Chinese Premier Li Qiang warns western countries over de-risking strategy, calls it a “false proposition”

The remarks are being seen as part of China's efforts to counter the narrative of a de-risking strategy that is growing popular in Europe. US President Joe Biden’s administration has already taken steps to reduce its dependency on China.

Li Qiang made the comments during his keynote address at a WEF event.

China’s Premier Li Qiang has criticised western leaders for their efforts to limit trade and business ties with his country and called the notion of de-risking a “false proposition” that could hamper international economic co-operation.

While criticising the politicisation of economic issues, Li Qiang said, “Governments should not over-reach themselves, still less stretch the concept of risk or turn it into an ideological tool.”

Li Qiang made the comments during his keynote address at a World Economic Forum (WEF) event in the Chinese coastal city of Tianjin on Tuesday.

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The Chinese Premier added, “In the West, some people are hyping up the so-called reduction of dependence and de-risking. I think to a certain extent, these two words to reduce dependence and risk are a false proposition because the development of economic globalisation is such that the world economy has become a common entity in which you and I are both intermingled."

Li Qiang urged the western countries to work with China in order to maintain a stable global supply chain. He contended that countries had to manage competition that was bound to arise in an open trading system.

The remarks are being seen as part of Beijing’s efforts to counter the narrative of a de-risking strategy that is growing popular in Europe.

The Chinese premier had made a similar pitch last week in France and Germany on his first overseas visit since coming to office in March.

European Union countries are considering whether to decouple their economies from the world’s second-largest economy in the face of hardening competition between the US and China.

European leaders have until now struggled to formulate a unified Sino-European strategy amid America’s changing strategies on trade ties with Beijing.

Italy is currently discussing a withdrawal from China's flagship project, the Belt and Road Initiative (BRI). At the same time, Eastern European countries are not impressed by Beijing's tacit support for Russian aggression in Ukraine.

US President Joe Biden’s administration has already taken steps to reduce its dependency on China. Washington is leading an international effort to clamp down on sales of advanced chipmaking technology to China. Countries like Japan and Netherlands have sided with the US in its efforts to curb the export of key technology to China.

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