Preventing a "new cold war": Xi warns against going it alone

Monday, January 25, 2021

Prevent "New Cold War"
Xi warns strongly against going it alone

In a video session to mark the opening of the World Economic Forum, China's President Xi calls for more international cooperation and poses as an advocate of globalization. No country can solve the world's problems alone – and it becomes even clearer: Going it alone could have fatal consequences.

China's President Xi Jinping has warned political and economic leaders of a "new Cold War". Such a confrontation will "end in a dead end," said Xi in a digitally broadcast address to the participants at this year's World Economic Forum (WEF).

Without naming the US directly, Xi posed as a defender of multilateralism and globalization. The formation of small cliques, a "new cold war" being set in motion, and threats and intimidation of others would only drive the world into division, warned Xi. He cited the disruption of supply chains and sanctions aimed at isolation as examples.

In view of the corona pandemic, Xi called for barriers to trade, investment and technological exchange to be dismantled in his 25-minute speech. Better cooperation is needed, said the head of state. The global recovery from the corona pandemic is still "quite shaky" and the outlook is uncertain. "We should build an open world economy, reject discriminatory and exclusive standards, rules and systems," demanded Xi.

The President sees a key role in the G20, the international forum of the largest industrialized and emerging countries. The group should advocate "close macroeconomic policy coordination". It should be used as the "main forum" for global economic governance.

For the first time, more direct investment flows into China than into the USA

China got through the crisis year 2020 comparatively well. The gross domestic product increased by 2.3 percent. This is the worst performance since 1976, but no other large country has achieved growth. For comparison: According to an initial estimate, the German economy slumped by 5.0 percent. China also replaced the USA as the largest recipient of foreign direct investment for the first time. In the past year, 163 billion dollars flowed into the People's Republic, according to the report of the UN Conference on Trade and Development. The US only recorded inflows of $ 134 billion.

This time, the WEF in Davos, Switzerland, is taking place completely digitally. During the exchange, where hundreds of representatives of the global political and business elite usually meet, there should still be important debates on the economic and social recovery after the coronavirus pandemic until Friday. Chancellor Angela Merkel will give a speech on Tuesday.