2 weeks Ago
WASHINGTON: Asian Infrastructure Investment Bank (AIIB) President Jin Liqun on Saturday (Oct 25) criticised advanced economies for creating trade barriers including for renewable energy goods, saying there was "no longer free trade" in the global economy. The United States last month announced steep tariff hikes on Chinese imports , including a 100 per cent duty on electric vehicles, to strengthen protections for strategic domestic industries from China's state-driven excess production capacity. The European Union and Canada also have announced new import tariffs on Chinese EVs, the latter matching the 100 per cent US duties.
Jin, who heads the China-led development bank, said trade spats between advanced and emerging economies have increased partly because manufacturers in the latter have boosted their competitiveness. Emerging economies that build up trade capacity and become competitive could be accused of over-capacity "no matter how much benefit you can bring to your trade partners," he said. "It's no longer free trade because you cannot rely on the WTO rules," Jin told the Group of Thirty (G30) International Banking Seminar.
"What worries us even more is the barriers to trade in low carbon and renewable energy products, which are rising even more faster, just when we need more of these green products to save the planet," he said. AIIB was set up by President Xi Jinping in 2016 as a Chinese alternative to the World Bank and other Western-led multilateral lenders. "I'm dismayed to see this spat over trade.
Free trade has brought huge benefits to so many countries since the end of second World War," he said. Jin also said the series of stimulus measures China's government has recently announced were different from those deployed during 2008-2009 in the aftermath of the global financial crisis, in that they were now "more focused." China had more scope to expand fiscal stimulus, and so has been more proactive in expanding spending and issuing special bonds to help local governments and businesses, he said.
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