Global Business Leaders: Protectionism No Good to Anyone

Around 1,400 global business leaders and policy makers have gathered at the 'summer Davos' in the northeastern Chinese port city of Dalian to discuss, among other things, how to resist the lure of protectionism.Zhangcheng has more.

Reporter:

The U.S.'s decision to impose a tariff on tyres imported from China has caused quite a stir at the 2009 Summer Davos.One shared belief among politicians, scholars and businessmen is that protectionism does no one any good.David Schlesinger is the editor-in-chief of Reuters.

"It's really a worrying thing. I think the world needs to have, I believe, much more free trade."

Stephen S. Roach is Managing Director and Chief Economist of Morgan Stanley, a leading global financial services firm.

He said America's protectionist drive will damage the interests of both China's tyre exporters and US consumers. America's tyre industry may also loose out.

"My new book addresses many of those issues with respect to protectionist tendency in US trade policy in recent years. It's a general risk. It's important to face the issue and send a warning to Washington politicians that this is the cause they must avoid."

The World Trade Organization predicted earlier that global exports will drop by 12 percent in 2009, leading to concerns that new forms of protectionism are taking root.

Alejandro Jara is deputy director-general of the World Trade Organization.

"China has become the favorite target for many of measures applied by developed countries. So it's very important, not only to manage those disputes and use the law of the WTO, as a means to assist both parties to solve the disputes. "

At the forum, many business leaders expressed the belief that China's rapid economic recovery will play a positive role in helping the world out of its economic downturn.

Sarah Alade is the vice governer of the Central Bank of Nigeria.

"China has come with investment, which invested most sectors of the economy (in Nigeria). We also export a lot to China, so we see the Chinese influence as something that is going to be mutually beneficial."

She added that China is playing a responsive role to aid the world's economic recovery.

Earlier, China sent several trade and investment promotion missions to Europe and the United States to purchase goods and boost investment cooperation.

Two days ago, at the opening ceremony of the summit, China's Premier Wen Jiabao condemned protectionism, saying it would only delay world economic recovery and ultimately hurt the interests of businesses and people of all countries.

Zhangcheng, CRI News.