China Premier warns decoupling will lead to 'destructive spiral'

Chinese Premier Li Qiang warned of negative consequences for the world if nations part ways economically, while also countering criticism that his country's industrial policy has led to overcapacity.

The "regressive actions of decoupling" would only "drag the world into a destructive spiral where the fierce competition for a larger slice ends up in a diminishing pie," Li said at the World Economic Forum's meeting on Tuesday in the northeastern city of Dalian. "This is something we do not want to see."

Li also defended his nation against claims it is dumping cheap goods on the world, touting its prowess in science and technology for building "a broad stage for enterprises to pursue innovation and upgrade their products." "Exploration should not be seen as zero-sum game," he added.