China will avoid decoupling with US, Europe: Xi

Kuala Lumpur, Nov 19: China’s President Xi Jinping on Thursday spurned suggestions that his country might decouple or separate itself from the US and other trading partners, amid tension with Washington and Europe over technology and security.
Speaking by video link from Beijing to a meeting of Asia-Pacific CEOs, Xi promised to open China’s market wider but announced no initiatives to respond to complaints the ruling Communist Party improperly subsidises and shields technology and other industries from foreign competitors.
Xi rejected suggestions Beijing might respond to US sanctions on its fledgling technology companies by trying to separate their industries from global trading partners. The ruling Communist Party has promoted its own standards for mobile phones and other technology, which would encourage customers that adopt them to use Chinese suppliers.
That has prompted fears world markets might split into smaller segments with incompatible industry standards, hurting productivity. “We will never go back in history by seeking to decouple or forming a ‘small circle’ to keep others out,” Xi said.
Thursday’s event came ahead of a meeting of Asia-Pacific Economic Cooperation leaders hosted by Malaysia.
The meeting Friday is due to be conducted via internet due to the pandemic. Xi’s comments followed Sunday’s signing of the world’s largest free trade agreement, the Regional Comprehensive Economic Partnership, by Beijing and 14 other Asian neighbours.
The Chinese-initiated RCEP appeals to other developing countries because it reduces barriers to trade in farm goods, manufactured goods and components, which make up most of their exports. It says little about trade in services and access for companies to operate in each other’s economies, which the United States and other developed countries want.
The Trump administration has cut off Chinese tech giant Huawei’s access to most US components and technology on security grounds. Washington has shut Huawei and a rival Chinese telecom equipment vendor, ZTE, out of the US market. (AP)