While the US made headlines with tariff threats and Greenland disputes, China chose a different strategy at Davos: Silence.
According to global business leaders, Beijing is “controlling the dynamic through stillness”—a deliberate attempt to present itself as the predictable, reliable alternative to an increasingly volatile Washington. Vice-Premier He Lifeng delivered a brief address emphasizing imports, while avoiding the bombastic receptions hosted by the US delegation.
♟️ THE STRATEGIC PIVOT:
- The Message: “We are open for business.” In intimate lunches with Western executives, Chinese officials focused on stability, aiming to capitalize on the Trump administration’s clash with Europe.
- The Response: It’s working.
- Canada: PM Mark Carney called China a “reliable and predictable partner” and encouraged EU investment.
- UK: PM Keir Starmer is reviving the “Golden Era” business dialogue.
- Finland: PM Petteri Orpo is scheduling a high-level trade visit.
📉 THE ECONOMIC REALITY: The diplomatic offensive comes out of necessity.
- Growth: China’s growth has hit a three-year low.
- Overcapacity: The country is still grappling with manufacturing glut, particularly in EVs, which remains a friction point with trade partners.
- Reform: Executives note China has “learned from the mistakes” of the recent tech/property crackdowns, pivoting back to pragmatism to arrest the economic slowdown.
💡 ANALYST TAKEAWAY: The script has flipped. For decades, the US was the “Safe Harbor” and China was the “Risk.” Now, with US policy oscillating wildly, Beijing is pitching “Predictability” as its primary export. If European leaders—exhausted by transatlantic friction—start hedging their bets, China could win the investment war simply by staying quiet and keeping the door open.
👇 Geopolitical Strategists: Can China effectively rebrand as the “stable partner” while still exporting deflation via manufacturing overcapacity?