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China calls on countries to 'oppose decoupling' amid economic pressure

  • By Al Mayadeen English
  • Source: Agencies
  • 25 Jun 2024 14:12
3 Min Read

Li Qiang, the prime minister of China, stated during the World Economic Forum conference,"We should broadly open our minds, work closely together, abandon camp formations, (and) oppose decoupling,"

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  • Chinese Premier Li Qiang delivers his speech during the opening ceremony of the World Economic Forum Annual Meeting of the New Champions (AFP)
    Chinese Premier Li Qiang delivers his speech during the opening ceremony of the World Economic Forum Annual Meeting of the New Champions. (AFP)

Chinese Premier Li Qiang called on countries to "oppose decoupling" during his speech at the World Economic Forum conference on Monday, following economic tensions with the United States and the European Union. 

"We should broadly open our minds, work closely together, abandon camp formations, (and) oppose decoupling," he stated ahead of the European Union's preparation to impose tariffs of up to 38% on Chinese electric vehicles by July 4. The European Union said they implemented the tariffs due to the "unfair subsidization" of the Chinese EV industry on the allegation of their threat to European manufacturers. 

European Union Commission head Ursula von der Leyen insisted the bloc intends to "de-risk" the Chinese economy rather than decouple it. 

Li said in his speech that Chinese EVs, lithium batteries, and solar panels "first of all ensure domestic demand, while also enriching supply in the international market, easing inflationary pressure on the world and making a positive contribution by China to the global response to climate change."

Li urged for the "stability and smooth operation" of supply chains and the "liberalization and facilitation of trade and investment."

Last month, the United States significantly increased tariffs on $18 billion worth of Chinese imports, targeting electric vehicles, batteries, steel, and critical minerals sectors, affecting the relationship between the two nations. 

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According to a statement from the White House, the tariffs were imposed "to encourage China to eliminate its unfair trade practices regarding technology transfer, intellectual property, and innovation."

China warns of WTO lawsuit amid EU's electric car import restrictions

China's Commerce Ministry spokesperson, He Yadong, stated on June 13 that China maintains the option to initiate legal action through the World Trade Organization (WTO) if the EU imposes import restrictions on Chinese electric cars.

This comes after the European Commission's provisional decision on Wednesday to impose additional tariffs on imports of Chinese electric vehicles starting from July, citing alleged unfair subsidization, unless fruitful discussions with China lead to a satisfactory resolution.

"China reserves the right to file a lawsuit with the WTO and will adopt all the necessary measures to resolutely defend the legal rights and interests of the Chinese companies," He told a briefing, while further calling on the bloc to immediately lift its decision.

The Chinese Commerce Ministry said a day earlier, on June 12, that the EU's actions are not only infringing upon the legal rights and interests of Chinese electric car manufacturers but are also disrupting and distorting the global automotive supply chain, including that within the EU.

The ministry cautioned that such measures by the EU would not only impact the economic and trade cooperation atmosphere between Beijing and Brussels but also harm the interests of European consumers.

"It goes against the principles of market economy and international trade rules, undermines China-EU economic and trade cooperation, as well as the stability of the global automobile production and supply chain," Chinese Foreign Ministry spokesperson Lin Jian said.

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