Economic globalisation is a double-edged sword – Xi Jinping

Davos-Klosters, Switzerland – Chinese President Xi Jinping delivered a robust defence of globalization to business, government and civil society leaders in the opening plenary session of the 47th World Economic Forum Annual Meeting. Xi said China is committed to fulfill its international responsibilities and contribute to addressing global challenges, including climate change, the need for new drivers of economic growth and creating jobs in the face of the emerging technologies of the Fourth Industrial Revolution.

“Many of the problems troubling the world are not caused by economic globalization,” Xi pointed out, citing the global refugee crisis as an example. “There is no point in blaming economic globalization for the world’s problems, as that is not the case and will not help with solving the problems,” he said.

But, Xi warned, “We should recognize that economic globalization is a double-edged sword. The pitfalls of economic globalization have been laid bare and we need to take these seriously.” He added: “Nothing is perfect in the world. It is true that economic globalization has created new problems. But this is no justification to write off economic globalization altogether.” Xi recalled that China had at first doubted the wisdom of joining the World Trade Organization, but had bravely gone ahead with membership and determined that it was the right strategic choice. “If one is always afraid of the bracing storm, one will get drowned in the ocean sooner or later,” he said.

Xi called for efforts to rebalance economic globalization so that all people share in its benefits. This will require more effective international cooperation and new models of global governance, bold action and a commitment to avoid protectionism. “We should not develop the habit of retreating to the harbour whenever encountering a storm.” Referring to the threat of protectionism, he predicted that “nobody will emerge as a winner in a trade war.”

President Xi also stressed that China will continue its economic reforms and opening up, and will maintain its high level of economic growth while pursuing sustainable development. “We know only too well that there is no such thing as a free lunch in the world and that no pie will fall from the sky.”

Reacting to Xi’s speech, Klaus Schwab, the World Economic Forum’s Founder and Executive Chairman, told participants that it is crucial that globalization leads to a fair, innovative, open and inclusive world. “We cannot go back to old policies,” he said. “We cannot take recipes which may have worked in the old world but are not working anymore in the new world.”