Xi reaffirms open China, denounces protectionism in rare speech

President Xi Jinping, in a rare public address to global business leaders at The Great Hall of the People in Beijing on Friday, sought to reaffirm China's commitment to open markets and denounced protectionist tariffs amid escalating global trade tensions.

Xi declared that China remains a prime destination for investment while forcefully denouncing emerging protectionist tariffs that threaten to fracture global trade.

Addressing the representatives of the international business community, Xi highlighted the significant contributions of foreign companies to China's economic development over the past decade. He cited the creation of millions of jobs, the transfer of advanced technologies and managerial expertise, and the integration of China into the global division of labour.

"China's door will only open wider to the world," Xi told the assembled executives, reiterating the country's "unwavering commitment" to reform and opening up.

“We are advancing Chinese modernization across the board. There is a big stage for business development, advanced market potentials, a steady economic outlook, and a secure environment. China is a fertile ground for investment."

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He highlighted the profitability of foreign investment in China, citing expansion and robust returns. "If you give me a peach, I will repay it with jade," Xi said, invoking a traditional Chinese proverb to emphasize mutual benefit and the reciprocal nature of economic engagement.

Xi noted the growth of foreign companies from single operations to large conglomerates and the higher-than-average profit margins they enjoy in the Chinese market.

He pointed to the substantial growth in foreign direct investment and patent applications, as well as the healthy profit margins enjoyed by foreign firms operating in China.

Addressing concerns about market access and fair competition, Xi pledged to "tackle issues facing the foreign business community."

He outlined plans to "expand opening up trials for cloud computing, biotechnology, and wholly foreign-owned hospitals," and to accelerate the opening of cultural, education, and internet-related sectors.

“We will move faster to open cultural, education, and the Internet-related sectors. At the same time, we will solve specific problems in market access. For example, some smaller gates remain closed behind an open main gate. This will allow foreign companies to enter and operate in the sectors we have opened up," Xi said.

“It is our consistent position that foreign companies in China should be guaranteed national treatment, and that there should be equal application of laws and equal status in treatment," Xi said, promising equal access to production factors.

He added, “The products coming from your china factories will enjoy equal opportunity to compete for government contracts under the law.” He addressed concerns about data flows, intellectual property, and regulatory transparency, pledging to "study them seriously and promptly resolve all problems as they come."

He reiterated the government's commitment to "building a first-rate business environment that is market-oriented, law-based, and internationalized."

In a direct rebuke to protectionist measures, Xi condemned the creation of "small yards with high fences," the politicization of business, and the use of tariffs as "tools and weapons." "Blowing out another's lamp won't make your own glow brighter," he warned. "Blocking another's path, and you will ultimately block your own."

He called for upholding the multilateral trading system, centered on the World Trade Organization, and denounced "unilateralism and protectionism" as "retrogressive moves." "We should jointly protect stable industrial and supply chains worldwide," he urged, warning against "decoupling or cutting up these chains."

Xi also addressed US-China relations, emphasizing the mutually beneficial nature of their economic ties. "The bilateral economic ties between China and the US are essentially mutually beneficial and win-win," he said, advocating for dialogue to manage trade frictions. “Business frictions should be properly managed through equal footed dialogue and consultation.”

The rare public address, delivered amidst rising global trade tensions, signals China's determination to maintain its position as a key player in the global economy and to counter the growing tide of protectionism.

Xi's made the assurances as the world grapples with US President Donald Trump's recent imposition of 25 per cent tariffs on imported cars and light trucks, a move widely condemned as a catalyst for a widening trade war.

Canadian Prime Minister Mark Carney and EU Commission President Ursula von der Leyen have both voiced strong opposition, threatening retaliatory measures and highlighting the potential for significant disruption to global supply chains.