George Soros, mete, is known. But the words, the 88-year-old Investor dedicated to the Chinese President Xi Jinping, for his conditions hard: Xi is the “most dangerous enemies of an open society,” said Soros forum this week at a dinner in Davos, Nobel hotel on the edge of the world economy. The Chinese combination of a repressive Regim
Investor George Soros in Davos
e and monopolistic technology corporations, a “deadly threat”.
as hard as Soros said, officially, no one else in the congregation Davos economic elite. However, many of the participants, is the concern that the economic conflicts between China and the United States to a real economy could grow war that draws the whole world is affected.
in the long term, it is no less than the question of who are the communication technologies and to the 21st century. Century will dominate. In the short term, such a conflict could plunge the world economy into a crisis.
This danger seems all the greater as the economy cools anyway sensitive. Just recently, the International monetary Fund has set its growth forecasts downwards. For Germany, the Federal government is expected to be even now only a minimal growth of one percent. And China just had to report only the weakest year in three decades.
With Germany and China, two countries are caught up in the downturn, have driven in the last years of the Boom.
“The policy must now make no mistakes”
While the majority of Economists go so far that it is more likely to be a normal downturn, a severe recession. But, above all, the smoldering Trade dispute between the United States and China, the experts are careful.
The dispute is primarily of U.S. President Donald Trump, the American trade deficit with China is a Nuisance. To 1. March there must be an agreement, otherwise the U.S.-punitive tariffs enter into force, China would in turn answer with other duties.
“The greatest potential for distortions I see in the trade conflicts,” says Axel Weber, Chairman of Swiss Bank UBS and former President of the Federal Bank. “There are already set back Investments and location decisions postponed.”
UBS Chairman Axel Weber
“The policy must now make no mistake, whether it’s the Brexit or in the trade conflict,” says Philipp Hildebrand, Vice-chief of the world’s largest asset Manager Blackrock. When it come to a crisis, there is little more reaction possibilities to counter them.
As most of the participants in Davos sets Hildebrand to the fact that it is in a trade dispute with a compromise before 1. March. But for him, the discussion of the criminal, customs duties, only the surface of a deep-seated conflict.
“It’s no longer just about trade, but about the strategic competition between China and the United States – especially in the digital economy,” said the Swiss, whose employer, Blackrock managed around six trillion dollars. “This is a reason more fundamental conflict that will not disappear if Trump is in the office.”
Similar to Jin Keyu sees it. The Chinese Economist is something of a new Star in Davos. She has studied at Harvard, teaches at the London School of Economics and explains the Western Top-managers, how China works really.
The trade in goods, there is actually no real competition with the United States, says Jin. Since both States have always complemented well. “With the technology now looks very different.” There is a fierce competition had broken out.
“security risk for the Rest of the world”
In essence, it is about what large corporations to win in the future, the dominance – and what political consequences this has. Whether Amazon, Facebook or Netflix in the Western world, especially American companies, which dominate the everyday life of many people. At least until now.
Because Chinese Tech giants that dominate at home anyway, pushing more and more into the world’s markets: the online retailer Alibaba, for example, or the IT giant Tencent. The global telecommunications equipment supplier Huawei, the United States has accused of espionage against the Chinese company ZTE, they had adopted in the meantime, sanctions.
Huawei Manager Richard Yu
China critics such as the American billionaire Soros is also a struggle for the freedom of the people to see in the fight of the corporations. Because all of these companies not only collect a lot of data, but they maintain, at least in China also has close ties to the government of an authoritarian regime.
When companies such as Huawei and ZTE dominated the emerging market of cellular wireless standards 5G, fears Soros, “this would be an unacceptable security risk for the Rest of the world”. The United States must therefore work much harder against the Chinese companies.
Slightly different, the Chinese Jin sees this. “China wants to have a normal relationship with the United States,” she says. “But it does not want to the United States.”
no Matter how the conflict out like: For Europe it could be so uncomfortable. Because in the competition for the digital domination of the old continent is lost to a large extent.
“Among the ten largest technology companies in the world, seven American and three Asian companies – and not a single one from Europe,” said UBS Manager Weber. He would wish that the policy will change anything about it. “It is part of good risk management, not to make too technologically dependent, as Europe currently is.”