WEF in China: Global economy in a slump – DW – 06/25/2024 (2024)

For a few days, a subway station in Dalian, China, will be renamed. Instead of simply Congress Center it is now plastered with huge decals that say "Annual Meeting of the New Champions."

Outside, the streets and sidewalks are sparkling clean, access roads all around have been cleared far and wide. Colorful flags flutter in the wind.

Dalian, a city on the Yellow Sea in northeast China, is the proud host of this year's Summer Davos,as the meeting ismore commonly known.

The World Economic Forum (WEF) event is taking place in China for the 15th time. From June 25 to 27 participants will gatheragain in the city's futuristic conference center.

The conference center looks like a giant shell and was designed by Vienna-based architects. The building can accommodate 7,000 visitors; some1,500 are expected at the Summer Davos meeting.

WEF in China: Global economy in a slump – DW – 06/25/2024 (1)

Thousands of visitors and confidential talks

Directly in front of the conference center is a showroom with a new BMW model. The German car manufacturer produces sedans for the Chinese marketin Shenyang, about an hour-and-a-half from Dalian by train.

Many of the cars are significantly longer than the ones in Europe. Anyone who can afford such a BMW in China usually has a driver. Large monitors with internet access, video games or TVs are intended to make the journey more pleasant for those sitting in the back. The vehicle on display is, unsurprisingly, an electric model.

WEF in China: Global economy in a slump – DW – 06/25/2024 (2)

Tensions and global trade wars?

The way the conference center was designed allows for the quick creation of meeting rooms.And creating safe spaces for confidential conversations is opportune, given theunrest in the world at the moment.

One of the most serious situations is the increasing political and economic tensions between the United States and China. China may also be about to start a trade war with the European Union over electric vehicles.

"Beijing is opposed to any form of trade war," wrote theChina Daily, the English-language newspaper published by China's Communist Party, in an editorial last week. But just a few lines later it threatened countermeasures if the EU imposes special tariffs on certain electric vehicles from China.

China is 'the epicenter for innovation'

Against this background, there is little optimism in Dalian. Granted, the global economy is growing, especially in Asia. However, when WEF experts speak of a recovery they are very cautious pointing out the "current muted state" of the economy. At the moment,a number of serious geopolitical risks are brewing.

But others see opportunities for business with China. One of them is Suhas Gopinath, the CEO of Globals, which works with artificial intelligenceand specializes in cybersecurity. Gopinath came to Dalian from Bangalore, India, and his schedule for the next few days is completely full.

"China is now like the epicenter for innovation, and I am very curious about what is happening after the post-pandemic world in China," said Gopinath. "The Summer Davos is taking place after a very long gap, and I think it is very important for every businessman who is building a global company not to miss out on what is happening in China."

Fears that China overtaking car country Germany

China developing its own technology

The Dalian city government contacted Gopinath before his visit and suggested people he could contact to set up meetings. It even provided a Chinese student who speaks good English to help as an interpreter.

China wants to present itself as a reliable and important economic partner. The People's Republicis pushing its own developments ingreen industries and technologies, plus artificial intelligence.

Nevertheless, a certain level of cooperation with foreign companies is still being encouraged.

"We could learn from them, study from them, not just copy from them and we could find our path to find the right way to improve the technology and other things in China,"said21-year-old Yu Boyi, ofShenyang. He is an exceptional student, withgood gradesand knowledge of English, and is probably one of the youngest participants at this year's meeting.

New technologies and know-how

Many Chinese people in Dalian appear just as self-confident as the young student.

It's an attitude that seems to say that anyone who wants to work with us is welcome — if they accept our conditions. Most importantly it's about the transfer of know-how and opportunities through the rapid development of new technologies.

Politics, on the other hand, is a subject many here don't like to talk about that much.

"Countries can't be in silos for trade and business. It is very important to keep the geopolitical aspects aside and to focus on the economy and on growth," said Indian entrepreneur Gopinath."India cannot go ahead without China, and the other way around."

For its part, Dalian did a lot to prepare for this World Economic Forum event. Friendly, smiling employees fillthe hotels to show guests the way.

Other volunteers were trained for weeks to welcome visitors in an open, cosmopolitan manner. They are supposed to speak English as much as possible, though some still have difficulties.

Even the weather has cooperated so far,an agreeable 26 degrees Celsius (78 degrees Fahrenheit). Not too hot, and not too cold.

This article was originally written in German.

Can China still become the world's largest economy?

WEF in China: Global economy in a slump – DW – 06/25/2024 (2024)

FAQs

WEF in China: Global economy in a slump – DW – 06/25/2024? ›

China has been the driver of the global economy for years, but now it's hitting roadblocks. It's just one of the many topics at this year's World Economic Forum meeting in China. For a few days, a subway station in Dalian, China, will be renamed.

How does the US benefit from China's rapid economic growth? ›

China is the largest U.S. merchandise trading partner, biggest source of imports, and third-largest U.S. export market. China is also the largest foreign holder of U.S. Treasury securities, which help fund the federal debt and keep U.S. interest rates low.

Why is China so important to the global economy? ›

China's growing economy is also an important source of global demand. Its economic rebalancing will create new opportunities for manufacturing exporters, though it may reduce demand for commodities over the medium-term. China is a growing influence on other developing economies through trade, investment, and ideas.

Is China a planned economy? ›

Under the socialist-market model, the Chinese Government plays a direct role in managing the economy through its five-year plans that set goals, strategies and targets.

How developed is China? ›

Beijing classifies itself as a "developing" country in the WTO. However, the World Bank and U.N. Development Program classify China as an "upper middle income" country, while the IMF calls the country an "emerging and developing economy."

Is China's economy doing better than the US? ›

US gross domestic product rose 6.3% in nominal terms, compared to China's 4.6% gain in 2023.

Which is the fastest growing economy in the world? ›

What country has the fastest growing economy in the world ? According to the IMF, Guyana is the world's fastest-growing economy in terms of real GDP since 2018, boasting an impressive five-year average economic growth rate of 27.14%, including an astounding 62.3% growth in 2023.

How much money does the US owe to China? ›

Nearly half of all US foreign-owned debt comes from five countries. All values are adjusted to 2023 dollars. As of January 2023, the five countries owning the most US debt are Japan ($1.1 trillion), China ($859 billion), the United Kingdom ($668 billion), Belgium ($331 billion), and Luxembourg ($318 billion).

How much trouble is China's economy in? ›

China's economy is at a turning point. An old economic model underpinned by heavy investment in infrastructure and real estate is crumbling. Growth is slowing and prices are falling, raising the specter of a Japan-style slide into stagnation.

How many countries rely on China's economy? ›

However, the economic powerhouse remains a top trading partner to over 120 countries, and is still the largest trading partner to Japan, South Korea, Taiwan and Vietnam, according to U.S. think tank Wilson Center.

Is China socialist or capitalist? ›

They concluded that China's contemporary economic system represents a form of capitalism rather than market socialism because: (1) financial markets exist which permit private share ownership—a feature absent in the economic literature on market socialism; and (2) state profits are retained by enterprises rather than ...

What is China's main source of income? ›

The country's services sector is propelling its economic output followed by manufacturing and industry, with agriculture rounding out the list of top three sectors. China is one of the world's largest exporters and importers in the world.

What is the most capitalist country? ›

Top 10 Countries with the Most Capitalist Economies - 2023 Heritage Index of Economic Freedom:
CountryEcon. Freedom Index - Heritage 2023
Singapore83.9
Switzerland83.8
Ireland82.0
Taiwan80.7
6 more rows

How do rich Chinese get money out of China? ›

One popular technique is known as “smurfing.” It involves recruiting people on the mainland who haven't used their legitimate remittance quotas of $50,000. By using many people, the agencies can then use their bank accounts and small individual allowances to funnel large amounts of money outside the country.

What is the average income in China? ›

In China, the average monthly salary is 29,300 Yuan (Chinese Yuan), equating to USD 4,214 (US dollars) per month according to the exchange rate in May 2023 (according to Salary Explorer). Note: Renminbi (abbreviated RMB) is the official currency of China.

How much debt is on China? ›

China: National debt from 2019 to 2029 (in billion U.S. dollars)
CharacteristicNational debt in billion U.S. dollars
202314,448.67
202212,797.79
202111,358.74
20209,931.52
7 more rows
May 24, 2024

How has the US benefited from China? ›

Chinese manufacturing also lowered prices in the United States for consumer goods, dampening inflation and putting more money in American wallets. At an aggregate level, US consumer prices are 1 percent - 1.5 percent lower because of cheaper Chinese imports.

How much does China contribute to the US economy? ›

China was the United States' third-largest trade partner in 2021. In 2021, 8.6% of total U.S. exports of $1.8 trillion to the World were exported to China and 17.9%of total U.S. imports of $2.8 trillion were imported from China.

What are the benefits of economic growth in the US? ›

Higher economic growth leads to higher tax revenues and this enables the government can spend more on public services, such as health care and education e.t.c. This can enable higher living standards, such as increased life expectancy, higher rates of literacy and a greater understanding of civic and political issues.

How does strong economic growth in China affect aggregate demand in the United States? ›

If China extends its markets to the united states, the aggregate demand for the united states will both lower because as the Chinese economy becomes strong, they offer cheaper products, enter into new markets such as in the united states and increase investments in the united states.

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