Separate to unite – Newspaper Kommersant No. 8 (7453) of 01/18/2023

The main theme of the World Economic Forum (WEF) taking place in Davos looks unusual for this always global event – “Cooperation in a fragmented world.” The pandemic, trade wars and other events, including the conflict in Ukraine, are gradually moving the world towards deglobalization. Against this background, Chinese Vice Premier Liu He, who spoke in Davos, invites foreign investors to “restart” the country’s economy, which has slowed down due to COVID-19, and the head of the European Commission, Ursula von der Leyen, condemns the protectionist policy pursued by the United States and China, which negatively affects production in the EU .

The meeting of the business and political elite in Davos, Switzerland (a record 2,700 participants, there is no Russian delegation) is taking place at a clearly difficult time. “The world is facing many crises at once,” founder Klaus Schwab said at the opening of the forum. Some of them are directly related to the ongoing deglobalization. Among its reasons, discussed at the forum and in studies timed to coincide with its opening, are the pandemic and the Russian military operation in Ukraine, Brexit and the US-China trade wars (more see “Kommersant” dated January 17).

One of the most anticipated events of Davos was the speech of Chinese Vice Premier Liu He. For the Chinese delegation headed by him, the visit to Switzerland is the first foreign trip of this level after the abolition of the “zero tolerance” policy for covid.

Commenting on the data that China’s GDP in 2022, with a target of 5.5%, grew by only 3%, Liu He promised that in 2023 the growth rate would “return to normal.”

He hopes that foreign investors will play a significant role in the “general prosperity” of the Chinese economy, and stressed that the country is open to global cooperation.

The risks of curtailing relations worry the leaders of the financial market, who spoke on Tuesday in Davos. “Realizing that a complete decoupling would be catastrophic for the global economy means that there is a sincere desire on the part of both the US and China to find areas where cooperation can be established,” said Fidelity International CEO Ann Richards.

Against the backdrop of such wishes from financiers, the head of the European Commission, Ursula von der Leyen, said on Tuesday that China and the United States are still promoting protectionist policies, which is alarming for the EU. She recalled that China, which has made stimulating innovation in the field of cleaner production a key priority (in particular, the production of electric vehicles and solar panels), encourages such companies to move from Europe to China, promising cheap energy, low labor costs. and soft regulation. This, according to the head of the European Commission, creates unequal conditions for competition in the green market.

Similar claims from the EU and the US.

Economic relations between the parties deteriorated somewhat after US President Joe Biden signed a law to reduce inflation, which implies the introduction of large-scale incentives for national producers.

The EU plans to resolve some of the issues through negotiations, while some will be resolved by the “mobilization of state aid” announced at the forum, which should facilitate the development of the green industry in the EU and prevent companies from moving to the United States.

In addition to, according to Ursula von der Leyen, the “dishonest practices of state subsidies” in other countries, the situation in Europe is further complicated by rising electricity prices, due to which goods produced in the EU will probably not be able to compete with American and Chinese counterparts. Ngozi Okonjo-Iweala, Director General of the World Trade Organization (WTO), also warned against entering the “race of subsidies” in the field of green energy of the country. The forum participants will look for solutions to the problems arising from deglobalization already at bilateral meetings, which will continue at the WEF on Wednesday.

Christina Borovikova