Davos, Switzerland. China took a low-key approach at the World Economic Forum this year, contrasting with the United States as business leaders said Beijing could benefit from the Trump administration’s clash with Europe over Greenland. Executives also said China faces challenges if it is to become a trusted partner for the European Union as the bloc seeks to reduce reliance on the United States.
China’s presence at the World Economic Forum
Beijing sent Vice-Premier He Lifeng to the annual meeting in the Swiss mountain resort. A senior global business leader described China as “controlling the dynamic through stillness,” referencing a move from The Art of War that stresses waiting for an opponent to exhaust themselves.
Trade and market messaging
He’s speech, described as brief compared with US President Donald Trump’s address, underscored China’s willingness to buy more goods and services from foreign companies rather than seeking a trade surplus. A senior banker briefed on China’s lunch with Western executives said the message was “We are open for business,” and described the gathering as more intimate than a reception hosted by Trump for dozens of global business leaders.
Concerns over over-capacity and implementation
A senior executive at a global bank said China continues to ship manufacturing over-capacity, predominantly in the electronic vehicle industry and other sectors, to foreign markets, adding there is no instant solution. Business leaders said obstacles and implementation challenges remain for China as the EU weighs its options.
Reactions from business and political leaders
A global business founder told Reuters in Davos that China would “watch all the chaos happening all over the world, and steer its own course,” adding, “China will win.” Canadian Prime Minister Mark Carney called China a “reliable and predictable partner” during a recent visit and in Davos encouraged EU leaders to seek investment from China.
UK-China business dialogue
Reuters reported, citing sources, that Britain and China are working toward reviving the ‘Golden Era’ business dialogue during British Prime Minister Keir Starmer’s visit next week.
What role should China play in Europe’s efforts to reduce reliance on the United States?