On Wednesday, China's Premier Li Qiang delivered a keynote speech at the World Economic Forum's Annual Meeting of the New Champions, commonly known as "Summer Davos," held in Dalian, a coastal city in northeastern China. In his remarks, Li defended China's technological advancements, framing them as opportunities for the world rather than threats. He addressed the prevailing Western concerns that China's state support for high-tech industries, including artificial intelligence and electric vehicles, offered an unfair competitive advantage.
Amid a backdrop of concerns dubbed "China Shock 2.0," which suggest that China's rapid technological rise poses a challenge to many developed economies, Li proposed an alternative perspective: “China Opportunity 2.0.” He emphasized that from a global development standpoint, this opportunity would lead to broader access to advanced technologies and more equitable benefits for all. He remarked, "China's emerging technologies and products are bringing to the world not shocks, but opportunities. Not threats, but empowerment."
Li outlined that China's technological advancements and its growing exports of electric vehicles, solar panels, chips, batteries, artificial intelligence, and robotics are providing affordable options for global markets. However, these advancements have also sparked criticisms from governments concerned about oversupply and competition, resulting in some nations implementing protectionist measures.
Further addressing the issue of state support, Li refuted claims that the rapid growth of China's high-tech sectors was primarily due to large government subsidies. He pointed out that the Chinese government is not particularly wealthy, stating, “There are some people who say that Chinese products are competitive mainly because of the Chinese government’s subsidies. That’s not true.” Instead, he credited China’s extensive domestic market of 1.4 billion people and significant corporate investments as key drivers behind the nation's robust technological progress.
During his speech, Li cited examples of successful Chinese companies like Huawei, which has faced scrutiny and restrictions from Western nations, and robotics firm Unitree, both of which have seen rapid growth. Despite the Pentagon's recent expansion of its list of military-linked companies, which includes firms like Unitree and Huawei, Li's examples underscored China's innovation capabilities and resilience in the face of international challenges.
Li's comments come amidst rising global scrutiny over China's subsidies and market practices. A report from the Organization for Economic Cooperation and Development (OECD) highlighted concerns over state subsidies distorting global markets and creating unfair advantages. Yet, Li maintained that the narrative oversimplifies the complexities of China's economic ecosystem, advocating for a more nuanced understanding of the nation's contributions to global technological advancement.
Overall, Li Qiang's defense of China's technological trajectory at the Summer Davos serves to counteract negative perceptions while promoting China's vision of collaboration and opportunity on the global stage. His assertions emphasize the dual nature of China's rise: one that fosters development and innovation, while also navigating the intricate dynamics of international trade relations.
