Rep. Jared Moskowitz, D-Fla., says he supports the House Special Committee on China because the opponent frustrates national security concerns.
As leaders gathered in Davos for a second day of the World Economic Forum, China appeared to offer Western leaders an olive branch, but many remain skeptical given Beijing’s hostile diplomacy under the country’s authoritarian President Xi Jinping.
Speaking to a group of business and political leaders on Tuesday, Vice Premier Liu He said China is eager to revive mutually beneficial business ties, saying the market — not the government — must play a “fundamental role in allocating resources.”
Liu He, Vice Premier of China, delivers a speech at the World Economic Forum in Davos, Switzerland, Tuesday, Jan. 17, 2023. (AP Photo/Markus Schreiber / AP Newsroom)
“All-round opening is the basis of state policy and the most important driver of economic progress. China’s national reality dictates that opening up to the world is a must, not an expediency,” Liu said. “We need to open up more and make it work better.”
Liu’s comments alluded to the struggling Chinese economy in recent years, with draconian lockdowns, quarantines and tough COVID-19 containment measures.
An illuminated logo during a panel discussion on the opening day of the World Economic Forum (WEF) in Davos, Switzerland, Tuesday, January 17, 2023. The annual Davos gathering of political leaders, top executives and celebrities takes place from January 16 to (Photographer: Stefan Wermuth /Bloomberg via Getty Images/Getty Images)
Liu, a senior economy official in the State Cabinet, China’s cabinet, said, “If we work hard enough, we are confident that China’s growth will most likely return to its normal trend in 2023. The Chinese economy will see a significant improvement.”
Liu said China expects a sharp increase in its imports, more investment from companies and a return to regular consumption patterns in the coming months. He says the easing of COVID restrictions and the end of quarantine for people arriving from abroad are key factors in the economy’s recovery.
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His remarks come after China released data showing its economic growth fell to the second-lowest level in at least four decades last year amid pressure from antivirus controls and a real estate slump that Liu said pushed the economy close to collapsing would have led to a systemic crisis.
China’s economy grew 3% in 2022, less than half last year’s growth rate of 8.1%. That was the second-lowest annual rate since at least the 1970s, after 2020, when growth slowed to 2.4%.
A Swiss national flag flies on top of a building in Davos, Switzerland, Sunday January 15, 2023. The annual meeting of the World Economic Forum will be held in Davos from January 16-20, 2023. (AP Photo/Markus Schreiber / AP Newsroom)
Liu underscored the government’s efforts to cope with the earlier decline, particularly in supporting the real estate industry, which accounts for 40% of all bank loans and 50% of local government revenue. After years of breakneck economic growth, China’s goal is “high-quality economic development,” state-owned enterprise reform and private sector support.
EU leader Ursula von der Leyen, speaking before Liu, was more skeptical of China’s alleged targets and accused Beijing of subsidying European companies and blocking access to its single market, The Telegraph reported.
“The competition for net zero must be based on a level playing field,” she said. “We will not hesitate to launch investigations when markets are distorted by such subsidies.”
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The annual meeting of the World Economic Forum in Davos, Switzerland, lasts until Friday.