On Thursday, in a significant development, Chinese President Xi Jinping stated, Beijing will reduce its tariffs and expand imports of high-quality goods and services; he also vowed to push reforms and promote an innovation-driven growth model.
The development comes in the wake of the Bidden Administration, seen as being soft towards China, forming the government following the recent U.S. elections wherein allegations of widespread vote tampering was alleged.
“We will further reduce tariffs and institutional costs…, and expand imports of high-quality products and services from all countries,” said Xi in a keynote speech delivered via video at the APEC CEO Dialogues, ahead of a leaders’ virtual summit on the future of international cooperation on Friday.
Whereas the Trump Administration had taken pains to point out the vagaries in U.S.-China relations which mostly benefitted the latter, which he tried to offset through punitive trade tariffs, Xi has called for reversal of those measures and has instead called for increased integration of both economies.
Calling for a stronger policy coordination in the international community he said globalisation is “irreversible” and that China will not engage in “de-coupling”.
“Our new development pattern is not a closed domestic single circulation, but an open and mutually promoting domestic and international dual circulation,” said Xi.
He went on to add, the “dual circulation” strategy envisages that China’s next phase of development will depend mainly on “domestic circulation” or an internal cycle of production, distribution and consumption, backed by domestic technological innovation.
With reference to his bête noire – the Belt and road initiative, which has led many countries to pile on huge debts that are hard to pay back and are instead converted to long term land lease agreement which are advantageous to China, Xi said, Beijing will sign free trade agreements with more countries and will promote a high-quality Belt and Road initiative.
Laying out a blueprint for China’s five-year plan as well as key objectives for the next 15 years, XI said, his goal is to turn China into a “high income” nation by 2025 and advance it to a “moderately developed” nation by 2035.