GENEVA — The emergence of the huge and rapidly growing economies of China and India, the value of the Chinese yuan, concerns over high oil prices, and the future of innovation and creativity are issues expected to take center stage during this year’s World Economic Forum in Davos, Switzerland.
Klaus Schwab, founder and executive chairman of the WEF, said there’s “a power shift from west to east,” marked by the rise of China and India. This should not be seen as a threat, but an opportunity and part of the globalization of the world economy, Schwab said. The five-day WEF summit in the Swiss mountain resort opens today.
More than 735 chairmen and chief executive officers from the world’s leading corporations, including 70 percent from the largest 100 companies, along with 15 world leaders, 60 cabinet ministers, and top international officials and civic leaders are scheduled to participate. There are a series of sessions planned targeting China’s and India’s growing importance in the world economy.
Zhou Xiaochuan, governor of the People’s Bank of China, and Zeng Peiyan, China’s vice premier, are among the substantial Chinese delegation slated to attend. India’s Minister of Commerce & Industry, Kamal Nath, and Finance Minister Palaniappan Chidambaram are among the Indian delegation. WEF insiders expect lively sessions over the increased friction between China and the U.S. and European Union over monetary and trade issues.
China’s expanding trade surplus, which reached $101.9 billion in 2005, and growing foreign-exchange reserves, now standing at more than $818 billion, are expected to stir calls for an appreciation of the Chinese currency. Some influential business groups in the U.S. and the EU maintain the yuan is undervalued and charge this gives Chinese products an unfair advantage in global markets, which China and some global economists contest.
Numerous sessions are slated focussing on the challenges faced by corporations in bringing innovation to market faster and on the need to connect to customers in new ways. Externalizing innovation and creativity, including the benefits and risks of outsourcing innovation, and how firms can protect intellectual property rights are also planned to be discussed.
Concerns over high oil prices, fueled by the growing demand by China and India, fears over the escalating nuclear standoff with Iran and the threat of terrorism are also high on the WEF agenda.
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