IMF: China preaches globalisation but practices trade barriers
David Lipton, first deputy managing director of the International Monetary Fund, makes the charges. Beijing must protect copyrights and reduce distortions linked to industrial overcapacity and policies that favour state enterprises. For its part, China claims to be a victim and a defender of globalisation.
Hong Kong (AsiaNews/Agencies) – China says it favours globalisation but should take a look at all the barriers it places on trade and investment, this according to David Lipton, first deputy managing director of the International Monetary Fund (IMF), who spoke about Beijing’s practices to defend its economy.
“China should be able to look at its own restrictions on trade and investment, which have generated criticism from some trading partners,” Lipton told the Asian Financial Forum on Monday.
“It also means protecting intellectual property rights and reducing distortions of industrial policy over capacity and policies that favour [state-owned enterprises].”
For some time, China has been criticised in Europe and the United States for its metal overproduction (especially iron and aluminium) that put companies and production in other countries at risk.
The lack of reciprocity in market openness has also been criticised. For instance, China has set up a monopoly in transactions in yuan with credit cards, entrusting it to Union Pay, a Chinese company.
The latter is accepted around the world, but foreign credit card companies are not yet accepted in China.
Then there is the economic aid – loans, and tax breaks on exports – the Chinese government gives state enterprises, which reduces the prices of Chinese products sold abroad.
Faced with the threats from US President Donald Trump to impose high taxes on Chinese products, Beijing has tried to depict itself as a victim, claiming to be the last defender of globalisation, as President Xi Jinping did in Davos last year in a warmly received speech (pictured) .
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