Global Trade at Risk as Chinese Premier Warns of Supply Chain Fragmentation

As reported by Anadolu Agency, Chinese Premier Li Qiang has issued a strong warning about the state of global trade and investment. Speaking at the 16th Annual Meeting of the New Champions, also known as the Summer Davos Forum, held in Tianjin, northern China, he said that the international economic landscape is facing “profound change.” His remarks come at a time of increasing concern over supply chain disruptions and cross-border investment decline.

Li’s speech comes amid ongoing geopolitical shifts and rising protectionism. He described a world economy under pressure from multiple directions, including the fragmentation of production systems and weakening investor confidence across borders.

The Impact of Supply Chain Fragmentation

Premier Li pointed out that global supply chains are no longer operating as smoothly as they once did. In many industries, production has become regionalised. Trade patterns that once relied on efficiency and interdependence are now shifting due to political and economic tensions. These changes, he explained, are creating volatility and uncertainty for businesses and economies worldwide.

He warned that fragmented supply chains increase risks, raise costs, and reduce the overall resilience of the global economy. As companies seek to localise production or diversify suppliers, efficiency is being traded for control, and not always with positive results.

Decline in Cross-Border Investment

Alongside the fragmentation of production, Premier Li highlighted a significant decline in cross-border investment. This slowdown, he said, is not only a reflection of economic caution but also a signal that trust between nations is eroding.

He attributed much of this trend to recent policy shifts, especially the reciprocal tariffs introduced by the United States. Although these tariffs were suspended temporarily for 90 days, they have already created deep uncertainty in global markets. Investors are now more cautious, and long-term projects are being put on hold.

China’s Economic Confidence and Role in Recovery

Despite these challenges, Premier Li expressed confidence in China’s economic outlook. He affirmed that Beijing remains committed to doing “whatever it takes” to support global economic recovery and contribute to growth. He also pointed to China’s efforts to maintain open markets, encourage international cooperation, and promote high-quality development.

Li noted that the Global South, a term often used for emerging economies, is “rising rapidly.” These countries, he suggested, are becoming central players in shaping the future of global trade, finance, and investment. China, he said, is ready to work with these nations to create a more balanced, inclusive world economy.

A Call for Unity in Uncertain Times

Li’s speech was not just a warning but also a call to action. He urged world leaders to strengthen cooperation, rebuild trust, and resist the temptation of economic isolation. In his view, only through partnership can the world overcome the current wave of instability and fragmentation.

As the global economy faces this critical moment, his message is clear: the path forward requires shared effort, not separation.