standards and deepening structural issues. Although the country aims to maintain a roughly 5% GDP growth target in 2025, analysts predict declines to 4.5% this year and 4.2% in 2026.

Additionally, businesses and investors remain anxious about geopolitical and regulatory uncertainties, with foreign direct investment in China having fallen 27.1% in 2024 compared to the previous year, totaling 826.3 billion yuan ($112.75 billion), according to official data.

Ding, aged 62, is the sixth highest-ranked leader in the Politburo Standing Committee under President Xi Jinping, having previously served as Xi’s chief of staff before his promotion in 2022.

Beyond messaging on the Chinese economy, investors are keenly observing for any closed-door meetings involving China’s delegates and global investors at the event.

WEF President and CEO Borge Brende mentioned that Trump, who has attended Davos twice before, would join the meeting “digitally” on Jan. 23, hinting at significant announcements regarding the Trump administration’s policy priorities.

Topics at Davos include global geopolitical and economic uncertainty, trade tensions, climate goals, and the role of AI in improving lives.