Premier Li Qiang said at the 14th Annual Meeting of the New Champions (AMNC), also known as the Summer Davos Forum, in Tianjin that China has the confidence and capability to achieve steady economic growth, and he called on countries to look for more areas where mutual interests converge to make the global economic pie bigger. He also rejected de-risking.
De-risking and reducing interdependence is a false proposition as the global economy has already become intertwined. Whether there is a risk should not be judged by a government or an organization, but by concerned companies, Premier Li said, calling on the international community to firmly oppose the politicization of economic and trade issues and jointly maintain the stability and unimpeded flow of global industrial and supply chains. The Prime Ministers of Barbados, Vietnam and New Zealand attended the session and were also received by President Xi Jinping, as well as the Mongolian Prime Minister.
WTO Director General Ngozi Okonjo-Iweala told the panel that if two trading blocks were decoupled, it will cause the global GDP to shrink by 5% in the longer term, with developing countries being the biggest victims with double-digit losses. “So decoupling or fragmentation is something that the world simply cannot afford to have,” she noted. Chinese observers following the Davos forum said it is high time for China to warn the world about the danger of “de-risking” rhetoric as it is both deceptive and essentially government intervention in the market.
Hungarian Foreign Minister Peter Szijjarto also lashed out against the EU's de-risking approach to China at the Forum and called on the EU to become rational and fix ties with Beijing. He added that cutting off the world’s second-largest economy would be “a brutal suicide committed by the European economy”. “Our interest is to cooperate with China, unlike others. Hungary looks at China as a country with which cooperation brings a lot of potential benefit,” he added. Szijjarto said both sides could expand cooperation in electric cars, a “reborn industry” in which China has become a global leader, and one that could give impetus to Europe’s auto sector, which has traditionally been a “backbone” of its economy.
The annual forum, which is being held offline for the first time since the Covid-19 pandemic, is themed “Entrepreneurship: The Driving Force of the Global Economy” this year, and was held from June 27 through 29. The meeting brought together more than 1,500 officials and experts from over 90 countries. Premier Li Qiang said that China is on track to hit a growth target of around 5% for the whole year, after the country’s economy showed a clear momentum of rebound and improvement with 4.5% year-on-year GDP growth in the first quarter. “China wishes to work with all of you to firmly support economic globalization, uphold the market economy, support free trade and steer the world economy toward a more inclusive, resilient and sustainable future,” Li told the participants.
The Premier, who had just returned from his first overseas trip to Germany and France after taking office in March, said some Western countries are raising the rhetoric of “de-risking”. “Governments and relevant organizations should not overreach themselves, even less overstretch the concept of risk, or turn it into an ideological tool,” he said. Li underlined the importance of eliminating both visible and invisible barriers, deepening mutual understanding and strengthening dialogue to bridge differences and expand common ground. The absence of effective communication can easily lead to prejudice and even stereotypes, he said. Li noted that the power of humanity was proven when countries around the world looked out for each other during the fight against Covid-19. Confronted with a multitude of global challenges, such as climate change, debt risks, slowing growth and a wealth gap, countries must once again cherish the gains of cooperation, embrace the concept of win-win cooperation and work together to tackle the challenges, he said.
Premier Li Qiang said China is stepping up scientific and technological innovation, modernizing its industrial system and expanding domestic demand, and a new round of technological revolution and industrial transformation is expected. Multinationals are welcome to participate in this process, he added. Li said that China stands ready to work with all parties to develop cutting-edge technologies, expand new areas of cooperation and facilitate enterprises’ investment.
Klaus Schwab, Executive Chairman of the World Economic Forum (WEF), said during the opening plenary session that China has made remarkable achievements in economy, diplomacy and other areas. At a time of unprecedented changes and disruption, the world needs collaboration across sectors, regions, nations and cultures to create a more peaceful, inclusive, sustainable and resilient future, he said.
This overview is based on reports by the China Daily, the Global Times and the South China Morning Post.
