China’s Li urges not to turn trade into a political or security issue

TIANJIN, China — Chinese Premier Li Qiang on Wednesday called on other countries to collaborate on trade, despite rising tariffs and other barriers.

“Globalization will not be reversed,” he said through an official English translation, as he called on all sides not to turn trade into a political or security issue.

Engaging in the international economy is a way of “reshaping the rules and order,” Li added, calling on countries to keep to the “right” path.

Li did not comment specifically on U.S. trade tensions or the Israel-Iran conflict. He was speaking at the opening plenary of the World Economic Forum’s annual conference in China, often dubbed “Summer Davos.”

Describing Li’s comment on “reshaping the rules and order” as “very interesting,” Adam Tooze, professor of history at Columbia University, said: “I think what we’re going to see is a pluralization.”

What’s needed is more about processes rather than focusing on who is setting the “order,” he told CNBC.

In the speech, Li referred to how more than 30 countries signed a “Convention on the Establishment of the International Organization for Mediation” in Hong Kong last month. He called it a way of using “the wisdom of the East in resolving international disputes.”

Li also maintained an upbeat view on the Chinese economy during the conference, and said authorities would implement measures to “make China a mega-sized consumption powerhouse” in addition to being one in manufacturing.

Louise Loo, lead economist for China at Oxford Economics, noted that Li was “quite confident in the organic growth momentum within China.”

“We still think that there are challenges [for China] this year, but I think it’s not as far-fetched as we thought before,” Loo told CNBC’s Emily Tan on The China Connection show.

“However punitive tariffs are, I think in the near term, it’s quite hard to decouple China from global supply chains, and that means we will continue to see China exports, at least, remain quite competitive, and that should support economic growth for the Chinese,” she added.

Singapore’s Prime Minister Lawrence Wong, Vietnam’s Prime Minister Pham Minh Chinh and Ecuadorian President Daniel Noboa Azín were among the top political leaders attending this year, according to a forum press release.

JD.com Founder and Chairman Liu Qiangdong and TCL Founder and Chairman Li Dongsheng were among the listed conference attendees.

In the last week, Li has met with the leaders of Singapore, Vietnam, New Zealand, Ecuador and Kyrgyzstan, according to Chinese state media.

— CNBC’s Victoria Yeo contributed to this report.