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(Bloomberg) -- In 2017, weeks after Donald Trump’s first presidential election victory, Xi Jinping became the first Chinese head of state to address the World Economic Forum in Davos, Switzerland — winning applause as he inveighed against protectionism and declared that a trade war would hurt both sides.
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This time around, China’s presence at the annual Alpine confab of political, business and financial leaders is well toned down in the wake of Trump’s return to the White House. The nation’s top official at the forum is a vice premier, Ding Xuexiang. And in contrast with Xi’s sweeping language five years ago, Ding struck a conciliatory tone, vowing to rebalance trade — an acknowledgment of a key concern for Trump — by promising to import more competitive, quality products and services.
The representation is also a downgrade from last year, when Xi’s top lieutenant, Premier Li Qiang, made the trek to Davos to assure the global elite that China’s economic stewardship of the world’s second-biggest economy would ensure that its 5% growth target would be reached.
This year’s gathering comes as Beijing awaits a full picture of the Trump administration’s plans for bilateral ties. An apparent reprieve from the US leader’s highly anticipated tariff rollout lasted some 24 hours before he warned that a 10% levy could be imposed on China as soon as Feb 1.
“It was inevitable that China would wish to play a lower key role, because they simply could not know what the outcome of the election was going to be,” said John Quelch, executive vice-chancellor of Suzhou, China’s Duke Kunshan University. Attending his 11th WEF at Davos, Quelch noted Chinese government and business presence this year was subdued on public-facing platforms such as panels.
Indeed, as companies with globally recognized names unveiled large shop-front banners and logos up and down the promenade at Davos at the opening of the forum, there was one well-known firm that remained hard to spot, shielded behind a vast white awning: TikTok, the social media giant owned by Beijing-based ByteDance Ltd., which now has a question mark hanging over its US operations.
One TikTok staff member welcomed visitors to the firm’s stand. But it’s somewhat out-of-sight status underscored a muted presence that amounted to one of two key takeaways for one executive attending the forum. The second: a contingent of delegates rethinking how to approach business with the Asian nation as it enters a period of slower growth and geopolitical tensions. Despite the sobering reality check, there’s a realization that China cannot just be ignored, said the executive, who didn’t wish to be identified discussing private conversations.