Decoupling with China carries risk of major disruptions: Rio Tinto chairman

Dominic Barton, chairman of leading global mining group Rio Tinto, warned against severing economic ties with China, saying it could lead to higher prices and slower development of new products and technologies, during an interview.

This comes as the White House announced on Tuesday new tariffs on imports of electric vehicles, solar cells and other clean-energy products from China, in a protectionist move widely believed to imperil the American ambition to enhance competitiveness and slash carbon emissions.

Many businesspersons are concerned that this newly announced tariff hike could damage global supply chains and lead to further decoupling of the U.S. from China.

During an interview with China Global Television Network (CGTN), Barton voiced his opposition to decoupling, calling it an impractical approach.

"I think there's some legitimate reasons for resilience in supply chains, and we learned that from COVID in a way, too. Everyone, every country wants to make sure they have some resiliency. But we also need to remember that the foundations of a lot of the growth we've had in the global economy and bringing hundreds of millions of people out of poverty, is because we've had global supply chains. So this idea that we're going to decouple is just ridiculous in my view. It's ridiculous and it'll have very severe consequences. We have to be very careful of that and how we think about that balance," he said.

Barton emphasized the importance of global collaboration for efficient and affordable production, especially in the shift toward sustainable energy and technologies.

"I think the challenge is we don't have a deep enough understanding, the common person like myself, of how supply chains work. We are incredibly linked in what we do. One of the consequences of a less global supply chain is higher inflation. It's just a fact. And higher inflation is not good for anyone," he said.

"Second thing is innovation. If we're going to make this energy transition, we need the materials. We also need to produce the equipment, the technology to be able to do the transition. The solar panels, the electric vehicles, the batteries, and it's in everyone's interest that we have the most efficient, low-cost way of doing it. And so these are factors that we need to make sure we keep in mind in a more politicized environment, because there are real consequences to changing that," Barton added.

Decoupling with China carries risk of major disruptions: Rio Tinto chairman

On his second official visit to China, Prime Minister of the Republic of Vanuatu Charlot Salwai expressed admiration for China's remarkable ability to balance preserving its cultural heritage with embracing innovative transformation.

Salwai paid an official visit to China from July 7 to 12. During his trip, he toured the southern province of Guangdong and explored the megacities of Beijing and Shanghai. His visit included tours of high-tech companies, a ride on a high-speed train, and a performance of traditional Cantonese opera.

In an interview with China Central Television Network (CCTV) aired on Friday, Salwai recounted his journey starting with a warm welcome that included enjoying Beijing Roast Duck, also known as Peking Duck -- a culinary delight introduced to him by the Chinese ambassador in Vanuatu.

"Many had to say. Peking Duck. Because we had it here on our arrival, so it was very tasty. And I understand that the Chinese ambassador in Vanuatu brought us to one of the traditional restaurants, small but beautiful," he said. The prime minister sees China's preservation of its culture as a vital lesson in understanding one's roots and the journey to the present day, acknowledging China's efforts to integrate cultural preservation with modernization.

"It's going to be my second official visit to China. I'm always impressed to see big changes and especially innovations made by China and especially the cities. Because a big impression is to see how China continues to maintain and keep its culture. Because I think it's the basis of everything -- to know where you come from and to understand where we are today. I feel that China is doing a lot to maintain its culture, but at the same time, doing, innovating to transform its culture,” Salwai said.

He also emphasized the importance of learning from China's sustainable development strategies.

"Today, it comes from a long way, some hardship, the government, and also the people of China. So, I'm impressed to see what is done, especially how China associates infrastructure development with nature. That's meant to keep, continue to keep the environment. It takes effort with the climate change by maintaining the ecosystem. I think it's something that, for a small country like Vanuatu, is important to learn. So, we are here. I'm here with my delegation to learn," Salwai said.

Vanuatu's PM commends China's cultural preservation, innovation amid fast growth