The Chinese Communist Party (CCP) sent a large delegation led by Premier Li Qing to the World Economic Forum in a bid to attract foreign investors as China’s economy faces significant challenges. However, experts observed that the fundamental structural differences between China’s centralized economic system and liberal, free market systems made it difficult for the CCP to convince delegates that its economy is reliable for investment.
Despite the large delegation of 140 members, including 10 ministers and chief economic officials, the CCP’s efforts at the forum did not alleviate concerns about China’s declining economy. Problems such as government debt, a real estate crisis, and high unemployment continue to plague the country.
The CCP’s strict COVID-19 policies and anti-espionage measures caused a significant outflow of foreign investment, indicating a trend that is expected to continue. Nevertheless, Mr. Li Qing emphasized China’s potential as a safe investment destination and proposed vague suggestions for building economic and technical cooperation between China and the West.
While the CCP seeks to attract foreign capital, the West’s move to invest more in democratic countries and steer supply chains away from China highlights increasing skepticism towards China. At a meeting with Western business leaders, concerns over the risks of investing in China were acknowledged, signaling a shift in the risk-reward balance for investors.
In response to remarks at the forum by European Commission President Ursula von der Leyen and U.S. secretary of state Antony Blinken, Mr. Li chose not to address geopolitical issues. However, the CCP’s support for Russia and Hamas has led the international community to view it as aligning with political interests.
Chinese researcher Song Guo-cheng and Yeh Yaoyuan of the University of St. Thomas noted that the CCP’s efforts to attract investment were overshadowed by their continued aggression in contentious territories and lack of progress in democratization efforts. Economist predictions also suggested a continued decline in China’s economic growth.