Full Breakdown
China Positions Itself as a Global Trade Partner at Davos
1/21/2026, 1:16:32 AM
China's Commitment to Global Trade
At the World Economic Forum (WEF) in Davos on January 20, 2026, Chinese Vice-Premier He Lifeng emphasized China's commitment to becoming a significant player in global trade, stating that the country has never deliberately pursued a trade surplus. He expressed China's willingness to expand imports and leverage its vast market to foster international trade relations. "We are not only willing to be the world’s factory, but also, more eagerly, to be the world’s market," He stated, highlighting China's intention to be a reliable trade partner amid rising global tensions.
Economic Context and Challenges
China's economy recorded a trade surplus of nearly $1.2 trillion in 2025, raising concerns among trading partners about the sustainability of its export-led growth model. Despite achieving its growth target of around 5%, the country faced a slowdown, with economic expansion hitting a three-year low in the fourth quarter. He acknowledged that while China aims to boost domestic demand, it also seeks to address the challenges posed by increasing protectionism from other nations, particularly the United States.
Criticism of Unilateral Trade Practices
In his address, He criticized the "unilateral practices" of certain countries, implicitly targeting the United States under President Donald Trump's administration. He argued that such actions violate World Trade Organization (WTO) principles and threaten the global economic order. "Tariffs and trade wars have no winners," He stated, advocating for multilateralism and cooperation in international trade.
Global Reactions and Cooperation
The meeting in Davos saw discussions between U.S. Treasury Secretary Scott Bessent and He Lifeng, where Bessent noted that China had fulfilled its commitments to purchase U.S. soybeans, indicating a potential thaw in trade relations. He Lifeng's remarks were echoed by Canadian Prime Minister Mark Carney, who described China as "more predictable" than the U.S. in trade matters, following Canada's decision to reduce tariffs on Chinese electric vehicles.
Official Statements & Responses
He Lifeng reiterated China's commitment to opening its market wider to foreign goods and services, inviting global companies to explore opportunities within China. He emphasized that "China wants to buy but the other party does not want to sell," reflecting the complexities of international trade dynamics.
Verbatim Quotes
- “We are not only willing to be the world’s factory, but also, more eagerly, to be the world’s market,” — He Lifeng, Vice-Premier of China
- “Tariffs and trade war have no winners,” — He Lifeng, Vice-Premier of China
- “The unilateral acts and trade deals of certain countries clearly violate the fundamental principles and rules of the [World Trade Organization], and severely impact the global economic and trade order,” — He Lifeng, Vice-Premier of China
What's Next
As the WEF continues, the focus will remain on how China navigates its trade relationships amid ongoing tensions with the U.S. and other nations. The outcomes of these discussions may shape future trade policies and international economic cooperation.
