China's Quiet Davos Strategy Aims to Win Over Europe

At this year's World Economic Forum in Davos, China and the United States presented a study in contrasts. While the Trump administration clashed with European leaders over Greenland, Beijing adopted a noticeably low-key approach that some business leaders believe could work to its advantage.

China now faces the challenge of positioning itself as a trusted partner for the European Union as the 27-member bloc seeks to reduce its reliance on the U.S. However, significant obstacles to implementation remain.

A Strategy of 'Stillness' Amid Global Chaos

One senior global business leader, speaking to Reuters, described Beijing's approach as "controlling the dynamic through stillness." This reference to Sun Tzu's The Art of War suggests a strategy of patiently waiting for an adversary to exhaust themselves.

"China will win," a global business founder said in Davos, predicting the country would "just watch all the chaos happening all over the world, and steer its own course."

Beijing sent Vice-Premier He Lifeng to represent the country. His speech was brief compared to the address given by U.S. President Donald Trump. While Trump hosted a large reception for dozens of global business leaders, China’s lunch with Western executives was a more intimate gathering with a simple message: "We are open for business."

Open for Business, But Challenges Remain

He Lifeng's speech underscored China's willingness to increase its purchases of foreign goods and services, signaling a move away from seeking a trade surplus.

Despite this message, a senior executive at a global bank noted that China continues to export its manufacturing overcapacity to foreign markets, particularly in the electric vehicle industry. This remains a key point of friction with no immediate solution.

Another senior executive running a multinational financial company observed that China appears to have learned from the mistakes it made three years ago. A series of crackdowns on the real estate, tech, and education sectors had previously dampened confidence. Now, the country is attempting to project a more steady and predictable image, just as the U.S. has become less so.

Europe Takes Notice as China Pledges Stability

This message of reliability seems to be resonating with some European leaders. During a recent visit, Canadian Prime Minister Mark Carney called the world's second-largest economy a "reliable and predictable partner" and encouraged EU leaders in Davos to seek investment from China.

Diplomatic and business ties are also strengthening:

• United Kingdom: Britain and China are reportedly working to revive the 'Golden Era' business dialogue during Prime Minister Keir Starmer's visit next week.

• Finland: Finnish Prime Minister Petteri Orpo is also scheduled to visit China with a business delegation representing the manufacturing, resources, and food sectors.

However, China's subdued presence in Davos coincided with its economic growth hitting a three-year low, suggesting that Beijing's push to boost domestic consumption has yet to deliver its intended results.