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China may not have generated the loudest moments at this year’s World Economic Forum in Davos, but for many policymakers and investors, it remained the most consequential presence in the room.

As global leaders debated U.S. claims over Greenland, escalating trade disputes, and growing security concerns, China’s delegation focused on a contrasting message: cooperation, stability, and long term economic engagement. For Beijing, Davos offered a strategic opportunity to highlight predictability at a time when uncertainty increasingly surrounds Washington and its allies.

Chinese Vice Premier He Lifeng, one of the country’s four top economic officials, represented the world’s second largest economy in Switzerland. His remarks centered on welcoming foreign investment, ensuring fair treatment for Chinese firms abroad, and pointing to U.S.–China trade negotiations as proof that dialogue remains possible even amid rivalry.

While his speech attracted less media attention than the headline grabbing remarks of Western leaders, analysts inside China argue that Beijing’s consistent tone may ultimately carry more influence.

“This year’s Davos marks a watershed moment,” said Hai Zhao, director of international political studies at the Chinese Academy of Social Sciences. He suggested that countries are increasingly preparing for a world organized around regional trade blocs rather than a U.S.-centered global economy.

A Shifting Global Balance Comes Into Focus

The Davos agenda reflected a broader recalibration of global power. U.S. President Donald Trump drew headlines for sharp comments toward foreign leaders and later softening his stance on Greenland. European Commission President Ursula von der Leyen outlined potential new trade frameworks, including what she described as a potentially historic agreement with India. Canadian Prime Minister Mark Carney warned of a “rupture in the world order,” a speech widely viewed as one of the forum’s most consequential.

Yet Chinese analysts see opportunity in the growing strains between Washington and its traditional partners.

According to Wei Wang, a researcher at Tianjin University of Commerce, rising U.S.–Europe tensions are opening doors for deeper China–EU engagement. He added that controversies such as Greenland are accelerating recognition in the West that attempts to economically isolate China are faltering.

Peter Alexander, managing director of Shanghai-based Z-Ben Advisors, noted that many emerging economies have long accepted what Davos is only now acknowledging.

“With each passing day, it becomes evident that so long as China dominates production, all other nations have limited leverage,” he said, pointing to China’s central role in global manufacturing and logistics.

China now accounts for roughly 37 percent of global container shipping volume, underscoring its position at the heart of international trade flows. Beijing has also framed itself as a stabilizing force after becoming the first major economy to retaliate against Trump’s sweeping “Liberation Day” tariffs earlier this year.

Although Washington and Beijing reached a fragile one-year truce in October, tariffs remain elevated, and U.S. restrictions on China’s access to advanced semiconductors and artificial intelligence technologies are still in place. Trump is scheduled to visit China in April, a trip widely seen as a test of whether the détente can hold.

Diplomatic Momentum Builds in Beijing

Beyond Davos, China’s diplomatic calendar is filling rapidly. January alone brought a series of high-profile visits that contrast sharply with the isolation of the pandemic years.

President Xi Jinping met Ireland’s Prime Minister Michael Martin in Beijing, marking the first Irish leadership visit in 14 years. On the same day, Xi hosted South Korea’s President Lee Jae Myung. Canadian Prime Minister Mark Carney also traveled to Beijing, where both sides announced a new strategic partnership covering agricultural trade, including canola seeds, and cooperation in electric vehicles. U.K. Prime Minister Keir Starmer is expected to follow with a visit in the coming weeks.

For businesses, these diplomatic signals matter.

Jacob Cooke, co-founder and CEO of WPIC Marketing + Technologies, said the renewed flow of leaders into China is helping restore confidence among international brands.

Over the past year, Cooke has observed a noticeable increase in interest from non-American Western companies seeking to diversify away from U.S.-centric strategies by expanding sales in China. His firm supports global brands entering Asian e-commerce platforms, and he reports steady demand from Chinese consumers for premium goods, particularly in vitamins, pet products, wellness, and sports equipment.

This shift comes as companies reassess global supply chains in response to tariffs, geopolitical risk, and rising costs in traditional markets.

Domestic Challenges Persist, but Global Influence Grows

Despite China’s expanding international footprint, economic headwinds at home remain significant. Vice Premier He has emphasized that boosting domestic demand, especially household income growth, is a top priority for 2026.

That task is proving difficult. Retail sales rose just 0.9 percent in December, marking the slowest growth rate since the pandemic. Property sector weakness continues to weigh on consumer confidence, and policymakers have yet to outline specific measures to materially lift disposable incomes.

Even so, China’s global relevance appears to be growing regardless of these internal pressures.

BlackRock CEO Larry Fink, who co-chaired this year’s Davos forum, suggested that the future of the gathering itself reflects this shift. He said the World Economic Forum may increasingly move beyond the Swiss Alps to cities such as Jakarta, Buenos Aires, Detroit, Dublin, and other emerging economic hubs.

The forum already hosts an annual summer session in China, with this year’s event scheduled for Dalian in the country’s northeast. Participants at last year’s meeting noted a clear tilt away from Western dominated narratives toward a more multipolar outlook.

A Softer Tone from Washington

Even Trump appeared to strike a more conciliatory note toward Beijing during his Davos appearance.

He praised President Xi Jinping, calling him “highly respected” and highlighting their past working relationship. Trump also acknowledged that bilateral ties were disrupted by Covid and revealed he stopped using the term “China virus” at Xi’s request.

While rhetoric fluctuates, the underlying reality remains: the U.S.–China rivalry is reshaping trade, technology, and diplomacy worldwide. As Alexander observed, today’s tensions are the result of decades of policy missteps and strategic miscalculations.

China may not have dominated Davos headlines, but its presence loomed large over every discussion. As alliances shift and economic power continues moving eastward, Beijing’s quiet consistency may prove more influential than any single speech from the main stage.

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