China Maintains Low Profile at Davos While Expanding Quiet Influence - Trance Living

China Maintains Low Profile at Davos While Expanding Quiet Influence

The 56th World Economic Forum concluded last week in Davos, Switzerland, with United States–European tensions dominating many headlines. China’s delegation, led by Vice Premier He Lifeng, drew comparatively modest attention, yet analysts in Beijing contend that the environment favors the country’s long-term bid for greater global influence.

Measured messaging from Beijing

Speaking on 19 January, He Lifeng urged fair treatment for Chinese companies and pointed to ongoing U.S.–China trade talks as proof that cooperation remains possible. He avoided commenting on the disputes occupying other leaders, choosing instead to promote business opportunities in the world’s second-largest economy.

Chinese observers called the forum a pivotal moment. Hai Zhao, director of international political studies at the Chinese Academy of Social Sciences, described 2026 as a “watershed” year in which nations could turn more decisively toward regional trade networks and away from an economic model centered on the United States.

Contrasting tones from other capitals

While He delivered a restrained appeal, several Western officials adopted sharper rhetoric. U.S. President Donald Trump criticized foreign counterparts before subsequently softening his stance on Greenland, the autonomous Danish territory he had suggested Washington might purchase. European Commission President Ursula von der Leyen outlined prospective trade deals, including a potential accord with India, and Canadian Prime Minister Mark Carney warned of what he called a rupture in the world order. Such remarks fed a narrative of widening policy gaps inside the trans-Atlantic alliance.

Analysts in China argue those gaps create strategic space for Beijing. Wei Wang, a researcher at Tianjin University of Commerce, said controversy over Greenland could hasten what he sees as Western acknowledgment that competition with China is faltering, reinforcing perceptions of power shifting eastward. Peter Alexander, managing director of Shanghai-based Z-Ben Advisors, wrote that nations retain limited leverage so long as Chinese factories dominate global production.

Trade data underscore manufacturing weight

China’s share of worldwide container shipments reached 37 percent during the first nine months of 2025, extending a steady climb. Beijing was also the first major economy to retaliate after Washington imposed its “Liberation Day” tariffs last April, positioning itself as a defender of open markets even while confronting its own trade barriers in the United States.

The two powers struck a one-year tariff truce in October, and President Trump is scheduled to visit Beijing in April. Nonetheless, duties remain high, and U.S. export controls continue to limit Chinese access to advanced technologies.

Diplomatic traffic to Beijing rises

Signs of shifting allegiances were visible well beyond the Swiss Alps. January alone brought a string of high-level visits to China that contrasted sharply with the relative isolation of the pandemic years. Irish Prime Minister Michael Martin made the first trip by an Irish leader in 14 years, South Korean President Lee Jae Myung arrived the same day, and Canadian Prime Minister Mark Carney followed soon after to unveil a strategic partnership spanning canola shipments and electric vehicles. U.K. Prime Minister Keir Starmer is expected in Beijing next week.

These visits help bolster corporate confidence, according to Jacob Cooke, chief executive of WPIC Marketing + Technologies, which assists foreign brands selling online in Asia. Cooke reported increased interest from non-American Western companies hoping to offset higher U.S. tariffs by expanding in the Chinese market. Demand from Chinese consumers remains solid for premium goods such as dietary supplements, pet products and sports equipment.

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Domestic headwinds persist

Despite international attention, China faces internal economic challenges. Vice Premier He listed stronger domestic demand—especially rising household income—as a priority for 2026. December retail sales grew just 0.9 percent year on year, the weakest pace since the height of the pandemic. Senior planners in Beijing have yet to outline concrete measures to lift disposable income in a state-dominated economy still navigating property-sector weakness and modest consumer sentiment.

Davos itself may be evolving

Global shifts are not limited to trade patterns. Larry Fink, chief executive of BlackRock and co-chair of this year’s forum, speculated that future gatherings might move beyond the Swiss Alps to cities such as Detroit, Dublin, Jakarta or Buenos Aires. His comments reflect a broader discussion about making the event more geographically inclusive. The World Economic Forum has held a summer session in China since 2007, with the next edition planned for the northeastern port city of Dalian.

Participants at last year’s summer forum noted a discernible tilt away from Western economies and toward emerging markets. That emphasis aligns with Beijing’s portrayal of itself as a stabilizing force amid fractious relations among long-standing allies.

Subtle shift in Washington’s tone

In Davos, President Trump adopted a milder approach toward Beijing than in some previous appearances. He emphasized a positive personal relationship with President Xi Jinping and said he had discontinued use of the term “China virus” at Xi’s request—a comment suggesting an effort to ease rhetorical tensions ahead of the planned April summit.

Outlook

Whether China’s understated presence at Davos translates into lasting diplomatic leverage remains uncertain, but the forum highlighted several trends: persistent U.S.–Europe frictions, growing diplomatic engagement with Beijing, and ongoing challenges inside China’s own economy. As regional partnerships multiply and major trading blocs reassess supply chains, Beijing’s strategy of steady messaging and incremental outreach appears aimed at positioning the country to benefit from a fragmenting world order.

For a broader perspective on recent World Economic Forum priorities, the official WEF website provides detailed summaries of each session.

Crédito da imagem: Denis Balibouse / Reuters

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