Overview
- On Wednesday at the World Economic Forum’s Summer Davos in Dalian, Premier Li Qiang publicly rejected claims that state subsidies are the main driver of China’s competitiveness and promoted a “China Opportunity 2.0” narrative.
- Li argued that a vast domestic market, intensive industrial effort and heavy corporate investment explain China’s gains, and he cited firms such as Huawei and Unitree as examples of companies that advanced despite export controls.
- He presented China’s steady growth as a global safe haven that provides certainty during shocks such as the Iran war, energy shortages and supply-chain disruption.
- The speech responds to rising international scrutiny after China’s trade surplus reached about $1.2 trillion last year, a build-up that has prompted calls for trade measures from some partners.
- Economists warn that weak household spending and falling investment, which recent data show have slipped to pandemic-era lows, leave China vulnerable if trade tensions escalate and underline the need to rebalance toward domestic demand.