China goes big in Davos – and here’s why
Today we will see through this moment looking glass in Davos.
The largest communist party in the world’s leader take the stage at the World Economic Forum (Davos) in the Swiss ski resort of Davos are defending the wonders of globalization and free trade.
At the same time as the United States – the home of capitalism – has a new president, saying that there needs to be tore up the current free trade rules.
Dragon is here to embrace the rich annual festival in Switzerland.
And it is keen to be seen as a member of the club.
President-elect Donald Trump wants to take a baseball bat to club and one new building.
“The road to prosperity.”
Chinese President Xi Jinping is the first Chinese chairman to visit the World Economic Forum.
It is likely to be an uncompromising message.
After Chinese officials against the “nativism” warned last week – in a direct reference to Mr. Trump – it is expected to say that global trade liberalization has brought prosperity and that the moves against her will only hurt economic growth, Mr. Shi.
Yes, it may be a nod to the need for globalization to be seen as working for the benefit of all.
But it will be clear that more trade is the way to prosperity for Asia and the Western economies.
China is making a very key point by visiting Mr. Shi at the World Economic Forum.
With the other leaders, especially Angela Merkel, the German Chancellor, stay away, China has the largest delegation crowd ever.
Business leaders such as Jack Ma – the founder of the global Internet giant Alibaba – are in Davos, as Wang Jianlin, and the last of the richest men and head of real estate developer Dalian Wanda China.
The message is clear.
America may begin to look inward, but China is seeking to extend its influence, and the path that was chosen is the economy.
A big boost at the World Economic Forum, and the launch of infrastructure Asian investment bank to rival the US-dominated World Bank, and the revival of the “Silk Road” trade corridor from Asia to the Middle East and Europe – all point in one direction, and it’s about the enthusiasm Mr. Shi for more expansionist China.
Economy and practiced as a tool to influence.
World Economic Forum press full court of Mr. Shi comes at the same time that Mr. Trump has made his position clear from China.
Although we have yet to discover what the president-elect Trump actually when he takes office on Friday, he appointed one of the toughest hawks China, America, Peter Navarro, president for his new National Business Council, suggests mention of Trump change campaign.
And it accused the electoral campaign trump China’s currency manipulation and “rape” of America, saying that cheap Chinese exports have led to job losses in the United States.
I wrote about China’s response to extremely cold for this claim, and Mr. Navarro could mean Chinese / US relations here.
So far, Mr. Trump is talking tough.
A strong supporter, Anthony Scaramucci, which is scheduled to be contracted with another business advisers Mr. Trump, also will speak at Davos.
Instead of glorifying the virtues of the current structures of global trade, and he is likely to focus on what he sees as weaknesses.
In the past he had backed the criticisms of Mr. Navarro, who allow China to join the World Trade Organization under President Bill Clinton was a decision that US industry “did not recover from.”
In contrast with President Xi be stark.
It will reveal the escalating tension between the two biggest economies in the world – tension that will determine the health of the global economy over the next decade.