DAVOS, Switzerland: EU chief Ursula von der Leyen declared Tuesday that Europe was ready to negotiate with the United States and seek to improve ties with China as Beijing warned against damaging trade wars in the face of Donald Trump’s protectionism.
Trump returned to the White House on Monday, and while he may not be physically present in the Swiss Alpine resort of Davos, he is the elephant in the room for the executives and leaders hobnobbing at the annual World Economic Forum.
With Beijing and Brussels facing some of the biggest risks from the return of self-professed tariff-loving Trump, China’s Vice Premier Ding Xuexiang and European Commission President Ursula von der Leyen took to the stage first at the forum.
“Protectionism leads nowhere and there are no winners in a trade war,” Ding said, without mentioning Trump directly.
China’s cautious approach
Trump threatened on Monday to impose tariffs if Beijing rejects his proposal to keep Chinese-owned app TikTok online on condition that half of it is sold off.
China is taking a cautious approach to Trump and after the TikTok threat, Beijing said it hoped the United States would provide a fair business environment for Chinese firms.
After Chinese President Xi Jinping spoke to Trump by phone on Friday, he said he hoped for a “good start” to relations with the new US administration.
Meanwhile, von der Leyen took a conciliatory tone. She said the EU’s “first priority will be to engage early, discuss common interests and be ready to negotiate” with Trump.
“We will be pragmatic but we will always stand by our principles, to protect our interests and uphold our values,” she said.
The European Commission president also stressed that Europe “must engage constructively with China -– to find solutions in our mutual interest” despite escalating trade tensions between the two.
Brussels has provoked Beijing’s ire with a raft of probes targeting state subsidies in the green tech sector, as well as slapping tariffs on Chinese electric cars.
ALSO READ: Trump Vows to Launch Tariffs War on Other Countries
In an apparent reference to the European Union measures, Ding warned against “erecting green barriers that could disrupt normal economic and trade cooperation”.
More trade deals
On the campaign trail, Trump said he would impose extra customs duties on allies including the EU, as well as on China.
After his inauguration, Trump raised the possibility of imposing 25-percent tariffs on Canada and Mexico.
Von der Leyen reiterated her commitment to free trade during her speech, pointing to recent EU deals with Switzerland, the South American bloc Mercosur and Mexico.
Trump announced the United States’ withdrawal from the Paris climate accord, which von de Leyen defended as the “best hope for all humanity” and vowed: “Europe will stay the course.”