The annual meetings of the World Economic Forum (WEF), Davos
have always played a pivotal role in addressing global issues. WEF, a Swiss
Non-profit organization started by German business professional, Klaus Schwab
in 1971 based in Cologny was first named as European Management Forum. It was
rechristened in 1987 as World Economic Forum. Subsequently its vision was
broadened to ameliorate pressing global issues through active participation of
leaders of economic, academic, business, political arenas. Soon the forum
became popular as the Davos forum and emerged as a neutral platform for
resolving various international conflicts as well. Samuel Huntington even
coined word “Davos Men” referring to iconic participants of Davos Forum. The
organization convenes six to eight meeting every year at different locations
and engages in sector specific initiatives too. But what makes the 2017 Davos
Forum significant is the illustrious presence of President Xi Jinping. He
became the first Chinese leader to attend WEF.
Davos indeed has a unique reputation of focusing on most
relevant and pressing issues of the day. Last Year, the WEF objectively
analyzed the implications of the Fourth Industrial Revolution 4.0. The advent of
artificial intelligence, automation and Big Data Analytics critically
transformed the face of every major industry. This year, the rather
unprecedented referendum results and stunning election victory steered by
populism has shifted international attention to the need for restoration and
reinduction of an international order. The global economic order is currently
mired by conflicting popular movements that ruefully disapproved the game
changers of 20th century- globalization and World without borders. Moreover,
the transfer of power has created a brief lacuna in World leadership. Seizing
this opportunity, China, which has been clamoring for an international rise, unveiled
new economic vision at the meet attended by over 2500 Davos Men. President Xi
on the opening day of the forum themed “Responsive and Responsible Leadership”,
vouched to uphold free trade and spurned protectionism, advocated by President
elect Trump. Keen on hijacking the mantle of leadership, Xi defended
globalization that changed the fortunes of China. Quoting Charles Dickens, A
tale of two cities, “It was the best of times, it was the worst of times” he
urged that there is no point blaming globalization for all the global problems.
He said while globalization has been a Pandora box, international financial
crises were caused by excessive greed for profits, not by globalization. He
added that three issues have scuttled the global development. These are absence
of enough driving force for reform and development, inadequate global governance,
and unequal global development.
In a veiled dig at Trump, he added “pursuing protectionism is
just like locking one’s self in a dark room: wind and rain might be kept
outside but so are light and air”. Xi called for an inclusive globalization and
warned that populist approaches might lead to war and poverty. Signing off with
a warning shot that tit for tat trade policies can be disastrous, he indicated
that “no one would emerge a winner in a global trade war”.
While Xi’s pragmatic vision towards free trade might rekindle
spirts of the business leaders, the habitual mismatch of Chinese public
diplomacy and concrete action is a sure dampener. Incidentally while Xi spoke
of “opening up”, China is steadily clamping restraints on imported goods.
American Chamber of Commerce reported that China raised duties on distillers’
grain from US, increased anti-dumping tax from 42.2 to 53.7% and anti-subsidy
tax from 11.2 to 12%. Meanwhile, American companies also allege that trade with
China is becoming increasingly difficult due to unclear laws, inconsistent
enforcements, rising protectionism, and restrictions on foreign investments.
Meanwhile, as an air of uncertainty and unpredictability,
overhangs the international arena President Xi poignantly presented China as a
savior of globalization. Ambitious Xi, tried to woo business leaders ruffled by
backlash against globalization by the west. Despite Xi’s frantic attempts, China
can’t replace the US due to lack of economic openness, overpowering hegemonic
aspirations and despotic nationalism. Davos strongly upholds the values of free
trade, unhindered migration, strengthening of multilateralism and disdains
nationalism. They expound an international order that transcended territorial
boundaries. China’s intense nationalistic fervor and the fervent “Chinese Dream”
are in contravention to basic tenets advocated by Davos Men. Now with Trump
intent on “Making American Great Again” and threatening to pull put from free
trade agreements, Xi saw an opportunity in Davos. China with its growing
economic clout and muscularity might prevail over the region but its poor
credentials might have few international takers. Though Xi might project China
as “champion of global governance” and “new torch bearer of free trade”. Its cavalier
rejection of the Permanent Court of Arbitration (PCA) ruling regarding South
China Sea and hegemonic presence in the region has earned it a great disrepute.
Unscrupulous trade practices and usurping economic zones under the ruse of
infrastructure in countries like Myanmar, Sri Lanka and Malaysia made smaller
Asian countries suspicious of China’s intentions. Consequently, China is
struggling to earn the confidence of its immediate neighborhood. The attitude
of “My way or highway” is eliciting acrimonious responses. India earlier
supported China to counter the Western dominance. But following China’s
inveterate agenda of blocking India’s rise, New Delhi is forced to reevaluate
its stand.
Ever since, President of Tsai Ing-Wen’s congratulatory phone
call to Trump, Sino-American rivalries intensified. The illustrious WEF had
been a seat of resolving global issues like refugee crisis, financial bailouts
and rising global inequalities etc. But the overwhelming presence of President
Xi has shifted the focus away from the global problems to China’s role in
global public discourse on the opening day.
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