China keeps low profile in Davos in pursuit of Western investment

By Selena Li DAVOS, Switzerland, Jan 23 (Reuters) - China’s low-key approach in Davos this year could not have been more different to that of the United States, with some business leaders saying Beijing stands to benefit from the Trump administration’s clash with Europe over Greenland. Yet many challenges and implementation obstacles lie ahead for China if it is to become a trusted partner for the European Union as the 27-member bloc tries to reduce its U.S. reliance. China is seen “controlling the dynamic through stillness”, a senior global business leader told Reuters, a reference to a move from The Art of War, where you wait patiently for your enemy to exhaust themselves on the battlefield. Beijing sent Vice-Premier He Lifeng to this year’s World Economic Forum annual meeting in the Swiss mountain resort. His speech, which was brief compared with U.S. President Donald Trump’s address to the meeting, underscored China’s willingness to buy more goods and services from foreign companies, rather than seeking a trade surplus. Yet China still ships its manufacturing over-capacity, predominantly in the electronic vehicle industry and other sectors, to foreign markets, for which there is no instant solution, the senior executive at a global bank added. While Trump hosted dozens of global business leaders at a reception, China’s lunch with Western executives was a more intimate affair and the message a simple “We are open for business”, said a senior banker who was briefed on it. ”(It will) just watch all the chaos happening all over the world, and steer its own course, China will win,” a global business founder told Reuters this week in Davos. Canadian Prime Minister Mark Carney called the world’s second largest economy a “reliable and predictable partner” during his recent visit and in Davos encouraged EU leaders to seek investment from China. Britain and China are working towards reviving the ‘Golden Era’ business dialogue during British Prime Minister Keir Starmer’s visit next week, Reuters reported, citing sources. Finnish Prime Minister Petteri Orpo is also scheduled to visit China, with a business delegation spanning resources, manufacturing, resources and the food sector. China has learned from the mistakes it made three years ago, when it a series of crackdowns on real estate, tech firms and education dampened confidence and has tried to be more steady and predictable, while the U.S. has become less so, said a senior executive running a multinational financial company. However, China’s dwindling presence on the main street in Davos this year coincides with growth hitting a three-year low, with Beijing’s messaging on boosting consumption yet to kick in.