Factory workers and farmers in China\u2019s rust belt first to hear how the country will respond to rising protectionism<\/b>
\nChinese President Xi Jinping says rising \u201cunilateralism and protectionism\u201d is forcing China to rely more on itself for development and \u201cit\u2019s not a bad thing\u201d, reflecting a determination to fight a protracted trade war with the US if necessary.
Xi, the most powerful Chinese leader in decades, said it was time for China to cut its dependence on foreign technologies and others in his first clear statement on how China would cope with the trade war.
Speaking from one of China\u2019s biggest state-owned factories, Xi emphasised the value of self-reliance, according to People\u2019s Daily, the mouthpiece of the ruling Communist Party.
\u201cInternationally, it\u2019s becoming more and more difficult [for China] to obtain advanced technologies and key know-how. Unilateralism and trade protectionism are rising, forcing us to adopt a self-reliant approach. This is not a bad thing,\u201d Xi said.
\u201cRising protectionism\u201d is a euphemistic reference to the tariff conflict between Beijing and Washington.
\u201cUltimately, China depends on itself\u201d for development, Xi said.
Xi\u2019s comments came two days after Washington escalated the trade war by imposing tariffs on another US$200 billion of Chinese imports and China retaliated by covering US$60 billion US products with tariffs.
Trade talks originally scheduled for this week were called off as Beijing refused to talk when the US \u201cis putting a knife to its throat\u201d.
The Chinese government on Monday issued a lengthy white paper blaming Washington for trade bullying against China and denied US allegations that China has been using unfair trade practices or engaging in \u201ctheft\u201d of technologies from US businesses.
Xi made the comments during a visit to China First Heavy Industries, a state-owned machinery maker in Qiqihar of the northeastern province of Heilongjiang \u2013 a factory which can trace its roots to the early 1950s, when it weathered China\u2019s worst economic days of isolation from the rest of the world.
Ding Yifan, a senior researcher with Tsinghua University\u2019s National Strategy Institute, said Xi\u2019s emphasis on \u201cself-reliance\u201d showed that Beijing was ready to dig in its heels.
\u201cThe spirit of self-reliance is the same as the old days,\u201d said Ding. \u201cBut the implications can be very different \u2013 if China can weather the trade war to secure a leading edge in technology and manufacturing, China will become number one and invincible.\u201d
Xi said China was a big country which must \u201cdepend on itself for food supply, depend on itself for economic development, and depend on itself for manufacturing\u201d.
According to pictures published by People\u2019s Daily, Xi addressed a group of uniformed workers and was accompanied by his aides, including vice-premier Liu He, China\u2019s chief trade negotiator.
Xi said China \u201chas never been so close\u201d to its two centenary goals to make China \u201ca moderately prosperous society\u201d by 2021, the 100th anniversary of the Chinese Communist Party, and \u201ca modern socialist country that is prosperous and strong\u201d by 2049, the 100th anniversary of the People\u2019s Republic.
As China moved closer to its national rejuvenation goal, Xi said the country had also never encountered \u201cso many challenges and difficulties\u201d, People\u2019s Daily reported.
Ding Shuang, chief China economist at Standard Chartered, said Xi’s speech \u201csounds like a political oath to boost public confidence during the tough time of trade war\u201d but it did not mean China would reverse its opening-up policy.
Ding said China had no choice but to rely more on itself in hi-tech fields since the doors for its acquisition of advanced technologies from others were closing.
Xi’s emphasis on self-reliance did not contradict Beijing’s advocacy of free trade and \u201cChina still needs to attract investment and apply its comparative advantages on exports,\u201d Ding said.
The China First Heavy Industries visit was one leg of Xi\u2019s tour to Heilongjiang, the province which borders Russia and is part of China\u2019s Manchurian rust-belt. It is a cradle for China\u2019s heavy industries and a \u201cbread basket\u201d for the whole country \u2013 the province accounts for half of China\u2019s output of soybean, a key commodity for which China relies on imports to meet its domestic need.
\u201cFor farmers in Heilongjiang, they can actually gain from the trade war,\u201d said Tsinghua University\u2019s Ding.
\u201cThe soybean and corn farming there were hit hard by imported products, now the significance of local output is growing amid a trade war.\u201d
Xi also toured the Qiche Group on Tuesday, a subsidiary of China\u2019s state-owned railway car maker CRRC Group, and visited the railway freight car testing and research centre there.
Xi said equipment manufacturing was vital for the country and China must make its manufacturing capabilities stronger. In addition, Xi said the \u201cBelt and Road Initiative\u201d would offer opportunities for the local machinery and equipment making industry, according to People\u2019s Daily.
On Monday, Xi visited one of the state-owned farms in Heilongjiang and inspected rice fields, according to the official Xinhua news agency.
He flagged the importance of self-reliance there as well, saying China must ensure a firm grip of its own \u201crice bowl\u201d, \u2013 and mainly rely on domestic output for its food supply.
Separately, China\u2019 s State Council on Wednesday decided to cut import tariffs on 1,585 items from November 1.
According to a government statement, China\u2019s average tariff level will be reduced to 7.5 per cent after the new round of cuts from 9.8 per cent on last year.
Among the cuts, the average tariff rate on electromechanical equipment imports will be reduced to 8.8 per cent from 12.2 per cent while tariffs on textiles and building materials will be cut to 8.4 per cent from 11.5 per cent.<\/p>\n