Tariff Photo:VCG

At the China Development Forum (CDF) that kicked off on Sunday, tariffs and trade protectionism were at the forefront, with many participants - policymakers, global business leaders, members of academia and international organizations - stressing that rising barriers could fuel inflation and dampen growth.

In recent days, the US government has been pushing a fresh wave of tariffs worldwide. It will give a "reciprocal tariff number" on its trading partners on April 2, US Treasury Secretary Scott Bessent reportedly said.

Against this backdrop, many global business leaders voiced concerns over the protectionist US tariff and trade measures. 

"Tariffs are inflationary, and they are potentially recessionary as well. They do pose a challenge in the short term. The biggest problem for our clients is that they create uncertainty and risk, which makes businesses uncomfortable. So, they delay investment decisions and delay hiring," Martin Sorrell, founder and executive chairman of London-based S4 Capital, told the Global Times on Sunday at the CDF.

Sorrell noted that the biggest question is whether additional US tariffs will be for the long run or short term.

Michele Geraci, former undersecretary of state at the Italian Ministry of Economic Development, argued that tariffs would do little to address US economic issues, during an interview with the Global Times at the forum. "The US government aims to solve its trade deficits by imposing tariffs against its trade partners including the EU, Canada and China, but tariffs will not help solve the US trade deficit," said Geraci. 

"Over time, the US president will understand that Washington's policies actually hurt the US economy instead of the economies of other countries," Geraci added.

Global economic and social development is currently facing multiple challenges. The protectionism and policy fluctuations of certain Western countries have exacerbated geopolitical risks and economic fragmentation, Paul Chan Mo-po, Financial Secretary of Hong Kong Special Administrative Region, wrote in a blog published on Sunday. Chan is attending the CDF 2025 and will address a symposium.

Despite the impact of rising protectionism, China's unwavering commitment to opening-up will continue to inject stability into the world economy, Gao Lingyun, an expert at the Chinese Academy of Social Sciences, told the Global Times on Sunday. 

Gao believed that such openness helps mitigate the negative impacts of trade protectionism sweeping across different regions.

As the global market faces tariff threats and growing protectionism, whilst China is committed to opening wider, business representatives at the CDF underscored their commitment to China and pledged continued investment. 

Ola Källenius, chairman of the board at Mercedes-Benz Group AG, said that facing uncertainties in the global market, the Chinese government's further opening-up policies are especially significant, and Mercedes-Benz will continue to scale up its investment in China, according to the Beijing Daily. 

Earlier, the company announced that it would work closely with its Chinese partners, with total planned investments in the country exceeding 14 billion yuan ($1.9 billion).

On Saturday, Chinese Vice Premier He Lifeng, also a member of the Political Bureau of the Communist Party of China Central Committee, met with US Senator Steve Daines in Beijing. 

He said that China firmly opposes the politicization, weaponization and instrumentalization of economic and trade issues, and is willing to engage in candid dialogue with the US on the basis of mutual respect, equality and mutual benefits, according to the Xinhua News Agency.

Noting that China and the US have many common interests and broad space for cooperation, He said the two sides can become partners and friends to achieve mutual success and common prosperity for the benefit of both countries and the world.

Daines said that US-China relations are very important and the two sides should strengthen dialogue, and noted that he is willing to take more practical actions to that end, according to Xinhua.