China's Vice Premier calls on West to 'abandon Cold War mentality' in Davos speech

Meeting the challenge of global economic growth requires group thinking, Beijing said

China's Vice Premier has said the Communist government stands ready to work with international partners to meet global challenges. Reuters

China has urged the western governments to “abandon the Cold War mentality” in favour of strengthening ties to tackle common challenges.

Liu He, Vice Premier of China, said the traditional ways of thinking will not provide effective solutions to climate change or break down barriers against global economic stability.

In a special address at the World Economic Forum in Davos, Switzerland, on Tuesday, Mr Liu mentioned strengthening international co-operation and maintaining world peace 11 times.

He suggested that governments around the world are not doing enough to encourage collaboration.

The politician, one of President Xi Jinping’s most trusted confidants, laid out a three-point plan as he called for a seismic change in approach.

He said Beijing is dedicated to playing its part in advancing international co-operation in a fragmented world — the theme of this year’s gathering.

Firstly, Mr Liu said teamwork is essential to ensure that the effective economic order can be maintained.

“The traditional way of thinking is not the solution,” he said. He added that leaders must “abandon the Cold War mentality” to “build a community with a shared future for mankind”.

“We believe that an equitable international economic order must be preserved by all of us,” he said, and insisted that fair distribution of goods and services and a strong social safety net are essential.

Liu He, Vice Premier of China, at the World Economic Forum in Davos. EPA

Secondly, Mr Liu said international partners must bang heads to find ways to “strike a good balance between inflation and growth”. China “stands ready to work with all parties” to find solutions to debts incurred by developing nations, he said.

Lastly, he highlighted the need for “common actions” in the fight against climate change.

He pledged China will honour its commitments to the international community and co-operate on the world stage to address the urgent problem.

“We need a global response to climate change,” he said.

China is one of the world's leading polluters and accounts for almost a third of carbon emissions.

The government in Beijing is committed to opening the door to foreign investment even wider, the economic tsar said, and is determined to champion entrepreneurship.

He laid out an optimistic vision for the world’s second largest economy after the battering it has taken from nearly three years of lockdowns, quarantines and strict coronavirus rules.

Despite the upheaval, he said China benefits from “overall financial stability” in what is a volatile atmosphere.

Looking ahead, he said the focus will be on expanding domestic demand, keeping industrial and supply chains smooth, supporting healthy development of the private sector, attracting foreign investment and preventing economic risks.

He said with hard work, Beijing is confident that in 2023 growth “will most likely return to its normal trend and the Chinese economy will see a significant improvement”.

Earlier, Klaus Schwab, chairman of the World Economic Forum, welcomed Mr Liu to the stage and noted that the international community “is eager to understand the next chapter of China’s development strategy both domestically and globally”.

Mr Shwab said this was of particular interest following the Communist Party’s 20th national congress last October.

“We firmly believe that China can and will play an important role and assume a responsible role amid a fragmented world,” he added.

World Economic Forum — in pictures

Lawrence Summers, president emeritus and professor at Harvard University, speaks during a panel session on day three of the World Economic Forum's Annual Meeting in Davos, Switzerland. Bloomberg

Netherlands Prime Minister Mark Rutte and Tanzanian President Samia Hassan during a panel discussion in Davos. AP

EU Parliament President Roberta Metsola speaks at the forum. AP

Greek Prime Minister Kyriakos Mitsotakis, left, speaks to CNN journalist Fareed Zakaria at the Congress Centre in Davos. AFP

Iranian-American journalist and women's rights activist Masih Alinejad takes part in an interview with a TV news channel in Davos. AFP

Mr Mitsotakis is seen on a TV camera viewfinder at the Congress Centre in Davos. AFP

Faisal Alibrahim, Saudi Arabia's Economy and Planning Minister, speaks during a panel session in Davos. Bloomberg

Climate activist Greta Thunberg addresses journalists in Davos. Reuters

Mary Erdoes, chief executive of JP Morgan Chase's asset wealth management arm, listens during a panel session in Davos. Bloomberg

Officials take part in the World Economic Forum's Busting Business Barriers session. Photo: World Economic Forum

Dr Thani Al Zeyoudi, the UAE Minister of State for Foreign Trade, is among the senior officials in Davos. Photo: WEF

Former US vice president Al Gore, who is also a member of board of trustees of the forum, at a session titled Leading the Charge through Earth's New Normal. Photo: WEF

Famed cellist Yo-Yo Ma performs at the event. Photo: WEF

Deemah Al Yahya, secretary general of the Digital Co-operation Organisation in Saudi Arabia, at the forum's Turning Technologies into the Markets of Tomorrow session. Photo: WEF

US climate change envoy John Kerry at the Keeping the Pace on Climate session. Photo: WEF

Shoes worn by Rodrigo Oliveira, founder of Brazilian group Green Mining, emphasise support for environmental initiatives. Photo: WEF

Mina Al-Oraibi, Editor in Chief of The National, moderates a session on the Middle East that featured Prince Faisal bin Farhan, Saudi Arabia's Minister of Foreign Affairs. Photo: WEF

Officials and delegates take part in the Middle East: Meeting Point or Battleground? session. Photo: WEF

Polish President Andrzej Duda speaks at the Restoring Security and Peace session. Photo: WEF

Mr Duda, Nato chief Jens Stoltenberg, Canada's Deputy Prime Minister Chrystia Freeland, Yuliia Svyrydenko, first deputy prime minister in Ukraine, and US Director of National Intelligence Avril Haines attend a session hosted by broadcaster Fareed Zakaria. Photo: WEF

Olena Zelenska, Ukraine's first lady, watches as Ukrainian President Volodymyr Zelenskyy addresses the forum. Photo: WEF

Mohamad Al Ississ, Jordan's Minister of Finance, takes part in the session titled The Middle East: Meeting Point or Battleground? Photo: WEF

Mr Zelenskyy gives a video address to the forum in Davos. AFP

Former US secretary of state Henry Kissinger appears on screen during the annual meeting of the World Economic Forum, in Davos. AP

US governors Brian Kemp and JB Pritzker, senators Chris Coons, Joe Manchin and Kyrsten Sinema and representatives Maria Salazar and Mikie Sherrill take part in a panel discussion at Davos. AP

Saudi Foreign Minister Prince Faisal bin Farhan attends a session in Davos. AFP

Chinese Vice Premier Liu He on the opening day of the forum. Bloomberg

Fifa president Gianni Infantino, left, and Patrice Motsepe, billionaire founder of African Rainbow Minerals, arrive at the forum's venue in Davos. EPA

Finland's Prime Minister Sanna Marin, right, is interviewed by Fareed Zakaria in Davos. AP

Delegates visit the refreshments area between sessions in Davos. Bloomberg

Singer Angelique Kidjo performs in Davos. EPA

From left, WEF founder Klaus Schwab, European Commission President Ursula von der Leyen, Ukrainian first lady Olena Zelenska and Swiss President Alain Berset pose together during the 53rd annual meeting of the forum in Davos. EPA

Ms Zelenska hit out at Russia and said 'we cannot allow a new Chernobyl to happen'. AFP

Mr Berset addresses delegates in Davos. EPA

Ms von der Leyen said the 27-nation bloc would become much more forceful in countering unfair trading practices. Reuters

Ferdinand Marcos, President of the Philippines, arrives to attend a session in Davos. AP

Former US vice president Al Gore is expected to discuss decarbonisation, as well as efforts to build clean energy infrastructure and ensure equitable growth. EPA

From second left, WEF president Borge Brende, Carbon Direct vice chairwoman Nili Gilbert and US climate envoy John Kerry with other delegates in Davos. EPA

Credit Suisse chairman Axel Lehmann speaks during the 53rd WEF Annual Meeting. EPA

DP World chief executive Sultan bin Sulayem in Davos. Bloomberg

UBS chief executive Ralph Hamers speaks during a television interview on the opening day of the forum. Bloomberg

From left, Hong Kong Exchanges & Clearing Ltd chairwoman Laura Cha, Banco de Portugal Governor Mario Centeno, Bloomberg TV anchor Francine Lacqua, Credit Suisse chairman Axel Lehmann and S&P Global president and chief executive Douglas Peterson during a panel session on the opening day of the forum. Bloomberg

Mr Kerry delivers a speech at the Congress Centre in Davos. AFP

Musicians take part in a concert during the official opening of the forum. Photo: WEF

Jordanian vocalist Farah Siraj, centre, and Egyptian-Australian multi-instrumentalist Joseph Tawadros, left, perform during the I Sea You concert. Photo: WEF

Tawadros is one of the world's leading oud performers and composers. Photo: WEF

WEF managing director Alois Zwinggi speaks during a session called 'In Harmony with Nature'. Photo: WEF

Gail Whiteman, left, a professor of sustainability at the University of Exeter Business School, speaks during the 'In Harmony with Nature' panel discussion. Photo: WEF

Mr Schwab delivers a speech during the 'Crystal Award' ceremony in Davos. AFP

Actor Idris Elba, right, and his wife Sabrina Dhowre Elba, left, smile on the podium during the Crystal Award ceremony. AP

Kyiv Mayor Vitali Klitschko attends the Crystal Award ceremony. EPA

Singer Renee Fleming, right, receives a Crystal Award from Hilde Schwab, wife of WEF founder Klaus Schwab. AP

Delegates at the welcome reception before the official start of the forum. Bloomberg

Food for attendees at the welcome reception. Bloomberg

A kiosk serving hot chocolate from the UAE at the forum. Bloomberg

The Infosys pavilion at the forum. Bloomberg

Ukraine's pavilion in Davos. Reuters

Swiss police officers on patrol in Davos. Reuters

From left, German Vice Chancellor Robert Habeck with Swiss ministers Guy Parmelin and Albert Roesti before the start of a bilateral meeting in Davos. EPA

A delegate passes a digital display in Davos. Bloomberg