Editor's Note: Greetings from Brussels. While China is rolling a red carpet for Belgian PM Alexander De Croo, one of the first foreign leaders to visit this year, his trip gains added significance with Belgium's current presidency of the Council of the EU. This edition of the CCCEU Weekly Update will keep you in the know of the upcoming Davos Forum, Mr. De Croo's stay in Beijing, as well as key China-EU developments. Enjoy your read and have a restful weekend.

▶Focus

The 54th annual gathering of the World Economic Forum (WEF) is scheduled to convene from January 15th to 19th in Davos-Klosters, Switzerland. Themed "Rebuilding Trust," this year's forum will engage in discussions spanning economic growth, climate and nature action, energy security, technology governance, and human development.

Borge Brende, President of the WEF, stated at a press conference on January 9th that this year's annual meeting will take place against the most complex geopolitical backdrop to date. He noted that one of the focuses this year would be high-level diplomatic talks on conflicts in the Middle East, Ukraine, and Africa.

Adding to the complexity, the global economy is navigating its "most fragile" period in the past three decades. The World Bank's "Global Economic Prospects" report, unveiled on January 9th, predicts a deceleration in global economic growth for the third consecutive year, plummeting from 2.6% in 2023 to 2.4% in 2024. This dip marks the slowest five-year growth period in thirty years, as outlined by Jeremy Jurgens, Managing Director of the WEF, who underlined that the intricate economic scenario will be a focal point of this year's discussions. He also highlighted increased participation from Latin America and Asia, reflecting broader shifts in the global economic landscape.

The forthcoming Davos meeting is set to host over 2,800 leaders from 120 countries. Distinguished political figures in attendance encompass Chinese Premier Li Qiang; Ursula von der Leyen, President of the European Commission; Antony Blinken, United States Secretary of State; Emmanuel Macron, President of France; and Volodymyr Zelenskyy, President of Ukraine, among others.

Several leaders of prominent international organisations are set to participate in the forum, including António Guterres, the Secretary-General of the United Nations; Kristalina Georgieva, the Managing Director of the International Monetary Fund; and Ajay S. Banga, the President of the World Bank.

Additionally, about 1,600 business leaders are expected to attend this year's meeting. This includes over 800 CEOs and chairpersons from World Economic Forum members and partners, as well as more than 150 global innovators, technology pioneers, and unicorn companies that are driving transformation across various industries.

WEF: Establishment, Operation, and China Collaboration

The World Economic Forum, often referred to as the "Davos Forum" from its initial meeting in Switzerland, serves as an unofficial international organization. Dedicated to studying global economic issues and fostering international economic cooperation, it is headquartered in Geneva. Originally the European Management Forum (EMF), founded by economist Klaus Schwab in 1971, it underwent a name change in 1987 to become the World Economic Forum (WEF). By 2023, the Davos Forum had successfully convened for 53 sessions, recognised as a pivotal "public opinion arena" and a crucial "briefing meeting" for the global political and business sectors.

Every year, the WEF formulates a theme based on the current international economic situation. Its role as a global dialogue "convener" has always been recognized. For instance, Gavi, the Global Vaccine Alliance, was launched at the 2000 WEF, and later received further financial support from entities including the Bill & Melinda Gates Foundation and countries like Germany at the 2020 WEF. However, there are concerns about the forum's evolution from a mere "convener" to a policy maker, especially considering its high dependence on corporate funding.

The financial model of the WEF is mainly supported by membership and partnership fees, with major contributions from large corporations. The Economist reports that this model has its pros and cons. While it allows participants with weaker economic power, such as scholars and activists, to join, it also raises questions about the forum's independence and its ability to challenge corporate interests. Nevertheless, this model has been used for years, playing a significant role in the forum's finances and enabling its development into a non-profit foundation with substantial reserves and operational capabilities.

China has always maintained a good cooperative relationship with the Davos Forum. Since 1979, China has been invited multiple times, sending delegations to participate in the annual meetings and deliver important speeches. In 2005, forum chairman Schwab proposed the idea of an "Annual Meeting of the New Champions," also known as "Summer Davos in China." In 2006, the forum established a representative office in Beijing. The first Summer Davos Forum annual meeting was held in Dalian, China, in September 2007. It has been held 24 times consecutively, and the 2024 Summer Davos Forum is scheduled to be held in Dalian, China.

▶ Hot Topics

 >>Xi, Belgian PM meet in Beijing, agreeing to enhance ties

Chinese President Xi Jinping met with Prime Minister of the Kingdom of Belgium Alexander De Croo in Beijing on Friday, Xinhua reported.

China appreciates De Croo's open opposition to the decoupling or severing of industrial and supply chains on many occasions, welcomes Belgian companies to invest in China, and stands ready to provide them with a sound business environment, Xi said, expressing his hope that Belgium will also provide a fair, transparent and non-discriminatory business environment for Chinese companies.

China is willing to work with the European Union (EU) to foster progress in China-EU relations in the new year and hopes that Belgium, as the EU rotating presidency, will play a positive role in this regard, Xi added.

De Croo said Belgium opposes decoupling or severing of industrial and supply chains, welcomes Chinese enterprises to carry out cooperation in Belgium, and hopes to strengthen personnel and cultural exchanges with China.

 >>Li Qiang urges Belgium to provide open, fair, transparent business environment

Chinese Premier Li Qiang called on Belgium to provide an open, fair, transparent and non-discriminatory business environment for Chinese enterprises as he met Prime Minister of the Kingdom of Belgium Alexander De Croo in Beijing on Friday, CGTN reported.

China welcomes more Belgian enterprises to invest in China and supports more Chinese enterprises to invest in Belgium. Li said while voicing the hope that the Belgian side will uphold the concept of openness and follow the market principle to provide an open, fair, transparent and non-discriminatory business environment for Chinese enterprises.

 >>Belgium inaugurates new embassy in Beijing

Belgian Prime Minister Alexander De Croo and Foreign Minister Hadja Lahbib inaugurated the new Belgian Embassy building in Beijing on Thursday in the presence of Chinese Foreign Minister Wang Yi. The latter called on Belgium to act as a bridge "to once again contribute to greater mutual understanding and deeper cooperation between China and Europe," the Belgian News Agency reported.

  >>China lifts ban on Belgian pork

China has lifted its ban on imports of Belgian pig products, five years after an outbreak of African swine flu slashed the sector's access to the crucial Asian market, Politico reported.

The news was announced on Friday morning by China's Ministry of Agriculture and Rural Development and General Administration of Customs, which said in a joint statement that Belgian pig and pork exports must comply with statutory inspection and quarantine requirements.

 >>Reuters Exclusive: EU investigators to inspect China's BYD, Geely and SAIC in EV probe

Reuters reported that European Commission investigators are to inspect Chinese automakers in the coming weeks as part of a probe into whether to impose punitive tariffs to protect European electric vehicle (EV) makers.

The inspectors will visit BYD, Geely and SAIC, two sources said, with one of them saying the investigators will not visit non-Chinese brands produced in China, such as Tesla, Renault and BMW.

  >>China's top climate diplomat Xie Zhenhua retires

China's long-time climate envoy Xie Zhenhua has officially retired and will be replaced by one of the country's top diplomats, Liu Zhenmin, state-run CCTV reported Friday.

The move had long been expected, with Xie dealing with health issues in recent years. The move was announced on the same day that the China-US Climate Action Working Group officially commenced. At their first meeting conducted via a video link, Chinese and US officials discussed the energy transition, methane and local-level climate cooperation, Bloomberg reported.

▶What are experts talking about？

Building an important bridge

Source: China Watch

Author: Bernard Dewit, chairman of the Belgian-Chinese Chamber of Commerce and senior partner of Dewit Law Office

It is in the EU and China's best interest to further strengthen their cooperation to solve common challenges such as global hunger and climate change. Even though the EU considers China both a rival and partner, it remains committed to cooperating with China to ensure continued progress in order to reach the United Nations sustainable development goals and the Paris Agreement targets. The EU and China have both committed to a comprehensive strategic partnership through the EU-China 2020 Strategic Agenda for Cooperation and the 2019 Joint Communication "EU-China — A Strategic Outlook". The EU supported low-carbon urban development in China in 2018, with European cities such as Amsterdam and Bologna providing technical advice to Chinese cities such as Zhuhai and Guilin on solid waste management, wastewater treatment and on how to become resilient cities. EU projects have also helped Chinese small and medium-sized enterprises adopt energy efficient solutions to reduce their environmental impact.

How Europe can start Trump-proofing

Source: GMF

Author: Bruce Stokes, Visiting Senior Fellow

A majority of Europeans currently believe that a second term with former United States President Donald Trump in the White House would weaken the Continent's security alliance with the U.S. — and they are right. But while Europeans may not be able to determine the outcome of the upcoming U.S. elections, they can begin to build firewalls and take other measures — measures on military preparedness, the European Union's decision-making processes, institutionalizing ties between transatlantic stakeholders, and guarding against a potential drift away from the U.S. — to safeguard their relationship.

No matter what happens in the upcoming U.S. elections, if the EU support for NATO, Ukraine and other shared transatlantic challenges withers, the glue holding the U.S. and Europe together will start to come undone.  

There's no sugarcoating it — a second Trump administration would spell major trouble for transatlantic relations. And while Europeans are, indeed, powerless to affect the outcome of the 2024 U.S. elections, they do have a year to prepare for the worst.

Please note: the English version of this issue is slightly different from our Chinese one. The views and opinions expressed in this article do not necessarily reflect the official position of the CCCEU.

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