Chinese Premier Li Qiang to Address Davos Amidst Struggling Economy
DAVOS, Switzerland – Chinese Premier Li Qiang is set to engage with global investors and politicians at the World Economic Forum in Davos on Tuesday, where he will address China’s ongoing economic challenges, including a sluggish post-pandemic recovery and a real estate downturn.
Li’s presence at Davos comes at a critical time, as overseas executives express concerns about China’s long-term growth prospects for the first time since it opened up to foreign investment four decades ago. As the most senior Chinese official to attend Davos since President Xi Jinping in 2017, Li aims to promote global cooperation, address risks, bridge developmental divides, and seek win-win outcomes, according to the Chinese state news agency Xinhua.
While Xinhua emphasizes China’s steady growth momentum and economic potential, recent actions have generated skepticism among foreign businesses. Anti-espionage laws, raids on consultancies and due diligence firms, and exit bans have raised concerns about the country’s business environment. Additionally, geopolitical tensions, tighter regulations, and a playing field favoring state-owned enterprises have contributed to a decline in foreign direct investment, with China experiencing its first quarterly deficit in this area since 1998.
The World Economic Forum expects over 2,800 leaders from 120 countries, including more than 60 heads of state, to participate in the annual meeting. Li’s speech on the economy will be closely watched, but investors also anticipate any bilateral meetings he may have with Middle Eastern leaders or U.S. Secretary of State Antony Blinken, who is also scheduled to attend.
In addition to domestic economic issues, China’s Foreign Minister Wang Yi called for a larger and more authoritative Israeli-Palestinian peace conference and a timetable for implementing a two-state solution. As the Gaza conflict escalated and the Red Sea became a new flashpoint, the presence of China, a Russian ally, was considered important during future peace meetings convened by Ukraine.
Li’s role as Premier traditionally involves overseeing the Chinese economy. However, in recent years, President Xi Jinping has exerted greater control and directed it towards a more statist approach. Li, a career bureaucrat, was announced as China’s No.2 in October of last year when Xi unveiled a leadership lineup dominated by loyalists.
With Li’s speech addressing China’s struggling economy on the horizon, international investors and leaders will observe closely in search of insights into the country’s future direction. Nevertheless, the concerns and challenges China faces, both domestically and internationally, make Li’s presence at Davos an important event for those seeking a clearer picture of China’s economic trajectory.
In summary, Premier Li Qiang’s address at Davos is poised to shed light on China’s economic struggles and provide an opportunity for global investors and leaders to better understand the nation’s long-term growth prospects. As China navigates a post-pandemic recovery and grapples with a real estate slump, concerns and skepticism from overseas executives have intensified. Against this backdrop, Li’s presence at Davos signifies China’s commitment to global cooperation and seeks to bridge developmental gaps while addressing various risks. As the premier rubs shoulders with global elites, the world awaits his insights and reassurances on China’s economic future.
