Davos Offers China Chance to Define World Role: Swiss President

(Bern, Switzerland) – After a turbulent year, the world is keen to hear what global political leaders and business elites will say at the World Economic Forum this week in Davos, Switzerland.

For about four decades, each January the resort town in the Swiss Alps has become a focal point for worldwide audiences, hosting thousands of elite guests, including heads of state, to discuss global issues.

This year’s meetings are attracting special attention as they come just days before the inauguration of Donald Trump, even though the U.S. president-elect reportedly won’t send an official representative to the event.

This year’s event will also see Chinese president Xi Jinping attend for the first time, with a speech planned for Tuesday. Xi is the first Chinese president to attend the meeting. Before the Davos event, Xi paid his first state visit to Switzerland, and held a series of discussions on bilateral partnerships.

Doris Leuthard, President of the Swiss Confederation, said China and Switzerland should work together to promote global cooperation and fight exclusionary policies, despite rising global protectionism.

“It will be a very important visit for the whole of Europe. … I think China can use this situation to show its world power status and how it can be a factor for stability,” Leuthard said during a meeting with media.

On Jan. 12, Leuthard talked with Caixin in Bern, where she explained the challenges facing Europe and how she sees China’s role as a global leader.

The following are excerpts from the interview.

Caixin: Switzerland has hosted the World Economic Forum for over four decades. How do you think the Davos meeting can play a more constructive role in the world, especially after the tremendous year of 2016 that saw rising doubts about such elite groups?

Doris Leuthard: I think Davos is a good starting point to see big issues at the start of every year. For the moment, I think we have a lot of [uncertainties]. The role of [Russian] President Putin is of growing importance. We’ll have new elections in Europe and see new presidents coming this year. We still have a lot of countries with high debt and unemployment is still an issue. We still have a lot of cheap money flooding the market that is not good for recovery and brings inflation concerns. These issues have not been solved so far in Europe.

We need some perspective. Therefore I think you will see some attempts to answer these questions in Davos this year. This year’s theme, “leadership,” is quite important, from not only political leaders but also economic ones. Almost all chief executives of big multinationals will attend. People can learn a lot in a short time, and understand future trends. It is also important to political circles because it tells us what to do next and what policymakers should prepare.

CX: Over the past year we’ve seen mounting pressure opposing the idea of global integration. How do you see the role of China and Switzerland in the world with rising uncertainties?

DL: For example, at this moment in Geneva, Switzerland, we are offering our services that perhaps will help to find a good solution in Cyprus. And we will have a conference on Syria in February. Behind the scenes, with our diplomacy and our contacts, (we are trying to make) leaders sit at the same table. I think it is only possible that through dialogue and understanding others, we can find common solutions. Switzerland has tried to have some new ideas and show some ways that issues can be solved.

China is in another position. China is a global leader as a member of the G20. It has to define its role. I think you will have to decide what is your role militarily because it’s always important that we don’t have conflicts with violence and wars, and sometimes it helps when big powers agree it’s not right to intervene with war. Economically, China is playing a major role and it will be interesting to listen to President Xi Jinping on how he sees the global economic situation in 2017 and how China can contribute. China has concentrated a lot on exports in past years and now it has to develop its internal market.

On climate change, China will also play a very important role. It will be very important that China follows the way (it promised) and that countries like India and Brazil follow China’s example.

CX: Is there anything China can learn from Switzerland about pollution control?

DL: I think it’s helpful that Chinese ministries have begun measuring air quality and other information so that you can have enough data to make forecasts. Most of China’s (pollution) comes from coal. I think China made the right decision (to cut coal use), but it needs time. In transportation, we both agree that mobility is a fact of life. But it will be helpful if more cars can be electric rather than fossil fuel. We worked very well with (China’s) Ministry of Water Resources on flood control in cities. Also we are sharing our expertise in climate control and have launched Swiss-financed projects to protect people from flooding and improve technology in dams.

CX: Switzerland has been one of the most innovative countries. How does the government play a role to boost innovation?

DL: This requires strong cooperation between the private sector, universities and government. First you need a skilled labor force. It is the duty of the government to invest enough money in our children and education. Second, we have lots of small- and medium-sized enterprises which are organized sector by sector. With strong organization, they are helping each other in questions on how we can educate young people. They are also political advisors to us because they tell us their needs and find frameworks that can help them improve. It takes a lot of time but it is important (for the government) to have close exchange with different sectors to know exactly what works, what doesn’t and their future needs, and then add quickly to the education system. This is something that China should pay attention to.

CX: With the opening of the Gotthard Base Tunnel last June, Switzerland showed its focus on Europe’s transportation development. China is also helping to link Europe and Asia with President Xi’s signature One Belt, One Road strategy. How can the two countries cooperate in Eurasia’s infrastructure push?

DL: Transport infrastructure is key for economic growth. Now we have increasing mobility, which includes transportation of goods and people. We have the European corridor from Rotterdam to the Mediterranean Sea, passing through the Gotthard Base Tunnel. … We followed the discussion on (the One Belt One Road initiative) and I think it could provide a transport corridor to Europe finally. Therefore we look with big interest to these developments in China and the neighboring areas.

Contact report Han Wei (weihan@caixin.com)