Xiconomics: China's vision for an open world economy in a turbulent era

BEIJING -- The 2026 World Economic Forum (WEF) Annual Meeting opened on Monday in the snowy Swiss resort of Davos. As global leaders reconvene in the Alpine town, the world economy is grappling with a familiar yet intensifying set of challenges, most notably a surge in protectionism, unilateralism and hegemonism.

Against this backdrop, the vision articulated by Chinese President Xi Jinping in multiple past speeches stands out, offering a clear and consistent compass for global economic governance, one that underscores openness and justice as fundamental anchors for stability and growth.

Translating that vision into concrete actions, China has stepped up development-oriented cooperation with other Global South countries, aligning with their shared concerns amid rising uncertainties and reinforcing calls for a more inclusive and predictable world economic order.

UNILATERALISM EXACTS HEAVY TOLL

Indeed, global economic growth faces significant headwinds as escalating unilateralism and protectionist measures dampen international trade and investment flows. Indermit Gill, the World Bank Group's chief economist, warned that the world economy is set to grow more slowly in the coming years than it did even in the troubled 1990s.

A significant factor behind this slowdown is a new round of tariffs and trade restrictions rolled out by Washington over the past year. As these measures accumulated, the average US import tariff surged from 2.4 percent in early 2025 to nearly 18 percent -- the highest level since the 1930s.

Such arbitrary tariffs are exacting a heavy toll. According to the United Nations Conference on Trade and Development (UNCTAD), US growth is expected to slow to 1.8 percent in 2025 and 1.5 percent in 2026, down from an average of 2.5 percent between 2015 and 2019. In Europe, US tariffs on steel, aluminum and automobiles have squeezed supply chains and weakened competitiveness, prompting firms to delay investment, with the UNCTAD forecasting EU growth at just 1.3 percent in 2025.

Furthermore, Washington has wielded tariffs as a tool of geopolitical coercion, not least by threatening to impose punitive tariffs on countries that do not support the US plan to "obtain" Greenland.

The weaponization of US financial tools and rising unilateralism have destabilized global markets, severely constraining the strategic autonomy of developing states, Herman Tiu Laurel, president of the Asian Century Philippines Strategic Studies Institute, a Manila-based think tank, told Xinhua.

World leaders have voiced opposition to such unilateral actions. Italian Prime Minister Giorgia Meloni has said, "Imposing new sanctions today would be a mistake," while Malaysian Prime Minister Anwar Ibrahim has warned against global trade being weaponised against weaker countries.

In a world fracturing along economic faultlines, Xi offered a clear compass. "Countries cannot thrive without an international environment of open cooperation, and no country can afford to retreat into self-imposed isolation," he reminded global audiences.

Addressing the 2025 Virtual BRICS Summit, he reinforced the point: "Economic globalization is an irresistible trend of history."