China Tones It Down at Davos This Time Ahead of Trump Tariffs

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(Bloomberg) — In 2017, weeks after Donald Trump won his first presidential election, Xi Jinping became the first Chinese president to address the World Economic Forum in Davos, Switzerland — drawing applause as he criticized protectionism and declared that a trade war would be… Trade war. Hurt both sides.

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This time, China’s presence at the annual conference of political, business and financial leaders in the Alps has been toned down in the wake of Trump’s return to the White House. The country’s top official at the forum is Vice Premier Deng Xuexiang. In contrast to Xi’s sweeping language five years ago, Deng struck a conciliatory tone, pledging to rebalance trade – an acknowledgment of Trump’s main concern – by promising to import more competitive, quality products and services.

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The representation is also a downgrade from last year, when Xi’s top aide, Premier Li Qiang, made a trip to Davos to reassure the global elite that China’s economic management of the world’s second-largest economy would ensure the 5% growth target was met. receipt.

This year’s meeting comes as Beijing awaits the full picture of the Trump administration’s plans for bilateral relations. The US leader’s apparent delay in imposing the long-awaited tariffs lasted about 24 hours before he warned of the possibility of imposing a 10% tax on China on February 1. So far, the new president’s threats have targeted America’s top four trading partners: Mexico and Europe. Canada, China and the European Union.

“It was inevitable that China would want to play a lower key role, because it simply could not know what the outcome of the election would be,” said John Quelch, executive vice president of Suzhou University, China’s Duke Kunshan University. While attending the 11th World Economic Forum in Davos, Quelsch noted that the presence of the Chinese government and companies this year was weak on public platforms such as billboards.

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In fact, while companies with globally recognized names unveiled large banners and logos on storefronts up and down the promenade in Davos at the opening of the forum, there was one well-known company that remained difficult to spot, sheltered behind a broad white umbrella: TikTok, the social media giant. Social is owned by ByteDance Ltd. It is based in Beijing, which now has a question mark hanging over its US operations.

A TikTok employee welcomed visitors to the company’s booth. But the somewhat out-of-sight setting underscored the muted presence that served as one of two takeaways for one of the executives attending the forum. The second: a group of delegates rethinking how to do business with the Asian country as it enters a period of slowing growth and geopolitical tensions. The executive, who did not want to be identified while discussing the private talks, said that despite the troubling reality check, there is a realization that China cannot be ignored.

Another participant in Davos similarly noted that the Chinese delegation seemed less articulate than in previous years. Neither had any plans to meet with officials, but they said behind-the-scenes communication between Chinese private companies and global companies has remained active this year.

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

Deng also recalled the Chinese proverb that what a man says and does tells you who he is, saying that “China is a major responsible country, a resolute defender and builder of the international order.” This was echoed by former People’s Bank of China Deputy Governor Zhou 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 issue.

Delegates in Davos had difficulty agreeing even on the general direction of US-China relations in Trump’s second term.

Ian Bremmer of the Eurasia Group strongly disagrees with the assessment by Graham Allison of the Harvard Kennedy School of Government that relations will be heading in an “upward direction” by this time next year. Allison said it is difficult to classify Trump as a hawk.

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While the Chinese presence has been reduced, the magic of the government’s soft power was still in evidence this week. An evening reception hosted by officials from the northern city of Tianjin attracted hundreds of delegates who lined up to try local foods such as noodles with fermented soybean sauce and pancakes filled with fried eggs.

The offerings were so irresistible – in a forum where tight schedules and hard-to-book venues mean dining opportunities are scarce – that Ukrainian First Deputy Prime Minister Yulia Sviridenko and her aides were among the last to leave as they enjoyed several rounds of pork. Dumplings.

-With assistance from Ben Staples.

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

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