Xi said nothing about the problems faced by many companies in China.
(Photo: AP)
Berlin The contrast could hardly be stronger: China’s President Xi Jinping called for more international cooperation, economic openness and peaceful coexistence at the opening of the virtual “Davos Agenda”. “We have to open up and not seal ourselves off,” said Xi at the start of a week of events at the World Economic Forum (WEF), with which the organizers want to replace the annual meeting that fell victim to the pandemic.
With his pathos-laden speech, Xi seamlessly continued his first appearance at the World Economic Forum five years ago, when he presented himself as the guarantor of globalization.
However, the world economy is now more divided and nationalistic than at any time in the past 30 years. Globalization has slowed due to the pandemic and trade wars, international conflicts are increasing, and global threats like climate change are growing.
Xi and China have also contributed to all of this. The strict fight against the pandemic through a “zero Covid” policy has largely closed China off from the rest of the world. In addition, with its “Made in China 2025” initiative, Beijing is openly striving for self-sufficiency in many cutting-edge technologies, and Xi’s economic and political nationalism is fueling trade conflicts and increasing the risk of war against the breakaway province of Taiwan.
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The mood has also deteriorated significantly among foreign companies in China. A good 20 years after the country joined the World Trade Organization (WTO), Western companies are still complaining about massive subsidies for Chinese companies, distortion of competition by state-owned companies, forced technology transfer and theft of intellectual property.
Klaus Schwab (left), Founder and Executive Chairman of the World Economic Forum (WEF), speaks during a video conference with Xi Jinping, President of China, during the launch of the Davos Agenda 2022.
(Photo: dpa)
“I don’t expect any major opening in the next ten years,” said Jörg Wuttke, head of the EU Chamber of Commerce in China, at the end of last year. China will remain important, but the country’s importance will not be as great as it has been in recent years. On Tuesday, the German Chamber of Foreign Trade wants to report on the latest experiences of German companies in China.
Xi warns of interest rate turnaround in international monetary policy
Xi said nothing about the problems faced by many companies in China. Rather, the Chinese President called for greater international cooperation in the fight against the pandemic and promised to supply one billion vaccine doses to African countries.
At the same time, he warned of the effects of an interest rate turnaround in international monetary policy on poorer countries. According to the World Bank, many developing countries are highly indebted in foreign currencies and could face enormous payment difficulties if interest rates rise.
The Chinese called on the industrialized nations to combat the growing inequality between North and South in the global economy. “Nearly 800 million people are starving,” Xi said.
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According to him, things are going better economically in China itself: economic growth slowed down in the fourth quarter, but gross domestic product (GDP) increased by 8.1 percent in 2021, more than experts had expected. “We have full faith in our economy,” Xi said. However, economists expect that the growth rate will continue to decline this year.
Xi pledged that the Communist Party would continue “opening-up reforms” and that the market would continue to play an important role in China’s economy in the future. Beijing will also fulfill its climate promises, according to which the Middle Kingdom wants to reduce its CO2 emissions before 2030. China is the largest emitter of greenhouse gases and is planning over 40 new coal-fired power plants.
Olaf Scholz has his appearance at the WEF on Wednesday
The appearance of Xi is one of the highlights of the WEF’s heavily slashed “Davos Agenda”. Chancellor Olaf Scholz (SPD) will also have a virtual appearance at the WEF on Wednesday. A day later, EU Commission President Ursula von der Leyen follows.
After 2021, it is the second time that the forum has had to postpone its traditional annual meeting in Davos with more than 3000 executives from business, politics and society due to the pandemic. Forum founder Klaus Schwab announced that the meeting would be rescheduled for early summer.
More: China’s economy grows significantly more slowly in the fourth quarter – consumption collapses.