MNI ANALYSIS: China Xi Defends Free Trade, Sidesteps Trump War

--Widespread Declaration Of Globalization Benefits; Little Specifics To Ease

Dispute

     BEIJING (MNI) - China's President Xi Jinping underlined his position as a

champion of globalization on Tuesday in a speech at the Boao forum, striking an

inclusive tone that some analysts saw as signs that a trade war with the U.S. is

de-escalating.

     Without once mentioning by name either the U.S. government or President

Donald Trump, Xi instead placed China as both a beneficiary and champion of

globalization, reform and innovation, while repeatedly emphasizing "mutual

win-win" and cooperation with other nations. 

     Xi, as he often did in his speeches, self-congratulated the Communist

Party's achievements in carrying out the country's 40-year sweeping reforms:

poverty reduction, economic rise, and contribution to global growth.  

     "China's reform not only profoundly changed China, it profoundly impacted

the world," Xi said. 

     --SUBTLE CRITICISM

     At several junctures, Xi made subtle criticisms of the backlash against

globalization  and other unilateral moves on trade and world affairs, though

without directly referencing the Trump administration. 

     As early as 2,500 years ago, the Chinese recognized "whomever is against

change and innovation" will be eliminated by history, Xi said. "China will never

threaten anyone, nor upend the current global system and seek hegemony," Xi

added.

     China will continue to champion multilateralism while shunning

self-interestedness, and pursue "Chinese-style" free trade, Xi said. The One

Belt, One Road initiative will grow to be the widest "platform of cooperation"

for global economic integration, he said.

     If they were meant to sooth nerves over a future trade dispute, President

Xi's comment certainly found fertile ground in the financial community.

     "China has showed sincerity and the confidence," Guotai Junan Securities

wrote in a report. "China and the U.S. are closer to coming to negotiations; the

market shouldn't be too pessimistic," the brokerage house said. 

     --SHORT ON DETAIL

     Xi, however, was short on details on how China may deliver on its promises

of boosting access to its vast markets. 

     Speaking at Davos in January, Xi's economic mastermind Liu He, today

sitting in the audience as a recently appointed vice premier, said China will

surprise the world this year with unprecedented pace of opening up. Other

officials have since said the specific measures would be unveiled during today's

Boao forum.

     Instead, Xi largely repeated what was hastily announced after Trump visited

Beijing in November: easing restrictions on foreign ownerships in banking,

securities, insurance, manufacturing of auto, planes and ships, a quicker

opening-up of the insurance sector and lowering of tariffs on consumer goods. 

     Xi however made a point to emphasize the reduction of duties on

automobiles, an issue that the Trump administration has griped about.

     --INTELLECTUAL PROPERTY

     Xi also addressed another target of criticism that is at the centre of the

current trade row with the U.S. China plans to re-establish a bureau of

intellectual property (IP) protection, to help the enforcement of regulation

against IP infringement, Xi said. 

     In either a sign that these promised changes won't come easily, or that

China needs to save face, Xi exerted that Beijing expects other nations to

equally protect China's IP interests. 

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

--MNI Beijing Bureau; +86 (10) 8532 5998; email: marissa.wang@marketnews.com

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