Another country caught in the middle of U.S. President Trump’s tariff onslaught, Canada, has already moved closer into China’s orbit as a response. Ottawa, a longstanding U.S. ally, signed an agreement last week that would liberalize trade in agricultural goods and electric vehicles.
“Tariffs and trade war have no winners,” said He, praising the benefits of “free trade and economic globalization.” He said that the global trade system was facing its biggest challenge in years.
He called on countries to not turn their back on globalization and trade liberalization that had been instrumental in helping “many countries, including China” achieve “fast development.” The vice premier did acknowledge that globalization “wasn’t perfect” but said that it would be wrong for nations to retreat into “self-imposed isolation”.
He also addressed some common criticisms of China’s economic model, which generated a record trade surplus of nearly $1.2 trillion in 2025. In Europe, that enormous level of exports has stoked worries of China crushing European businesses across a range of industries, including the automotive sector.
The vice premier insisted that China wasn’t only seeking to export goods abroad, but also wanted to be the “world’s market.” But, he added: “When China wants to buy, other countries don’t want to sell.” The U.S. has imposed restrictions on the sale to China of cutting-edge microchips used in AI.
Beijing is trying to support domestic demand, putting it at the top of its economic agenda, He said. However, household consumption, as a share of GDP, has been on a downward trend for decades and was still less than 40 percent last year, compared to a global average of over 60 percent, according to World Bank data.
Many economists arguee that an increase in household income could both help China absorb its own manufacturing surplus, dampening exports, and create more demand for goods produced abroad — for example for European luxury items.
“We encourage businesses from around the world to seize the opportunities presented by our expanding domestic demand, provide more and better products and services, and further explore China’s consumer market,” said He. “China will open its door still wider to the world.”