China urges trade partners against tariffs as record surplus stirs tensions

China's Premier Li Qiang on Tuesday urged trading partners to reject rising protectionism, a day after the world's second-largest economy posted a record $1 trillion trade surplus driven by a rush of exports to non-U.S. markets.

Beijing is now facing broadening tensions with major trading partners beyond the U.S., which are calling on China to do more to reform its $19 trillion economy and reduce its dependence on exports to support growth.

China's second-ranking official pressed the heads of the IMF, World Bank, World Trade Organization and others to strengthen global governance in response to the growing number of economies imposing levies on imported goods, China included.

"Since the beginning of the year, the threat of tariffs has loomed over the global economy, with various trade restrictions proliferating and severely impacting global economic activity," Li told the "1+10 Dialogue" in Beijing, which also includes officials from the OECD and International Labour Organization.

"The mutually destructive consequences of tariffs are becoming increasingly apparent, and calls from all sides to uphold free trade are growing ever stronger," Li added.

Reuters