AIIB President Criticizes Trade Barriers of Developed Countries

Jin Liqun, President of the Asian Infrastructure Investment Bank (AIIB), criticized developed economies for creating trade barriers, particularly those affecting the trade of renewable energy goods. Jin argued that the principle of free trade is no longer being applied in the global economy.

During the Group of Thirty (G30) International Banking Seminar, Jin highlighted the significant increase in tariffs imposed by the U.S. on products imported from China last month. This increase includes a 100% tax levied on electric vehicles (EVs). This measure aims to protect strategic domestic industries against what is perceived as China's state-supported overproduction capacity. Similarly, the European Union and Canada have also imposed new tariffs on EVs imported from China, with Canada implementing a tax at the same level as the U.S.'s 100% tariff.

As the head of the development bank led by China, Jin noted that trade disputes between developed and developing economies have escalated as producers in developing economies have increased their competitiveness. He suggested that developing economies often face allegations of overcapacity, regardless of the benefits they can offer to trading partners when they become competitive.

Jin also expressed his concerns about the growing trade barriers to low-carbon and renewable energy products. He emphasized the need for such green products in the fight against climate change and expressed his frustration with trade disputes by recalling the significant benefits that free trade has provided to many countries since World War II.

Established in 2016 by Chinese President Xi Jinping as an alternative to Western-led multilateral lending institutions like the World Bank, the AIIB is observing changes in global trade dynamics. Jin further noted that the Chinese government recently announced a series of stimulus measures distinct from those used during the 2008-2009 global financial crisis. According to Jin, the current measures are more targeted, providing more maneuverability for China to expand its fiscal stimulus. This flexibility is being utilized to issue special bonds and support local governments and businesses.