The annual World Economic Forum (WEF) meeting kicked off in Davos, Switzerland, bringing together global leaders to discuss pressing economic challenges, geopolitical shifts, and the transition to sustainable energy. This year's agenda gained additional attention with the inauguration of Donald Trump as the 47th president of the United States.
As leaders converge in Davos, a central theme has emerged around how the new American administration will influence global norms and reshape relations between the world's two largest economies. Rising protectionist sentiments in the White House, evidenced by tariff threats, TikTok bans, and trade barriers against Chinese electric vehicles, have sparked concerns among international observers.
Mina Al-Oraibi, editor-in-chief of The National, emphasized the global apprehension towards the potential decoupling of the U.S. and China. \"The rest of the world hopes there won't be a decoupling between the U.S. and China,\" she stated in an exclusive interview. \"China is not only a rising power but a significant one. The current superpower seeks to limit that rise, especially its technological advancement.\"
Although President-elect Trump has not imposed immediate tariffs upon taking office, his administration has signaled intentions to address what it perceives as \"unfair\" trade practices. However, WEF participants view tariffs as counterproductive. Patrick Foulis, foreign editor at The Economist, commented, \"A tariff is really not helpful at all for China and that makes things even worse. China has the ability to restart its economy.\"
Sam Jacobs, editor-in-chief of TIME, added, \"In large majorities, Americans recognize that tariffs will increase the prices of goods.\"
The inclination towards decoupling from the U.S. is also impacting globalization. Al-Oraibi highlighted, \"Protectionism cannot work at a time where the U.S. is also the main supporter of capitalism. Open borders are essential for capitalism and markets to thrive. Rising protectionism poses a global threat to the direction of the world economy.\"
Reference(s):
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