China warns West against protectionism

DAVOS: China on Thursday tried to turn the debate on its frugal domestic consumption and over-dependence on exports by warning the West that the protectionist measures could exacerbate the economic crisis and slow down the recovery.

Addressing the World Economic Forum Annual Meeting, which is debating how the countries with large trade surpluses should increase their domestic consumption, Vice Premier of China's State Council Li Keqiang said his country's positive trade balance (trade deficit) dropped by USD 100 billion in 2009.

Li said the protectionist measures in the West can boomerang on them.

"Trade protectionist practice will only exacerbate the economic crisis, slow down the recovery process and ultimately harm the interest of the the very countries who apply such measures," Li said.

He said the international community should firmly fight against these measures. The Chinese Vice Premier tried to drive home the point that his country is not only producing for the world, but for the domestic demand as well.