China Vice President Urges Governments to Address Their Domestic Problems
In speech at Davos, Wang Zishan says reducing income inequality at home, rather than seeking scapegoats abroad, should be priority
Governments should counter a rising backlash against globalization by reducing income inequality at home rather than seek scapegoats abroad, China’s vice president said in a speech at the World Economic Forum’s annual meeting Wednesday.
Over recent decades, companies have spread their activities and associated jobs across an increasing number of countries, a process known as globalization that relies on the free flow of goods, capital, and to a lesser extent people across national borders.
However, voters in a number of developed economies have in recent years elected leaders openly hostile to those flows and globalization, leading to a recent rise in tariffs and other barriers to trade.
Speaking in Davos, Chinese Vice President Wang Qishan said that protectionism and populism were on the rise, and they pose “serious challenges” to globalization. He said widening gaps between rich and poor within countries helped explain the backlash, and called on governments to address their domestic problems rather than transferring blame onto others.
“What we need to do is make the pie bigger while looking for ways to share it in a more equitable way,” he said. “The last thing we should do is to stop making the pie and just engage in a futile debate on how to divide it. Shifting blame for one’s own problems onto others will not resolve the problems.”
Mr. Wang didn’t mention the U.S. in his speech, but his comments come as the two countries seek ways to resolve a trade dispute that was initiated by U.S. President Trump, who cites China’s large trade surplus as evidence that the existing relationship is unfair.
China’s vice president also delivered a thinly veiled rebuttal of U.S. attacks on its technology companies and policies.
“It is imperative to respect national sovereignty and refrain from seeking technological hegemony,” Mr. Wang said. He condemned “conducting, shielding or protecting technology-enabled activities that undermine other countries’ national security.”
Mr. Qishan didn’t specify what activities he was referring to, but the remarks appeared to be a response to escalating U.S. pressure against China and its technology companies, notably Huawei Technologies Co.
The U.S. has discouraged the use of Chinese-made equipment, in particular Huawei’s, in U.S. telecommunications networks and pressed other countries to do the same. It is seeking the extradition of a top Huawei executive from Canada on allegations of violating sanctions against Iran. Forced transfer of technology to Chinese competitors is a central U.S. complaint in the countries’ current trade negotiations. China denies it forces foreign companies to transfer their technology, and Huawei denies that its equipment is used by the Chinese government to spy on its customers.
“We need to respect the independent choices of model of technology management and of public policies made by countries, and their right to participating in the global technological governance system as equals,” Mr. Wang said.
Answering questions following his speech, Mr. Wang said confrontation between China and the U.S. harms both nations.
“For the Chinese and U.S. economies, I believe they are in a state of mutual indispensability,” he said. “There has to be mutual benefit and win-win.”