AIIB President Critiques Trade Barriers

By Leika Kihara

WASHINGTON (Reuters) – On Saturday, Asian Infrastructure Investment Bank (AIIB) President Jin Liqun criticized advanced economies for imposing trade barriers, especially affecting renewable energy goods, stating that free trade is no longer present in the global economy.

Last month, the United States implemented significant tariff increases on Chinese imports, which included a 100% duty on electric vehicles to protect its domestic industries from China’s excess production.

Similarly, the European Union and Canada have also announced new import tariffs on Chinese EVs, with Canada mirroring the U.S. duties.

Jin emphasized that trade tensions between advanced and emerging economies have escalated partly due to the rising competitiveness of manufacturers in the latter. He noted that emerging economies, which build trading capacity and competitiveness, risk being labeled as having over-capacity, regardless of their contributions to trade partnerships.

He remarked, “It’s no longer free trade, because you cannot rely on the WTO rules,” expressing particular concern regarding increasing barriers for trade in low-carbon and renewable energy products, just when the demand for green products is rising to help combat climate change.

The AIIB was established by President Xi Jinping in 2016 as a Chinese alternative to the World Bank and other Western-led financial institutions.

Jin expressed disappointment over the trade conflicts, highlighting that free trade has historically benefitted many countries since World War II.

He also noted that China’s recent government stimulus measures differ from those during the 2008-2009 global financial crisis, as they are now “more focused.” He mentioned that China has more room for fiscal expansion and has been more proactive in increasing spending and issuing special bonds to support local governments and businesses.