China’s leadership invited to the annual China Development Forum. Europeans are now much more in demand there than before. And Trump makes it easier for China to present itself as a reliable partner.
Magnolia and cherry trees bloom outside. On the Beijinger Diaoyutai complex, international guests stroll between large ponds and well-kept green meadows during their conference breaks.
Inside, the communist leadership revolves more than 80 bosses of large international corporations. These in turn have many good words left for the country, which is an important part of their business. You have come to the annual China Development Forum.
Many western company bosses present
The head of the US group Apple, Tim Cook, came, as did the CEO of the German automotive groups BMW and Mercedes. Siemens boss Roland Busch is also there, he is even co-chair of the forum this year. They sit in the front row between Chinese ministers.
On the stage, the Chinese Prime Minister Li Qiang speaks of the growing economy and of his country as an attractive location. And a time that is shaped by economic fragmentation and uncertainty: “And in this time it is all the more important that each of our countries opens its markets and that our companies and companies share their resources more closely”.
Problems of the Chinese economy
Li Qiang wants to present the Chinese leadership as a stable and reliable partner and on top of that as an advocate of free world trade and as an opponent of commercial barriers. The problems of the Chinese economy are left out: persistent real estate crisis, high youth unemployment, falling prices and despite the slightest signs of recent recovery a slow internal consumption – these are structural problems.
Political scientist Scott Kennedy, from the US Think Tank Center for Strategic and International Studies, says that Li Qiang’s goal is to convey the message of a growing economy. And also “that China represents a completely different attitude than the United States. He did not mention the United States, but when he spoke of unilateralism and protectionism, he said Washington,” says Kennedy.
You can get from a fair Economic environment speak?
At least with a few large corporations, the message seems to arrive that Li Qiang wants to set. Siemens boss Busch certifies in his speech directly after Li Qiang China’s leadership, continuously working for the same competitive conditions and a fair economic environment.
Industrial associations and governments of other countries have complained about the opposite: foreign companies were disadvantaged in the event of tenders, the legal framework is often unclear.
Nevertheless, Busch sees the will in China’s leadership to be attractive for foreign investors. The ARD he said in an interview,, That does not mean that it is good in all areas, but the direction of voice is definitely: “As far as the investments are concerned, China is one of the largest markets in the world in terms of industrial production, even the greatest. There are also competitions here. Without local presence, without local investments you will not be able to withstand and your market share cannot defend it.”
Foreign corporations are difficult
However, foreign direct investments in China have decreased in recent years. The business for foreign corporations has become increasingly difficult, domestic companies are increasingly picking up and increasing their market shares-including mechanical engineering, high-tech industry and in the automotive industry.
Nevertheless, the Chinese economy also needs foreign support, especially in times of a possibly ongoing Trump customs spiral. Some long-standing participants say that the Economic Forum was previously dominated by Americans, today there are more Europeans. This week, China’s President Xi Jinping apparently wants to meet group leaders personally. While only the bosses of US companies were invited last year, XI, reportedly, wants to receive European managers this year.
Expert Kennedy speaks of an interesting relationship in a world that experiences the USA that the United States changed dramatically and China does the same: “Those who do business in China at the same time looks at what happens in the USA and Washington. And the big variable that could change everything is not China, it is the USA. Economic representatives are not enthusiastic about China’s economic and security policy. Kennedy.
Does Trump play China in the cards?
With his unpredictability, US President Donald Trump makes his punitive tariffs – also against China – and the shift of political alliances of leadership in Beijing easier to have an attractive effect.
But it is not as simple as it does not seem to be as simple as it is, especially for the Europeans: “If China wants to use the chaos that Trump symbolizes for others successfully, it has to deal with the challenges of Europe. With the Xinjiang sanctions, with Ukraine and the concerns about overcapacity,” says Kennedy. “Trump offers China a great chance of standing as a responsible player. But China then has to deliver.”
Criticism of Europe of China
China’s friendship with Russia is still extremely critical in Europe, as well as human rights violations, including in the Chinese country parts Xinjiang and Tibet.
In addition, the EU Commission accuses China of promoting certain industries with excessive subsidies. Overcapacity and falling prices are the result. In order to protect domestic car companies, for example, the European Union has imposed compensatory tariffs against electric cars produced in China.
Exactly those criticized German car bosses at the Economic Forum. They fear disadvantage on the world’s largest car market. The pressure on her in China is already great. In this forum, you probably also expressly praise to Beijing between flowering magnolia and cherry trees.
