China tones down its tone in Davos this time before Trump's tariffs

Article content

(Bloomberg) In 2017, weeks after Donald Trump's first presidential election victory, Xi Jinping became the first Chinese head of state to address the World Economic Forum in Davos, with Switzerland receiving applause as he railed against protectionism and declared that a trade war would harm both countries. sides.

Article content

Article content

This time, the Chinese presence at the annual Alpine conference of political, economic and financial leaders is much toned down following Trump's return to the White House. The country's top official at the forum is Vice Premier Ding Xuexiang. And unlike Xi's hardline language five years ago, Ding struck a conciliatory tone, pledging to rebalance trade, recognizing a major concern of Trump in promising to import more competitive and quality products and services.

Article content

The performance also marks a downgrade from last year, when Xi's top lieutenant, Premier Li Qiang, traveled to Davos to assure the global elite that China's economic management, the world's second largest economy, would ensure that its 5% growth target would be achieved. reached.

This year's gathering comes as Beijing awaits a full picture of the Trump administration's plans for bilateral relations. An apparent reprieve from US leaders on the much-anticipated rollout of tariffs lasted about 24 hours before he warned that a 10% levy could be imposed on China as early as February 1. The new president's threats so far have targeted the Americas' four main trading partners: Mexico, Canada, China and the European Union.

It was inevitable that China would want to play a lesser role because it simply could not know what the outcome of the election would be, said Suzhou executive vice chancellor John Quelch of Duke Kunshan University of China. Attending its 11th WEF in Davos, Quelch noted that Chinese government and business presence this year was moderate on public platforms such as panels.

Article content

Article content

Indeed, while companies with globally recognized names unveiled large banners and logos along the Davos promenade during the opening of the forum, one well-known company remained difficult to spot, protected behind a vast white awning: TikTok, The Beijing-based ByteDance Ltd.-owned social media giant now has a question mark over its U.S. operations.

A TikTok staff member welcomed visitors to the company's booth. But his somewhat out-of-sight status highlighted a quiet presence that was one of the two main takeaways for one of the leaders attending the forum. The second: a contingent of delegates rethinking how to approach business with the Asian nation as it enters a period of slower growth and geopolitical tensions. Despite the grim reality, there is a realization that China cannot simply be ignored, said the executive, who did not wish to be identified in private conversations.

Another Davos attendee also noted that the Chinese delegation seemed less visible than in previous years. Neither had plans to meet with officials, but both said behind-the-scenes exchanges between Chinese private companies and global corporations had remained active this year.

Article content

Uncertainty about what to expect from Trump was reflected in public discussions during the forum's first days. Vice Premier Ding, speaking before the US president issued his latest threat of 10% tariffs, warned against protectionism and trade wars, although he did not mention the United States by name.

Ding also recalled a Chinese proverb that what a man says and does reveals who he is, saying China is a responsible great country and a staunch defender and builder of international order. This claim was reiterated by former People's Bank of China deputy governor Zhu Min, who told Bloomberg TV that it was necessary to wait and see what Trump would do. You never know. For Trump, unpredictability is the key problem, he said.

Davos delegates struggled to agree on even the general direction of U.S.-China relations during Trump's second term.

Ian Bremmer of the Eurasian Groups strongly disagreed with the assessment by Graham Allison of the Harvard Kennedy School of Government that relations could surprise on the upside by this time next year. Allison argued that it was even difficult to classify Trump as a hawk.

Article content

Even though the Chinese presence has been degraded, the government's soft power charm offensive was still on display this week. An evening reception hosted by officials in the northern city of Tianjin drew hundreds of delegates waiting in long lines to sample local dishes like fermented soy sauce noodles and pancakes. stuffed with fried eggs.

The offers were so irresistible at a forum where tight schedules and hard-to-book rooms mean dining options can be few and far between, that Ukraine's first deputy prime minister, Yulia Svyrydenko, and her aides were among the last leaving as they enjoyed several rounds of pork ravioli.

With help from Ben Stupples.

(Updates with details on Mexico, Canada and the European Union. A previous version of this story corrected the spelling of Davos.)

Article content