DAVOS: As the threat of fresh trade conflicts looms in the wake of Donald Trump’s return to the White House, European and Chinese leaders alternated Tuesday in Davos in supporting international collaboration.
This week, Trump will appear virtually at the World Economic Forum in Switzerland, but for the businessmen and leaders mingling at the annual gathering in the Swiss Alps, he has been the linchpin.
German Chancellor Olaf Scholz, Chinese Vice Premier Ding Xuexiang, and European Commission President Ursula von der Leyen all presented worldviews in their addresses that are diametrically opposed to those of Trump, who has openly advocated for tariffs.
Without specifically referring to Trump, Ding stated, “Protectionism leads nowhere and there are no winners in a trade war.”
In response to Beijing’s rejection of his plan to keep the Chinese-owned app TikTok operational on the condition that half of it be sold off, Trump vowed on Monday to slap taxes.
Following the TikTok warning, Beijing, which is approaching Trump cautiously, expressed its optimism that the US would offer Chinese companies a fair economic climate.
By stating that the EU’s “first priority will be to engage early, discuss common interests, and be ready to negotiate” with Trump, von der Leyen adopted an accommodative stance.
In order to safeguard our interests and preserve our beliefs, she declared, “We will be practical but we will always stand by our principles.”
Despite growing trade tensions between the two countries, the president of the European Commission added that Europe “must engage constructively with China — to find solutions in our mutual interest.”
With a series of investigations aimed at state subsidies in the green technology industry and levies on Chinese electric vehicles, Brussels has infuriated Beijing.
China’s vice premier cautioned against “erecting green barriers that could disrupt normal economic and trade cooperation,” a reference to the European Union’s actions.
Additional trade agreements
Donald Trump declared during the campaign that he would slap additional customs duties on China and allies, including the EU.
Following his inauguration, he said that Canada and Mexico might be subject to 25% tariffs.
In her statement, von der Leyen reaffirmed her support for free trade, citing recent agreements the EU has made with Mexico, Switzerland, and the Mercosur group of South America. She added that she wished to “upgrade” her relationship with Indian Prime Minister Narendra Modi.
Scholz cautioned that “isolation comes at the expense of prosperity” and pledged to “defend free trade” with other allies. “When he says, ‘America First,’ President Trump means it. Considering the interests of your own nation is quite acceptable, according to Scholz.
“It’s just that you usually benefit from others’ cooperation and understanding as well.”
Ahead of the German elections next month, it was most likely Scholz’s final speech in Davos as chancellor.
During his address, Scholz continued to attack Elon Musk, the owner of Tesla, who has infuriated the chancellor by endorsing Germany’s far-right AfD party. “In Germany and throughout Europe, we have the right to free speech,” Scholz stated.