Chinese Premier Warns Against Economic Risks of Decoupling from Western Economies, Saying It Could Lead to a 'Vicious Cycle'

Chinese Premier Li Qiang cautioned against the economic risks of decoupling from Western economies amid growing international resistance to China's increasing electric vehicle exports. Li said that if countries only consider their own interests and ignore others, it will increase costs for all societies and the world. This could lead to a "vicious cycle" of competition over smaller economic opportunities. Li's remarks come as Canada considers tariffs on electric vehicles from China over concerns about unfair competition from state-directed overcapacity. The Biden administration and the European Union imposed higher tariffs on Chinese EV imports to protect domestic jobs and counteract Beijing's unfair subsidies.