China takes court at Davos with its biggest presence in years

Speaking at a forum on Tuesday, Li, China’s second-in-command, said China was open for business, downplaying the recent crackdown on private industry that has scared investors and caused huge foreign exchange outflows. It seemed like there was.

“Choosing to invest in the Chinese market is not a risk, but an opportunity,” he said.

Mr. Lee then had lunch with a number of top business leaders, including the CEOs of JP Morgan, Bank of America, Standard Chartered, and Blackstone. The Governor of the People’s Bank of China was also present.

He was also joined by other high-level ministerial representatives, including Vice Foreign Minister Ma Zhaoxu and Commerce Minister Wang Wentao.

One group of Chinese delegates CNBC spoke to outside the main conference hall said they were attending to consider a wide range of issues, including “finance, trade and commerce.”

“This is the perfect time to tell China’s story,” said another Chinese technology executive.

China’s growing presence is reportedly causing confusion in Washington amid US concerns about Beijing’s growing global influence.

According to Politico, a US State Department document dated January 12 states that the Davos delegation to Beijing will include “10 secretaries of state,” prompting the White House to step up its charm offensive.

The document calls the visit a “pseudo state visit,” and the Chinese delegation is also scheduled to meet with a Swiss delegation in the capital Bern later this week. In response, Secretary of State Antony Blinken, who is also attending Davos, reportedly updated his schedule to include a meeting with Swiss officials.

The State Department did not immediately respond to CNBC’s request for comment on Blinken’s revised agenda.

This comes as relations between the United States and China become increasingly fractured amid national security concerns and rising geopolitical tensions, particularly over Taiwan and Russia. As a result, the US government has embarked on a “risk avoidance” strategy that includes trade restrictions on some critical technologies.

In his keynote speech, Lee pushed back against the move, saying technological innovation should not be used as a means to limit or contain other countries.

“The only way to keep competition healthy and bring out its full potential is to strengthen cooperation,” he said.

The comments illustrate the conflict that Switzerland and other countries, including Europe, face when choosing alliances in the conflict between the world’s two largest economies. Europe, a close ally of the United States, is similarly aware of the importance of the Chinese market to domestic companies.

Still, confidence in China has been dashed by the country’s long and strict coronavirus lockdown and widespread clampdown on key industries, including Big Tech.

Notably, President Xi’s inner circle in 2017 included Alibaba founder Jack Ma and real estate developer Dalian Wanda chairman Wang Jianlin, both of whom have since joined private companies. It has lost support from Chinese authorities amid a crackdown and the collapse of the domestic real estate market. .

As a result, Chinese companies now invest more abroad than foreign companies invest in China. Foreign investors withdrew $12 billion from China in the third quarter of 2023. Meanwhile, foreign investors have withdrawn about $25 billion from the Chinese stock market since August 2023.

Eurasia Group founder and chairman Ian Bremer said China’s increased presence at Davos was a sign that President Xi recognized the challenges China currently faces in restoring its reputation on the international stage. He said that it shows that

“It’s necessary for a country that is in deep economic slump,” Bremer told Semaphore.

“Mr. Xi recognizes that. [it] “This suggests that relations between the West and China will be better managed, at least in the short term,” he added.

The World Economic Forum did not respond to CNBC’s request for confirmation on the number of Chinese representatives in attendance.