'No one wins from a trade war', says Chinese President Xi Jinping

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'No one wins from a trade war', says Chinese President Xi Jinping

As the world awaits what a Donald Trump presidency in the U.S. will mean for international markets and geopolitics, Chinese President Xi Jinping has made a call for calm and a 'redoubling' of efforts to enhance international trade connectivity.

Speaking at the World Economic Forum in Davos, Switzerland today, Xi said mankind had become a close-knit community with a shared future, with extensive converging interests that were mutually dependent.

"We should commit ourselves to growing an open global economy to share opportunities and interests through opening-up and achieve win-win outcomes," he said.

"One should not just retreat to the harbor when encountering a storm, for this will never get us to the other shore of the ocean." 

The ocean on everybody's minds right now is the Pacific, and particularly the South China Sea where China has built man-made islands with military capabilities. 

Trump's nomination for Secretary of State, Rex Tillerson, has likened China's moves in the region to Russia's annexation of the Crimea in 2014 and has threatened to deny China access to the disputed territory.

Chinese state-run press outlets have reported if the U.S. were to actually make such moves it would lead to a large-scale war between the two countries.

But in Xi's address the main concern was the likelihood of a trade war, which is also a possibility if Trump follows through with his campaign promises regarding tariffs with China and the U.S.-China relationship.

"We must redouble efforts to develop global connectivity to enable all countries to achieve inter-connected growth and share prosperity," Xi said.

"We must remain committed to developing global free trade and investment, promote trade and investment liberalization and facilitation through opening-up and say no to protectionism.

"Pursuing protectionism is like locking oneself in a dark room. While wind and rain may be kept outside, that dark room will also block light and air. No one will emerge as a winner in a trade war."



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