Beijing: China’s Premier Li Qiang pledged on Sunday that the country will remain committed to economic globalisation, despite growing global fragmentation and trade tensions. Speaking at the China Development Forum in Beijing, Li’s remarks appeared to indirectly address renewed trade turmoil, particularly tariffs imposed by former US President Donald Trump.

“China will firmly stand on the correct side of history, that of fairness and justice, and act in a righteous manner amid the rough waters of the times,” Li stated during the forum’s opening session. He emphasised China’s commitment to multilateralism and vowed that the country would “strive to be a force for stability and certainty.”

The annual gathering of global business leaders and policymakers comes as China faces significant economic headwinds. Recent weeks have seen Trump announce multiple rounds of tariffs on Chinese goods, reigniting fears of a trade war that could strain China’s economic recovery efforts. Despite these challenges, Li reiterated China’s resolve to "adhere to the correct direction of economic globalisation."

Prominent international figures, including Apple CEO Tim Cook, attended the forum, underscoring the global interest in China’s economic direction.

Li warned that “global economic fragmentation is intensifying,” and that “instability and uncertainty are on the rise,” a nod to escalating trade disputes. Despite these tensions, Beijing has signalled an openness to dialogue with Washington. Recent diplomatic engagements, including US Senator Steve Daines’ meetings with Chinese officials such as Vice Premier He Lifeng, are seen as attempts to ease strained relations.

Daines’ visit, which included talks with Premier Li, reportedly touched on sensitive issues, including the cross-border flow of fentanyl and its precursor chemicals into the United States. Trump has cited China’s role in the fentanyl crisis as justification for his tariff measures. Beijing, however, maintains that it enforces strict controls on drug production and argues the fentanyl issue is largely an American problem.

Vice Premier He Lifeng remarked during his meeting with Daines that China “firmly opposes the politicisation, weaponisation, and instrumentalisation of economic and trade issues.” He also expressed a willingness for “candid dialogue” with the US, noting the two countries share “many common interests and broad space for cooperation.”

The renewed trade friction comes at a precarious time for China’s economy. Despite exports reaching record highs last year, fresh tariffs threaten to undermine trade performance. Recently released data indicated an uneven recovery in the first two months of 2024, with modest growth in retail sales but a rise in unemployment to its highest level in two years.

China has set a GDP growth target of around five percent for this year, mirroring last year’s goal. However, many economists view this target as ambitious given the prevailing economic challenges and heightened geopolitical tensions.