Li rises to occasion at ‘Summer Davos' with way forward for world
Since the first World Economic Forum 54 years ago at Davos, Switzerland, few have been held during comparable geopolitical turmoil and uncertainty as the 'Summer Davos' in Tianjin, northern China. The background of worldwide tariff wars, economic tensions involving leading powers and hot wars in the Middle East and Europe is without precedent. For example, policymakers and entrepreneurs have made it clear at the forum that uncertainties created by the United States' tariffs blitz are not only disrupting global supply chains but also delaying investment decisions.
Advertisement
It is amid all these strains on stability that economic leaders from government and private sectors around the globe have come together in Tianjin for the forum's second-largest annual gathering. They are looking to China, as the second-biggest and fastest-growing major economy, for a clear vision on the way forward.
Premier Li Qiang, keynote speaker at the Annual Meeting of the New Champions, the formal name of the event, did not disappoint. China is pinning its faith on the huge untapped potential of consumer spending to sustain its growth momentum. Li affirmed the country was striving to expand domestic demand and build a consumption-driven economy of a 'massive scale' on the foundations of a manufacturing powerhouse.
Thanks to fragile consumer confidence, there is a long way to go, as shown by last month's retail sales. They may have been up 6.4 per cent year on year, but that was after they were boosted by government subsidy and trade-in schemes. The latter lifted sales of cars, household appliances and other consumer items by more than 1.4 trillion yuan (HK$1.5 trillion) in 2024, a figure expected to be exceeded this year. Until a nation of savers can be persuaded to spend, Beijing may need to persist with incentives and subsidies.
Earlier, in separate meetings with foreign leaders, Li called on nations to defend free trade and multilateralism and uphold the stability of global supply chains. He reiterated China's commitment to working with other countries to pursue modernisation through pragmatic and mutually beneficial cooperation. This would create 'vast new market opportunities' for businesses around the world.
Advertisement
Addressing any doubts whether China could maintain growth in the face of so many volatile external challenges, Li said: 'We have the confidence and capability to keep China's economic growth at a relatively fast speed.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
14 minutes ago
- South China Morning Post
Chinese courier SF to raise US$752 million via Hong Kong shares, convertible bonds
SF Holding, China's largest courier, announced plans on Thursday to raise more than HK$5.9 billion (US$752 million) through a new share placement on the Hong Kong exchange and the issuance of convertible bonds. Proceeds from the HK$2.9505 billion equity placement and HK$2.95 billion in zero-coupon convertible bonds would be used for the firm's international and cross-border logistics capabilities, research and development of advanced technologies and digital solutions, capital structure, and general corporate purposes, it said in a stock exchange filing. Its shares opened 3 per cent lower at HK$44.80 in Hong Kong on Thursday, while its Shenzhen shares dropped 3 per cent to 48.80 yuan at the open. The transactions represent Shenzhen-based SF's first offshore fundraising since its initial public offering in Hong Kong in November, which raised HK$5.83 billion and became a bellwether of a recent wave of mainland China-listed firms issuing Hong Kong shares, known as H shares. SF plans to place 70 million H shares at HK$42.15 each, a discount of about 8.8 per cent to the closing price of HK$46.20 on Wednesday. The additional shares represent around 29.2 per cent of the enlarged H-share capital and about 1.4 per cent of total issued shares. Meanwhile, the convertible bonds due in 2026 have an initial conversion price of HK$48.47 per share, a premium of around 4.9 per cent to Wednesday's closing price. When the stock hits the conversion price, these bonds will be converted into about 60.9 million H shares, representing about 26.4 per cent of the enlarged H-share capital and about 1.2 per cent of total issued shares.
South China Morning Post
28 minutes ago
- South China Morning Post
Why are fewer wealthy Chinese likely to emigrate this year?
The number of wealthy mainland Chinese choosing to emigrate is projected to drop to a 10-year low this year thanks to the country's improved business environment and its growing appeal to tech entrepreneurs, according to a report by a London-based advisory firm. Henley & Partners' annual wealth migration report also said that Hong Kong is starting to see steady inflows of millionaire migrants from the rest of Asia, with an anticipated net inflow of 800 this year, including many executives from fast-growing hi-tech companies in neighbouring Shenzhen. A record 142,000 high-net-worth individuals – people with more than US$1 million in investible wealth – are expected to relocate internationally this year, according to the report, which was released on Tuesday. It said the net outflow of mainland Chinese millionaires would drop to 7,800 – down from 15,200 last year and 13,800 in 2023 – ending the country's decade-long run as the world's leading source of wantaway wealthy. The United Kingdom is set to have the largest net outflow of any country, losing 16,500 millionaires this year, the report said. Other European countries such as France, Spain and Germany are likely to be other major sources of outflow, it added. The rise of Chinese tech hubs such as Shenzhen and Hangzhou, alongside rapid growth in the private banking, healthcare and entertainment industries, is giving mainland millionaires new reasons to stay, Henley & Partners said. An emigration consultant and a wealthy Chinese mother said another major reason for the expected reduction in the outflow of mainland millionaires – likely to be the lowest since the Covid-19 pandemic according to the Henley & Partners report – was the growing uncertainty facing Chinese students studying abroad.
South China Morning Post
an hour ago
- South China Morning Post
US lawmakers blast ‘Enter the Dragon' hearing's anti-China ‘conspiracy' theories
Democrats accused Republicans of pushing conspiracy theories about China in a clash on Wednesday over Beijing's role in the US energy sector – days ahead of a potential Senate vote on a tax bill that would penalise American companies for having financial relationships with Chinese energy businesses. The fiery exchanges began at the outset of a hearing of the Senate Judiciary Committee, with Republican Senator Ted Cruz of Texas alleging that China's Communist Party was 'funnelling millions of dollars' into environmental lawsuits against US fossil fuel companies. Cruz highlighted the non-profit Energy Foundation China, a non-profit headquartered in San Francisco with an office in Beijing, citing its members' ties with the Chinese government and ruling party. 'This is not remotely a grass-roots non-profit. It is a foreign policy weapon disguised as philanthropy run by Communist Party operatives,' he said. Democrats were quick to push back on his claims, with Rhode Island's Sheldon Whitehouse, ranking member of the subcommittee on federal courts and oversight, lodging his own accusations. 'This hearing is a perfect display of projection: blaming your adversary for what you are doing. Dark money? Judicial capture? Propaganda? Oh my! The fossil fuel industry would have nothing to do with those things,' he said pointedly.
