Chinese Premier Li Qiang has urged for increased communication and exchange to prevent misunderstandings during his speech at the opening of this year’s “Summer Davos” in Tianjin. The event, organized by the World Economic Forum, marks the first in-person gathering in three years due to the COVID-19 pandemic. The three-day summit will primarily focus on China’s position in the world and address concerns about the global economy in an increasingly divided world.
Premier Li highlighted the need to support globalization and deepen economic cooperation, countering the concept of “cutting reliance and de-risking” that has gained traction in the West. He argued that economic globalization has made the world economy an interconnected entity where countries rely on each other and achieve progress together. Li emphasized that this interdependence should be viewed as a positive aspect rather than a negative one.
The “Summer Davos” summit aligns with China’s self-branding as a “champion of multilateralism,” seeking to differentiate itself from the United States, where protectionist trade policies directed at China are on the rise. The US administration, led by President Joe Biden, is expected to finalize an executive order in the coming weeks to restrict outgoing US investment to China in critical sectors due to national security concerns. This order would complement a separate bill before the US Congress that aims to limit investment in industries such as pharmaceuticals and automobiles.
In an effort to mitigate tensions, US Treasury Secretary Janet Yellen may travel to China next month to meet her Chinese counterpart and engage in damage control discussions. Yellen has emphasized that US measures, including investment restrictions, are motivated by security and values rather than seeking a competitive economic advantage over Beijing. She has advocated for a “de-risking” approach that allows for continued trade between the US and China, rather than a disruptive decoupling that would further divide the two superpowers.
Both the Biden and Trump administrations have pursued restrictions on US companies doing business with Chinese entities linked to the military and state, as well as imposing tariffs on Chinese companies for alleged unfair practices. In response, Beijing has implemented its own tariffs and sanctions. However, recent developments indicate a potential détente, with increased face-to-face meetings between US and Chinese officials and discussions of a potential meeting between President Biden and Chinese President Xi Jinping at the upcoming Asia Pacific Economic Cooperation summit later this year.
