Weekend Long Read: Liu He’s Davos Speech Explained

Editor’s note: After a three-year hiatus due to the pandemic, the World Economic Forum (WEF) returned to the Swiss town of Davos for its annual meeting. Many issues on the agenda caught global attention as the world weathers complex challenges including a looming recession, the surging cost of living, and a protracted war in Ukraine. One of the highlights was the special address delivered by China’s Vice Premier Liu He on Tuesday, reassuring investors who have been keeping their eyes peeled for clues about China’s policy direction as the country emerges from three years of strict Covid controls. The world’s second-largest economy is under unprecedented pressure from pandemic disruptions, a property crisis that could threaten the stability of the financial system, and a regulatory crackdown on the country's sprawling tech sector. Whether and how China can get its economy back on track is crucial to the world’s post-pandemic economic recovery. The International Monetary Fund has warned that a third of the global economy will be in recession in 2023. Liu, 70, became vice premier in 2018 with responsibility for overseeing China’s finance, technology, and industrial policies. He led China’s trade negotiations with the Trump administration and is known as President Xi Jinping’s chief economic adviser. A close look at his Davos speech offers important insights into China’s next chapter.