Share

China’s Li going to Davos to quell angst at slowdown

Washington - China is planning to send its highest-level delegation to the annual Alpine meeting of business, social and political leaders in Davos since the global recession of 2009.

The World Economic Forum in Davos takes place from January 21 to 24.

With its growth slowing and foreign business groups criticising China for discrimination against non-Chinese companies, the gathering in Switzerland offers a platform to reassure international decision-makers the second-largest economy is still open for business.

China’s contingent to the World Economic Forum will be led by Premier Li Keqiang, according to people with knowledge of the planning, who asked not to be named as the trip hasn’t been made public. Premier Wen Jiabao went in 2009, weeks after unveiling a $586bn stimulus to support what was then the world’s number four economic power.

“The year 2014 saw foreign companies and investors grow some doubt and concern about China’s openness,” said Zhang Wenkui, a senior researcher in Beijing at the Development Research Centre, a unit of the State Council, or cabinet. “Premier Li will likely make an effort to dispel that concern at a top economic forum, and show China’s unswerving determination on further reform and greater openness.”

Economic shift

Li, a 59-year-old who studied economics before rising through the Communist Party, took office two years ago. With President Xi Jinping, he has worked to shift China toward a more service- and consumption-based economy, away from debt-fuelled construction and foreign-demand dependent exports.

Xi has sought to dispel concern about the transition, which has left growth at risk of slipping below policy makers’ 7% target. In May, Xi said the nation was entering a “new normal” period. Even so, officials have approved plans to accelerate 300 infrastructure projects valued at 7trn yuan (R12.85 zillion) this year to address a weakening expansion, people with knowledge of the matter said this week.

Li’s Davos plans haven’t been completed, and the State Council Information Office said it didn’t have information to make public on the matter. Li previously attended Davos when he was vice premier in 2010.

“The World Economic Forum will be a good platform for the top Chinese leaders to show the global elite China is confident in its ’new normal’ economy,’’ said Han Meng, a senior researcher at the Institute of Economics, of the Chinese Academy of Social Sciences in Beijing. “There is nothing scary about a somewhat slowed, but more balanced economy.”

Watch: Outlook on 2015 Global Trends


Foreign concern

Also not scary: China’s antitrust initiatives, according to Li. The premier in September repeatedly sought to counter perceptions that the government was making it tougher for foreign companies to operate in the country.

US and European business groups issued reports last year expressing concern that foreign companies had faced the brunt of antitrust scrutiny. The American Chamber of Commerce in China called enforcement “selective and subjective.”

China will treat foreign and domestic companies equally, Li said at the World Economic Forum in Tianjin in September, an event attended by executives from companies including Qualcomm Inc. Qualcomm is one of the targets of China’s antitrust probes.

The premier also called on Wednesday for greater transparency in government-approval procedures, saying more openness can boost the credibility of governance in China, according to the official Xinhua News Agency.

Davos has rarely hosted Chinese premiers. Wen’s 2009 visit was the first such attendance since Li Peng went in 1992, when China’s relations with western nations were thawing after the 1989 crackdown on the Tiananmen democracy movement.

“There’s a noticeable pick up in number of Chinese delegates this year,” said Lin Boqiang, director of the China Centre of Energy Economics Research at Xiamen University, who has attended Davos for the past three years and is going again this year. “More Chinese businessmen and government officials want to be there” given Li’s plans, he said.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.97
-0.3%
Rand - Pound
23.97
-0.3%
Rand - Euro
20.51
-0.2%
Rand - Aus dollar
12.36
-0.1%
Rand - Yen
0.13
-0.4%
Platinum
906.75
+1.1%
Palladium
1,015.63
+1.4%
Gold
2,208.55
+0.6%
Silver
24.60
-0.2%
Brent Crude
86.09
-0.2%
Top 40
68,222
+0.8%
All Share
74,420
+0.7%
Resource 10
56,938
+2.3%
Industrial 25
103,869
+0.6%
Financial 15
16,500
-0.2%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders