Standing out for the right reasons
17 April 2018
It is ironic that the president of a communist country is now the leading voice in support of free trade and globalisation, but this is the upside-down world we live in now. In a widely anticipated speech, President Xi Jinping of China promised to further open up the world’s second largest economy to participation by foreign firms and to lower tariffs, including US-produced cars. He warned against a “Cold War mentality” and while there was nothing much new in his speech, it did calm investors’ nerves after weeks of talk of trade wars. So far it is still just talk, and world trade is largely unimpeded. The World Trade Organisation (WTO) last week forecast 4.4% growth in world trade volumes this year, after growth rose to 4.7% in 2017, the best performance in six years. However, the WTO warned that tit-for-tat trade retaliation could dent business confidence and discourage investment.