Bill Winters, chief executive officer of Standard Chartered, said the U.S. Federal Reserve looks set to pause its interest rate cycle in June get a better read on the latest inflation data.
Bloomberg | Getty Images
Former U.S. President Donald Trump would be a “transactional president” if he returns to power, but is unlikely to blow up the Biden administration’s rebuilding of relations with China, according to Standard Chartered CEO Bill Winters.
Trump won the Iowa caucus by around 30 points over his closest rival and is the clear favorite to secure the Republican nomination for the 2024 presidential election, despite facing 91 felony counts across numerous criminal cases relating to his attempts to overturn his 2020 election defeat, mishandling of classified documents and hush-money payments to a porn star.
During his last term in office, Trump took a combative stance toward Beijing and triggered a trade war with a slew of tariffs on Chinese goods and constant threats of more economically punitive measures.
President Joe Biden‘s administration has sought to repair the fragile relationship. U.S. Treasury Secretary Janet Yellen and Commerce Secretary Gina Raimondo visited China last summer, and Biden met Chinese President Xi Jinping on the sidelines of the Asia-Pacific Economic Cooperation leaders’ meeting in San Francisco in November.
Speaking to CNBC at the World Economic Forum in Davos, Switzerland, on Tuesday, Winters said Washington and Beijing are now “pretty interlinked” and that for any president to “aggressively disentangle” would be bad for the U.S., Chinese and global economies.
“Nobody really wants that or needs that right now, so I think the slight re-engagement that we’re seeing through the Biden administration, visits from the Commerce Secretary and Janet Yellen etc., are an indication to me that the U.S. is looking to stabilize,” he said.
“If Trump becomes president, we know that he’s a transactional president, and there’s probably a transaction in there someplace that keeps the economy on an even keel without fundamentally disrupting that relationship, but of course we watch all the time and we’re well aware that there could be either unintended consequences or accidents, but I’m staying pretty optimistic that we could avoid the worst.”
Though it’s headquartered in the U.K., Standard Chartered earns most of its revenue in Asia, and Winters also said he remains “very optimistic about the Chinese economy in the medium-, long-term” despite its well-documented short-term headwinds.
Taiwan and China flags together textile cloth, fabric texture
Oleksii Liskonih | Istock | Getty Images
TAIPEI — China dismissed the outcome of Taiwan’s Saturday elections, saying its ruling Democratic Progressive Party does not represent mainstream public opinion after it failed to win a majority in the presidential and legislative votes.
“Taiwan is China’s Taiwan,” Chen Binhua, the spokesperson for the Taiwan Affairs Office of the State Council, said on Saturday after DPP’s Lai Ching-te emerged as the winner of the self-governing island’s presidential contest with more than 40% of the popular vote.
“This election cannot change the basic pattern and the development of cross-Strait relations, nor can it change the common desire of compatriots on both sides of the Taiwan Strait to draw closer,” Chen added, according to a CNBC translation of a report from Xinhua, the official state news agency.
China has never relinquished its claim over Taiwan — which has been self-governing since the Chinese Nationalist Party, or Kuomintang, fled to the island following its defeat in the Chinese civil war in 1949.
The outcome of Taiwan’s presidential and legislative elections will likely shape China’s posture toward the island, while also influencing China-U.S. relations and security in the broader Indo-Pacific region.
Taiwan’s President-elect Lai Ching-te (left) gestures beside his running mate Hsiao Bi-khim during a rally outside the headquarters of the Democratic Progressive Party (DPP) in Taipei on January 13, 2024, after winning the presidential election.
Yasuyoshi Chiba | AFP | Getty Images
TAIPEI — Taiwan’s ruling Democratic Progressive Party won an unprecedented third-straight presidential term, as incoming leader Lai Ching-te pledged to stay open-minded in his approach toward governance, while committing to forging consensus in a split legislature.
The outcome of the presidential election on Saturday riled Beijing, which has repeatedly labeled Lai as a “stubborn worker for Taiwan independence” and a dangerous separatist. There are also fears this could in turn influence frosty China-U.S. relations and security in the broader Indo-Pacific region, with China having escalated military activity in the Taiwan Strait and other nearby waters.
“As president, I have an important responsibility to maintain peace and stability in the Taiwan Straits,” Lai said in a press conference, in an official party translation of his comments in Mandarin. He added though that he is also “determined to safeguard Taiwan from threats and intimidation from China.”
“I will act in accordance with our democratic and free constitutional order, in a manner that is balanced and maintains the cross-Straits status quo,” he added. “Under the principles of dignity and parity, we will use exchanges to replace obstructionism, dialogue to replace confrontation, and confidently present exchanges and cooperation with China.”
The Chinese Communist Party has refused to engage with outgoing President Tsai Ing-wen since she assumed office in 2016. Tsai did not stand at this election because she has served the maximum two presidential terms.
The DPP has not accepted the so-called “1992 Consensus,” disputing the tacit agreement for “one China” between the then-KMT government and Chinese Communist Party officials, which Beijing assumes as the basis for cross-Straits engagement.
Still, in his post-election comments in Mandarin, Lai invoked the official name of Taiwan — the Republic of China — at least twice.
Supporters of the Democratic Progressive party (DPP) await the announcement of official results at a rally on January 13, 2024 in Taipei, Taiwan.
Annabelle Chih | Getty Images News | Getty Images
DPP’s Lai — Taiwan’s current vice-president — won more than 40% of the popular vote in Taiwan’s eighth presidential election. DPP is the first party to win the presidential office three times in row since direct presidential elections were introduced in 1996. Beijing had framed the election as a choice between “peace and war, prosperity and decline.”
Kuomintang or KMT, Beijing’s preferred political partner, gained roughly 33% of the vote with Hou You-yi at the top of its ticket. Ko Wen-je — the surly, straight-talking former Taipei mayor who ran under the banner of the Taiwan People’s Party that was formed only in 2019 — received just over 26% of the vote.
Voter turnout appeared to be the second-weakest since direct presidential elections started in Taiwan in 1996. This year, 71.9% of all eligible voters cast their ballots for the presidential election, according to preliminary data from Taiwan’s Central Election Commission.
China dismissed the outcome of Taiwan’s Saturday elections, saying its ruling Democratic Progressive Party does not represent the mainstream public opinion.
“Taiwan is China’s Taiwan,” Chen Binhua, the spokesperson for the Taiwan Affairs Office of the State Council, said on Saturday shortly after DPP’s Lai emerged as the winner.
“This election cannot change the basic pattern and the development of cross-Strait relations, nor can it change the common desire of compatriots on both sides of the Taiwan Strait to draw closer,” Chen added, according to a CNBC translation of a report from Xinhua, the official state news agency.
China has never relinquished its claim over Taiwan — which has been self-governing since the Chinese nationalist party, or Kuomintang, fled to the island following its defeat in the Chinese civil war in 1949.
The U.S. response starkly differed, but was broadly consistent with its past positions.
“We … congratulate the Taiwan people for once again demonstrating the strength of their robust democratic system and electoral process,” U.S. Secretary of State Antony Blinken said in a statement.
“The United States is committed to maintaining cross-Strait peace and stability, and the peaceful resolution of differences, free from coercion and pressure,” he added.
The outcome of the race to control Taiwan’s 113-seat legislature though is far less clear, with the DPP losing its majority. A hung parliament could well hobble Lai’s policy agenda, while heralding a return of the kind of notorious open feuding among Taiwan’s legislators.
“On the legislative elections, the DPP did not hold onto a majority,” Lai said. “This means we did not work hard enough, and there are areas where we must humbly review and look back on.”
As it stands, the new Taiwan government will have its hands full, with voters largely concerned with bread-and-butter issues, particularly stagnant wages at a time of escalating rents and home prices that have been worsened by high inflation.
These issues have largely helped buoy Ko’s popularity as he positioned himself as a political outsider.
“Taiwan People’s Party got more votes than expected. Ko got 25%, showing there is still a significant number of voters wanting a change,” Wei-Ting Yen, an assistant professor in government at Franklin and Marshall College, told CNBC.
“The social force is there, and the Lai administration has to address the social and economic issues right on,” she said. “People may be supporting the DPP’s foreign policy directions, but they are not necessarily supporting them for domestic policies.”
At the same press conference on Saturday after his two opponents conceded, Lai said he will carefully consider and include policy ideas and positions of his two electoral rivals that further Taiwan’s interests.
In a nod to issues that dominated the presidential election campaign, Lai singled out the financial sustainability of Taiwan’s labor and health insurance, along with the country’s energy transition as urgent issues that he will prioritize in forging consensus.
Lai also said he will appoint the most qualified professionals and personnel regardless of political affiliations in the “spirit of a democratic alliance.”
“The elections have told us that the people expect a strong government and effective checks and balances,” Lai said. “As for the new structure of the new legislature, Taiwan must build a new political environment of communication, consultation, participation, and cooperation.”
Still, Lai also had one eye on the broader strategic significance of his electoral victory — however diminished it may seem in comparison to the DPP’s comfortable victory in the presidential and legislative elections in 2016.
“Through our actions, the Taiwanese people have successfully resisted efforts from external forces to influence this election. We trust that only the people of Taiwan have the right to choose their own president,” Lai said.
Taiwan’s DPP-led government has often accused Beijing of vote interference either by military intimidation or by co-opting Taiwan’s business elite due to their economic reliance on China.
In the run-up to Saturday’s vote, Lai said that Beijing’s meddling is “the most serious” at this elections.
Xi told U.S. counterpart Joe Biden on the sidelines of the APEC leaders summit in November that Taiwan has always been the “most important and sensitive” issue in China-U.S. relations.
Prior to Saturday’s elections, a senior Biden administration official said the White House is preparing for several different outcomes. Biden has pledged to defend Taiwan in the event of a China invasion, a position that has irked Beijing.
Former U.S. House Speaker Nancy Pelosi visited Taiwan in 2022, becoming the highest-ranking U.S. official to visit the island in over two decades. Her trip was one reason that communication between the world’s two leading powers ground to a halt before a tentative resumption only months ago.
“As one of the first and most highly anticipated elections of 2024, Taiwan has achieved a victory for the community of democracy,” Lai said. “We are telling the international community that between democracy and authoritarianism, we will stand on the side of democracy.”
Taiwan’s Vice President Lai Ching-te won the self-ruled island’s presidential election on Saturday in a blow to China, which had branded him a “destroyer of peace.”
China had warned Taiwan its contest amounted to a choice between war and peace. Beijing claims sovereignty over the island and has vowed to unify with it—through force if necessary—though the Chinese Communist Party has never governed there. The United States supports Taiwan’s self-rule and provides it with defensive weapons, to China’s fury.
Taiwan’s election comes at a time of global turbulence, with the United States already preoccupied supporting wars in Ukraine against China’s Russian ally and in the Middle East, where Israel is fighting Iranian-backed Hamas and Hezbollah and where the U.S. has struck Yemen after related attacks on shipping by Houthi rebels.
The vote in Taiwan handed the incumbent Democratic Progressive Party (DPP) an unprecedented third term in power.
The election pitted Lai of the Beijing-skeptic ruling party against New Taipei City Mayor Hou Yu-ih of main opposition party the Kuomintang (KMT) and Ko Wen-je, former Taipei mayor and founder of the upstart Taiwan People’s Party.
Hou conceded defeat in a speech at his campaign headquarters. Results showed Lai with over 40 percent of the vote counted at that point with just over 33 percent for Hou and 26 percent for Ko.
Some 19.54 million citizens, or 83% of the population, were eligible to cast their ballots, including about 1.03 million first-time voters, according to Taiwan’s Central Election Commission.
Supporters of Taiwan’s ruling party candidate Lai Ching-te celebrate early results showing him in the lead. Lai won the election in a blow to China. Matthew Tostevin for Newsweek
China had labeled Lai a “destroyer of peace across the Taiwan Strait” and had made clear that Hou was its favored candidate. The ruling party had accused China of using all means to interfere in the vote. Chinese President Xi Jinping has repeatedly stressed that China sees Taiwan as an integral part of the country and will ultimately bring what it regards as a renegade province back into the fold.
“China says we are part of them. But that’s not the case… Lai is the best candidate, in my opinion. He is the one who can stop the war.” Alex Liu, a Taipei resident in his 20s told Newsweek after voting. “Other parties will sell out to China.”
The United States has long supported Taiwan’s self-rule, and all three candidates had underscored the importance of amicable relations with Washington.
Their differences on policy with Beijing were nuanced. None of the candidates had said they would declare independence — the absolute red line for China. Likewise, none of them had said they would seek the unification that China wants but which is opposed by the vast majority of people in Taiwan.
Most Taiwanese currently favor the maintenance of the status quo, in which Taiwan continues to administer itself but does not declare independence.
While the DPP has held onto the presidency, it appeared to have lost its grip on Taiwan’s 113-seat egislature, wwhich would make it harder to govern.
Sean King, an Asia scholar and senior vice president of New York-based consultancy Park Strategies told Newsweek that for the People’s Republic of China (PRC), Taiwan stands as the most critical issue in its relations with the United States. Regaining control of the island was essential for the maintenance of Communist Party rule in the long term, he said.
“The Chinese Communist Party has staked its reputation and standing on Chinese nationalism,” he said.
Acquisition of Taiwan would provide Beijing with strategic advantages, including the projection of naval power into the Western Pacific.
“A disruption to peace and stability across the Taiwan Strait would seriously damage the global economy, and the spillover would affect all economies around the world,” a senior official in the administration of U.S. President Joe Biden said on background Thursday in a teleconference with the press centered on Taiwan’s election.
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
TAIPEI — William Lai, a China skeptic with a track record supporting independence, won the Taiwanese presidential election on Saturday in a result that risks inflaming tensions between Beijing and Washington in the South China Sea.
The election has been billed as the first major global geopolitical watershed of 2024, pitting the U.S. against China in a battle for regional influence. Beijing cast the vote as a choice between war and peace, and stressed the inevitability of the democratic island reunifying with the Communist mainland.
Lai is currently the island’s vice-president and Saturday’s poll represents an unprecedented third successive time in power for the Democratic Progressive Party (DPP) — regarded as anathema by Beijing for its insistence upon Taiwan’s sovereign rights and its close relations with the U.S., Europe and other democratic forces. In terms of global security, the fear is Beijing could now ratchet up pressure on the island with warplanes and warships, as it did after then-U.S. House Speaker Nancy Pelosi made a whirlwind visit in 2022.
Well aware of speculation that his victory could trigger heightened tensions with China’s President Xi Jinping, Lai held out an olive branch in his victory address, delivering a measured and cautious call for “exchanges and cooperation with China” on the basis of “dignity and parity.” He vowed to “replace confrontation with dialogue.”
“As president I have an important responsibility to maintain peace and stability in the Taiwan Strait. I will act in accordance with the Republic of China’s constitutional order in a manner that is balanced and maintains the cross-strait status quo,” Lai said, using Taiwan’s official name to please the more China-friendly constituents wary of his nativist Taiwan stance. “At the same time we are also determined to safeguard Taiwan from continuing threats and intimidation from China.”
Beijing’s immediate reaction was dismissive. “The elections of China’s Taiwan region are local elections and China’s internal affairs. Regardless of the result, it will not change the the basic fact that Taiwan is part of China and there is only one China in the world,” said a spokesperson for the Chinese embassy in the U.K.
With almost all the votes counted, Lai won slightly more than 40percent of the vote. The election is a first-past-the-post contest.
Hou Yu-ih from the more China-friendly Kuomintang (KMT) won 33.5 percent of ballots cast. Ko Wen-je, of the Taiwan People’s Party, scored 26.5 percent.
Hou conceded defeat at a KMT rally, saying: “I’m sorry I’ve let you down.”
“I congratulate Lai and Hsiao, but I hope they won’t let the voters down,” he said, referring to Lai and his running mate Bi-khim Hsiao, the vice presidential candidate, who’s a famous figure in Washington, having served as Taiwan’s de facto ambassador to the U.S. “Taiwan needs to be united and cannot be divided.” Hou continued. “Facing the U.S.-China-Taiwan relations, we need to approach them seriously, and leave the people with a stable environment.”
The only good news for Beijing in the results is that the DPP has lost its parliamentary majority, with the KMT vying to take over the speakership. This makes it very hard for Lai, as president, to pass legislation through a hostile parliament, and would certainly clip his wings in terms of antagonism with China.
Taiwan has no formal diplomatic relations with any major power as Beijing treats it as renegade region with no claim to sovereignty. It wields genuine economic heft, however, producing some 90 percent of the world’s most advanced semiconductors.
The only good news for Beijing in the results is a possibility the DPP could lose its parliamentary majority | Yasuyoshi Chiba/AFP via Getty Images
The winner, expected to be formally announced later Saturday, will succeed outgoing Tsai Ing-wen on May 20, amid growing fears of an escalation of tensions between between China and Taiwan. Beijing has been heavily critical of Lai over recent years, as the DPP leader has associated himself with the Taiwanese independence movement.
Indeed Lai went so far as to call himself a “pragmatic worker for Taiwan independence” in 2017, although he has now cooled that language.
Lai is a 64-year-old Harvard graduate and hails from a humble background. His father died in a mining accident when he was not yet one year old; and he was among six children raised by his mother. Before he became vice president, he was mayor of Tainan city and later Taiwan’s premier.
During the campaign, Lai ruled out declaring independence during his tenure, in an apparent bid to reassure Washington, which — alongside European allies — prefers that neither Beijing nor Taipei change the status quo unilaterally.
U.S. President Joe Biden reacted to Lai’s victory with a blunt message on Saturday: “We do not support independence” for Taiwan. The Biden administration has clarified that while it does not back Taiwanese independence, it favors dialogue between Taipei and Beijing and expects differences to be resolved peacefully and without coercion.
However, analysts and diplomats believe Beijing will increase pressure on Taiwan between now and the mid-May inauguration.
Days before the election, Beijing again threatened Taiwan by calling Lai a warmonger. “Lai … will bring Taiwan farther and farther away from peace and prosperity, and closer and closer to war and decay,” Chen Binhua, spokesman for China’s Taiwan Affairs Office, said on Thursday.
Lai is a 64-year-old Harvard graduate and hails from a humble background | Alastair Pike/AFP via Getty Images
China and the U.S. have shown signs of trying to manage the tension ahead of the election. In Washington, U.S. Secretary of State Antony Blinken met the visiting Chinese Communist Party’s international department chief Liu Jianchao, a day before the Taiwanese vote.
The U.S. and China also held the first physical military dialogue in four years, with Beijing demanding that the U.S. stop arming Taiwan. The Pentagon’s readout made no mention of how the U.S. responded to that call.
After Saturday’s vote, the U.S. State Department congratulated Lai on his victory and “the Taiwan people for once again demonstrating the strength of their robust democratic system and electoral process,” according to a statement. “The United States is committed to maintaining cross-Strait peace and stability, and the peaceful resolution of differences, free from coercion and pressure,” it said.
U.S.-China relations have seen a relative calm following U.S. President Joe Biden’s summit with China’s Xi in San Francisco in November. Xi, who’s grappling with an ailing economy at home, reportedly told Biden he had no timeline for achieving the ultimate goal of unifying Taiwan — indirectly pushing back at U.S. and Taiwanese officials’ suggestion that an invasion could take place by 2027.
TAIPEI — Forget Xi Jinping or Joe Biden for a second. Meet Taiwan’s next President William Lai, upon whom the fate of U.S.-China relations — and global security over the coming few years — is now thrust.
The 64-year-old, currently Taiwan’s vice president, has led the Democratic Progressive Party (DPP) to a historic third term in power, a first for any party since Taiwan became a democracy in 1996.
For now, the capital of Taipei feels as calm as ever. For Lai, though, the sense of victory will soon be overshadowed by a looming, extended period of uncertainty over Beijing’s next move. Taiwan’s Communist neighbor has laid bare its disapproval of Lai, whom Beijing considers the poster boy of the Taiwanese independence movement.
All eyes are now on how the Chinese leader — who less than two weeks ago warned Taiwan to face up to the “historical inevitability” of being absorbed into his Communist nation — will address the other inevitable conclusion: That the Taiwanese public have cast yet another “no” vote on Beijing.
1. Beijing doesn’t like him — at all
China has repeatedly lambasted Lai, suggesting that he will be the one bringing war to the island.
As recently as last Thursday, Beijing was trying to talk Taiwanese voters out of electing its nemesis-in-chief into the Baroque-style Presidential Office in Taipei.
“Cross-Strait relations have taken a turn for the worse in the past eight years, from peaceful development to tense confrontation,” China’s Taiwan Affairs Office spokesman Chen Binhua said, adding that Lai would now be trying to follow an “evil path” toward “military tension and war.”
While Beijing has never been a fan of the DPP, which views China as fundamentally against Taiwan’s interests , the personal disgust for Lai is also remarkable.
Part of that stems from a 2017 remark, in which Lai called himself a “worker for Taiwanese independence,” which has been repeatedly cited by Beijing as proof of his secessionist beliefs.
Without naming names, Chinese President Xi harshly criticized those promoting Taiwan independence in a speech in 2021.
Without naming names, Chinese President Xi harshly criticized those promoting Taiwan independence | Mark Schiefelbein-Pool/Getty Images
“Secession aimed at Taiwan independence is the greatest obstacle to national reunification and a grave danger to national rejuvenation,” Xi said. “Those who forget their heritage, betray their motherland, and seek to split the country will come to no good end, and will be disdained by the people and sentenced by the court of history.”
2. All eyes are on the next 4 months
Instability is expected to be on the rise over the next four months, until Lai is formally inaugurated on May 20.
No one knows how bad this could get, but Taiwanese officials and foreign diplomats say they don’t expect the situation to be as tense as the aftermath of then-U.S. House Speaker Nancy Pelosi’s visit to the island in 2022.
Already, days before the election, China sent several spy balloons to monitor Taiwan, according to the Taiwanese defense ministry. On the trade front, China was also stepping up the pressure, announcing a possible move to reintroduce tariffs on some Taiwanese products. Cases of disinformation and electoral manipulation have also been unveiled by Taiwanese authorities.
Those developments, combined, constitute what Taipei calls hybrid warfare — which now risks further escalation given Beijing’s displeasure with the new president.
No one knows how bad this could get, but Taiwanese officials and foreign diplomats say they don’t expect the situation to be as tense as the aftermath of then-U.S. House Speaker Nancy Pelosi’s visit to the island in 2022 | Annabelle Chih/Getty Images
3. Lai has to tame his independent instinct
In a way, he has already.
Speaking at the international press conference last week, Lai said he had no plan to declare independence if elected to the presidency.
DPP insiders say they expect Lai to stick to outgoing Tsai Ing-wen’s approach, without saying things that could be interpreted as unilaterally changing the status quo.
They also point to the fact that Lai chose as vice-presidential pick Bi-khim Hsiao, a close confidante with Tsai and former de facto ambassador to Washington. Hsiao has developed close links with the Biden administration, and will play a key role as a bridge between Lai and the U.S.
4. Taiwan will follow international approach
The U.S., Japan and Europe are expected to take precedence in Lai’s diplomatic outreach, while relations with China will continue to be negative.
Throughout election rallies across the island, the DPP candidate repeatedly highlighted the Tsai government’s efforts at diversifying away from the trade reliance on China, shifting the focus to the three like-minded allies.
Lai has to tame his independent instinct | Annabelle Chih/Getty Images
Southeast Asia has been another top destination for these readjusted trade flows, DPP has said.
According to Taiwanese authorities, Taiwan’s exports to China and Hong Kong last year dropped 18.1 percent compared to 2022, the biggest decrease since they started recording this set of statistics in 1982.
In contrast, Taiwanese exports to the U.S. and Europe rose by 1.6 percent and 2.9 percent, respectively, with the trade volumes reaching all-time highs.
However, critics point out that China continues to be Taiwan’s biggest trading partner, with many Taiwanese businesspeople living and working in the mainland.
5. Lai might face an uncooperative parliament
While vote counting continues, there’s a high chance Lai will be dealing with a divided parliament, the Legislative Yuan.
Before the election, the Kuomintang (KMT) party vowed to form a majority with Taiwan People’s Party in the Yuan, thereby rendering Lai’s administration effectively a minority government.
While that could pose further difficulties for Lai to roll out policies provocative to Beijing, a parliament in opposition also might be a problem when it comes to Taiwan’s much-needed defense spending.
“A divided parliament is very bad news for defense. KMT has proven that they can block defense spending, and the TPP will also try to provide what they call oversight, and make things much more difficult,” said Syaru Shirley Lin, who chairs the Center for Asia-Pacific Resilience and Innovation, a Taipei-based policy think tank.
“Although all three parties said they wanted to boost defense, days leading up to the election … I don’t think that really tells you what’s going to happen in the legislature,” Lin added. “There’s going to be a lot of policy trading.”
It’s that time of year again: Leaders, business titans, philanthropists and celebs descend on the Swiss ski town of Davos to discuss the fate of the world and do deals/shots with the global elite at the annual meeting of the World Economic Forum.
This year’s theme: “Rebuilding trust.” Prescient, given the dumpster fire the world seems to be turning into lately, both literally (climate change) and figuratively (where to even begin?).
As always, the Davos great and good will be rubbing shoulders with some of the world’s absolute top-drawer dirtbags. While there’s been a distinct dearth of Russian oligarchs in attendance at the WEF since Moscow launched its full-scale invasion of Ukraine in February 2022, and Donald Trump will be tied up with the Iowa caucus, there are still plenty of would-be autocrats, dictators, thugs, extortionists, misery merchants, spoilers and political pariahs on the Davos guest list.
1. Argentine President Javier Milei
Known as the Donald Trump of Argentina — and also as “The Madman” and “The Wig” — the chainsaw-wielding Javier Milei has it all: a fanatical supporter base, background as a TV shock jock, libertarian anarcho-capitalist policies (except when it comes to abortion), and a … memorable … hairdo.
A long-time Davos devotee (he’s been attending the WEF for years), Milei’s libertarian policies have turned from kooky thought bubbles to concerning reality after he was elected president of South America’s second-largest economy, riding a wave of discontent with the political establishment (sound familiar?). The question now is how far Milei will go in delivering on his campaign promises to hack back public service and state spending, close the Argentine central bank and drop the peso.
If you do get stuck talking to Milei in the congress center or on the slopes, here are some conversation starters …
Rumor has it that Mohammed bin Salman will make his first in-person WEF appearance at this year’s event, accompanied by a giant posse of top Saudi officials.
It’s the ultimate redemption arc for the repressive authoritarian ruler of a country with an appalling human rights record — who, according to United States intelligence, personally ordered the brutal assassination of Washington Post journalist Jamal Khashoggi inside the Saudi consulate in Istanbul in 2018.
Rumor has it that Mohammed bin Salman will make his first in-person WEF appearance at this year’s event | Leon Neal/Getty Images
Perhaps MBS would still be a WEF pariah — consigned to rubbing shoulders with mere B-listers at his own Davos in the desert — if it were not for that other one-time Davos-darling-turned-persona-non-grata: Russian President Vladimir Putin. By launching his invasion of Ukraine, which killed thousands of civilians and hundreds of thousands of troops, Putin managed to push the West back into MBS’ embrace. Guess it’s all just oil under the bridge now.
Here’s a piece of free advice: Try to avoid being caught getting a signature MBS fist-bump. Unless, of course, you’re the next person on our list …
3. Jared Kushner, founder of Affinity Partners
Jared Kushner is the closest anyone on the mountain is likely to come to Trump, the former — and possibly future — billionaire baron-cum-anti-elitist president of the United States of America.
On the one hand, a chat with The Donald’s son-in-law in the days just after the Iowa caucus would probably be quite a get for the Davos devotee. On other hand … it’s Jared Kushner.
The 43-year-old, who is married to Ivanka Trump and served as a senior adviser to the former president during his time in office, leveraged his stint in the White House to build up a lucrative consulting career, focused mainly on the Middle East.
Kushner’s private equity firm, Affinity Partners, is largely funded through Gulf countries. That includes a $2 billion investment from the Saudi Public Investment Fund, led by bin Salman — which was, coincidentally, pushed through despite objections by the crown prince’s own advisers.
Kushner struck up a friendship and alliance with MBS during his father-in-law’s term in office, raising major conflict-of-interest suspicions for the Trump administration — especially when the then-U.S. president refused to condemn the Saudi leader in Jamal Khashoggi’s murder, despite the CIA concluding he was directly involved.
Running Azerbaijan is something of a family business for the Aliyevs — Ilham assumed power after the death of his father, Heydar Aliyev, an ex-Soviet KGB officer who ruled the country for decades. And the junior Aliyev changed Azerbaijan’s constitution to pave the path to power for the next generation of his family — and appointed his own wife as vice president to boot.
5. Chinese Premier Li Qiang
Li Qiang is Chinese President Xi Jinping’s ultra-loyal right-hand man, and will represent his boss and his country at the World Economic Forum this year.
Li’s claim to infamy: imposing a brutal lockdown on the entirety of Shanghai for weeks during the coronavirus pandemic, which trapped its 25 million-plus inhabitants at home while many struggled to get food, tend to their animals or seek medical help — and tanking the city’s economy in the process.
Li’s also the guy selling (and whitewashing) China’s Uyghur policy in the Islamic world. In case you need a refresher, China has detained Uyghurs, who are mostly Muslim, in internment camps in the northwest region of Xinjiang, where there have been allegations of torture, slavery, forced sterilization, sexual abuse and brainwashing. China’s actions have been branded genocide by the U.S. State Department, and as potential crimes against humanity by the United Nations.
Li Qiang will represent his boss and his country at the World Economic Forum this year | Johannes Simon/Getty Images
Nicknamed “the Napoleon of Africa” in a nod to his campaign to seize power in 1994, Paul Kagame has ruled over the land of a thousand hills since. He’s often praised for overseeing what is probably the greatest development success story of modern Africa; he’s also a dictator.
Forced from office in 2018 by mass protests following the murder of investigative journalist Ján Kuciak and his fiancée Martina Kušnírová, Fico rose from the political ashes to become Slovakian prime minister for the fourth time late last year. His Smer party ran a Putin-friendly campaign, pledging to end all military support for Ukraine.
Slovakian courts are still working through multiple organized crime cases stemming from the last time Smer was in power, involving oligarchs alleged to have profited from state contracts; former top police brass and senior military intelligence officers; and parliamentarians from all three parties in Fico’s new coalition government.
8. President of Hungary Katalin Novák
Katalin Novák, elected Hungarian president in 2022, must’ve pulled the short straw: she’s been sent to Davos to fly the flag for the EU’s pariah state. Luckily, the 46-year-old is used to being the odd one out at a shindig: She’s both the first woman and the youngest-ever Hungarian president.
It’s her thoughts on the gender pay gap, though, that ought to get attention at the famously male-dominated World Economic Forum: In an infamous video posted back in late 2020, Novák told the sisterhood: “Do not believe that women have to constantly compete with men. Do not believe that every waking moment of our lives must be spent with comparing ourselves to men, and that we should work in at least the same position, for at least the same pay they do.” That’s us told.
9. Cambodian Prime Minister Hun Manet
You may be surprised to see Hun Manet on this list: The new, Western-educated Cambodian prime minister has been touted in some circles as a potential modernizer and reformer.
But Hun Manet is less a breath of fresh air and a lot more continuation of the same stale story. Having inherited his position from his father, the longtime autocrat Hun Sen, Hun Manet has shown no signs of wanting to reform or modernize Cambodia. While some say it’s too early to tell where he’ll land (given his dad’s still on the scene, along with his Communist loyalists), the fact is: Many hallmarks of autocracy are still present in Cambodia. Repression of the opposition? Check. Dodgy “elections”? Check. Widespread graft and clientelism? Check and check.
10. Qatar Prime Minister Mohammed bin Abdulrahman bin Jassim al-Thani
How has a small kingdom of 2.6 million inhabitants in the Persian Gulf managed to play a starring role in so many explosive scandals?
Mohammed bin Abdulrahman bin Jassim al-Thani is the prime minister of Qatar, a country that’s played a starring role in many explosive scandals | Chris J. Ratcliffe/AFP via Getty Images
You’d think that sort of record would see Mohammed bin Abdulrahman bin Jassim al-Thani shunned by the world’s top brass. Nah! Just this month, U.S. Secretary of State Antony Blinken met with the Qatari leader and told him the U.S. was “deeply grateful for your ongoing leadership in this effort, for the tireless work which you undertook and that continues, to try to free the remaining hostages.”
See you on the slopes, Mohammed!
11. Polish President Andrzej Duda
When you compare Polish President Andrzej Duda to some of the others on this list, he doesn’t seem to measure up. He’s not a dictator running a violent petro-state, hasn’t invaded any neighbors or even wielded a chainsaw on stage.
But Duda is yesterday’s man. As the last one standing from Poland’s nationalist Law and Justice party that was swept out of office last year, Duda’s holding on for dear life to his own relevance, doing his best to act as a spoiler against the Donald Tusk-led government by wielding his veto powers and harboring convicted lawmakers. All of which is to say: When you catch up with President Duda at Davos, don’t assume he’s speaking for Poland.
12. Amin Nasser, CEO of Aramco
The Saudi Arabian state oil and gas company is Aramco — the world’s biggest energy firm — and Amin Nasser is its boss. If you read Aramco’s press releases, you’d be forgiven for assuming it is also the world’s biggest champion of the green energy transition. Spoiler alert: It’s far from it.
Exhibit A: Aramco is reportedly a top corporate polluter, with environment nongovernmental organization ClientEarth reporting that it accounts for more than 4 percent of the globe’s greenhouse gas emissions since 1965. Exhibit B: Bloomberg reported in 2021 that it understated its carbon footprint by as much as 50 percent.
Nasser, meanwhile, has criticized the idea that climate action should mean countries “either shut down or slow down big time” their fossil fuel production. Say that to Al Gore’s face!
This article has been updated to reflect the fact Shou Zi Chew is no longer going to attend the World Economic Forum.
Dionisios Sturis, Peter Snowdon, Suzanne Lynch and Paul de Villepin contributed reporting.
Chinese President Xi Jinping vowed to strengthen economic momentum and deliver on job creation, acknowledging some companies and citizens had a difficult 2023 in a rare admission of headwinds the country is facing.
While touting China’s achievements in his New Year’s message, the leader noted “some enterprises had a tough time” and “some people had difficulty finding jobs and meeting basic needs” in the past year.
“We will consolidate and strengthen the momentum of economic recovery, and work to achieve steady and long-term economic development,” Xi said in a televised address on Sunday.
The government’s goal is about “delivering a better life for the people — our children should be well taken care of and receive good education, our young people should have the opportunities to pursue their career and succeed, and our elderly people should have adequate access to medical services and elderly care,” he said.
Improving people’s well-being has been a key part of the social contact the Communist Party has relied on for its ruling. The new year sees China entering a pivotal period as policymakers try to boost growth, stabilize a crisis in the property market and prevent the world’s second-largest economy from sleepwalking into deflation.
Beijing is expected to target a growth goal of around 5% again in 2024, although achieving that will be harder due to a higher base.
Investor confidence has plummeted as concerns over Beijing’s opaque policymaking persisted and higher interest rates overseas spurred capital outflows. A recent crackdown on the gaming industry sparked a $80 billion meltdown, while foreign investors recorded their smallest-ever annual purchases of Chinese stocks.
Signs of weakness in the economy have increased recently with factory activity shrinking in December to the lowest level in six months, likely adding pressure on policymakers to act urgently to inject impetus to the economy.
Xi on Sunday touted Chinese “manufacturing prowess” with a list of projects including the domestically-built C919 passenger jet, a made-in-China cruise ship, space programs, maned submersibles, and electric cars.
China’s most-powerful leader since Mao Zedong continued to break Communist Party norms, making his fewest overseas trips — only four — in a non-pandemic year since taking power. He delayed a key economic meeting held every five years to chart the country’s reform.
Xi also abruptly ousted his defense minister, as well as top rocket force leaders, as turmoil rippled through the upper echelons of the nation’s military. Beijing also removed its foreign minister, without explanation, adding to the instability.
The new year also brings fresh geopolitical risks from elections in the US and Taiwan.
In his speech, Xi repeated that China will “surely be reunified,” alluding at Taiwan, which split with the mainland in 1949 at the end of a civil war but Beijing still claims as its own.
Taiwan’s hotly-contested election on Jan. 13 will decide how the island of more than 23 million people will respond to Beijing’s moves. The incumbent Democratic Progressive Party seeks to strengthen Taipei’s ties with Washington, while the opposition Kuomintang — an increasingly close second in the most recent polls — is Beijing’s preferred negotiating partner on the island.
“All Chinese on both sides of the Taiwan Strait should be bound by a common sense of purpose and share in the glory of the rejuvenation of the Chinese nation,” Xi said.
Tencent lost about $43.5 billion in market value on Friday after China surprised financial markets with a fresh set of rules aimed at curbing excessive gaming and spending.
The draft guidelines from China’s National Press and Publication Administration sank the Hong Kong-listed shares of Tencent, NetEase and Bilibili — among the largest online gaming-related counters in the world’s biggest online gaming market.
“The most recent regulatory move on the online gaming industry is the last thing the market was hoping to hear out of Beijing,” Brian Tycangco, an analyst at Stansberry Research told CNBC.
“While well intended, the move casts doubt on the viability of existing business models that mostly are built around incentive or rewards to attract users and boost loyalty,” he added.
Shenzhen-based Tencent, which owns WeChat and generated over a fifth of its third-quarter revenue from domestic online gaming, saw its shares tumble about 12.4% to close at HK$274, its lowest closing level since end-November 2022.
Tencent Holdings
NetEase, 80% of whose third-quarter revenue came from domestic online gaming, plunged 24.6% to close at HK$122. Friday’s losses wiped out about 115.1 billion Hong Kong dollars ($14.7 billion) off NetEase’s market capitalization.
Bilibili, a social media site that derived 17.1% of its total third-quarter net revenue from Chinese domestic gaming, saw its shares slide 9.7% to close at HK$80.30, its lowest since November 2022 — shaving about 2.4 billion Hong Kong dollars ($307 million) off its market capitalization.
The Hang Seng Index closed down 1.7% on Friday ahead of a four-day holiday weekend, while the China Enterprises Index of the largest offshore mainland blue-chip names listed in Hong Kong ended down 2.3%.
“I’m confident we’ll get more clarity on these new rules in the coming days and weeks. But investors don’t want to wait around for the dust to settle. Better coordination between industry and regulators will benefit everyone in the future,” Tycangco said.
New draft guidelines released by China’s top gaming regulator require owners of online games to abstain from providing or condoning high-value or expensive transactions in virtual entities whether by auction or speculative activity, among other things.
Daily login rewards will also be banned, while recharging limits must be imposed with pop-up warnings issued to users who display “irrational consumption behavior,” the National Press and Publication Administration said.
“These new measures do not fundamentally alter the online gaming business model and operations,” Vigo Zhang, vice-president of Tencent Games, told CNBC. “They clarify the authorities’ support for the online gaming industry, providing instructive guidance encouraging the innovation of high quality games.”
Just over a year ago, Tencent secured rights to five of the 45 foreign game licenses approved by the National Press and Publication Administration in the first batch of approvals since Beijing’s crackdown on the video-games sector that started in August 2021.
At the country’s annual legislative meetings in 2021, China President Xi Jinping blamed addiction to online gaming for rising myopia and the adverse psychological well-being of the country’s young.
Later that year, the National Press and Publication Administration proposed that children under 18 be should not allowed to play online games for more than three hours a week, limiting them to legal game time only between 8 p.m. and 9 p.m. on Fridays, weekends and public holidays starting in early September.
In August, the Cyberspace Administration of China proposed rules to limit the smartphone screen time of people under the age of 18 to a maximum of two hours per day.
— CNBC’s Lim Hui Jie and Arjun Kharpal contributed to this story.
Correction: An earlier version of this story misstated the milestone after the slide in Tencent’s share price.
Chinese President Xi Jinping said the country’s reunification with Taiwan was “inevitable” in his New Year’s address on Sunday, just weeks before the self-ruled island holds elections that could reshape relations between the two.
“All Chinese on both sides of the Taiwan Strait should be bound by a common sense of purpose and share in the glory of the rejuvenation of the Chinese nation,” the text adds.
Though Taiwan split from China amid civil war in 1949, Beijing considers the self-ruled island of 23 million its “sacred territory” and hasn’t ruled out the use of force in bringing the island under its control.
China has increasingly ramped up its rhetoric around Taiwan and increased military pressure on the island with regular drills in recent months, while lashing out at the U.S. for approving $300 million in military aid to Taiwan earlier this month. Washington is legally obliged to provide the island with the weapons it needs to defend itself.
Xi’s comments come ahead of Taiwan’s presidential and parliamentary elections on January 13.
The tight race pits Lai Ching-te from the ruling and more independence-leaning Democratic Party against Hou Yu-ih from the opposition Kuomintang, which has historically favored closer ties with China. Lai currently leads in the polls, but both candidates have so far attempted to emphasize peaceful relations with Beijing during the campaign.
Broadcom Chief Executive Hock Tan shelled out $40,000 to sit at Xi Jinping’s table for the Chinese leader’s recent dinner in San Francisco with the heads of American businesses. Tan had a lot more at stake—a $69 billion deal he was waiting on China to approve.
For months, Chinese regulators wouldn’t clear the U.S. chipmaker’s bid to buy enterprise software developer VMware, leading Broadcom to put off its date for completion of the deal—first announced in May 2022—three times. Beijing had held up previous mergers involving U.S. companies. Intel’s planned acquisition of Israeli firm Tower Semiconductor, for more than $5 billion, was scuttled in August after Chinese regulators failed to approve it.
This article is part of the Road to COP special report, presented by SQM.
Last week’s surprise deal between China and the United States may provide a boost to the climate talks in Dubai — but the two powers remain at odds on tough questions such as how quickly to shut down coal and who should provide climate aid to developing nations.
The world’s top two drivers of climate change are also divided by a thicket of disagreements on trade, security, human rights and economic competition.
The good news is that Washington and Beijing are talking to each other again and restarting some of their technical cooperation on climate issues, after a yearlong freeze. That may still not be enough to get nearly 200 nations to commit to far greater climate action at the talks that begin Nov. 30.
The two superpowers’ latest detente creates the right “mood music” for the summit, said Alden Meyer, a senior associate at climate think tank E3G. “But it still is not saying that the world’s two largest economies and two largest emitters are fully committed to the scale and pace of reductions that are needed.”
The deal, announced after a meeting this month between U.S. climate envoy John Kerry and his Chinese counterpart Xie Zhenhua, produced an agreement to commit to a series of actions to limit climate pollution. Those include accelerating the shift to renewable energy and widening the variety of heat-trapping gases they will address in their next round of climate targets.
U.S. President Joe Biden and Chinese leader Xi Jinping endorsed that type of cooperation after a meeting in California on Wednesday, saying they “welcomed” positive discussions on actions to reduce greenhouse gas emissions during this decade, as well as “common approaches” toward a successful climate summit. Biden said he would work with China to address climate finance in developing countries, a major source of friction for the U.S.
“Planet Earth is big enough for the two countries to succeed,” said Xi ahead of his bilateral with Biden.
But the deal leaves some big issues unaddressed, including specific measures for ending their reliance on fossil fuels, the main contributor to global warming. Andthe two countries are a long way from the days when a surprise U.S.-Chinese agreement to cooperate on climate change had the power to land a landmark global pact.
That puts the nations in a dramatically different place than in 2014, when Xi and then-President Barack Obama made a historic pledge to jointly cut their planet-warming pollution, paving the way for the landmark Paris Agreement to land in 2015.
Even a surprise joint deal between the two nations in 2021 failed to ease friction, with China emerging at the last minute to oppose language calling for a phase-out of coal power. The summit ended with a less ambitious “phase-down.”
House Speaker Nancy Pelosi speaks after receiving the Order of Propitious Clouds with Special Grand Cordon, Taiwan’s highest civilian honour | Handout/Getty Image
The two countries’ struggles to find comity have come at the worst possible moment — at a time when rapid action is crucial to preventing climate catastrophe. A growing number of factors has threatened to widen the U.S.-Chinese wedge further, including their competition for supremacy in the market for clean energy.
Two nations at odds
While the U.S. has contributed more greenhouse gases to the atmosphere than any other nation during the past 150 years, China is now the world’s largest climate polluter — though not on a per capita basis — and it will need to stop building new coal-fired power for the world to stand a chance of limiting rising temperatures.
The recent agreement hints at that possibility by stating that more renewables would enable reductions in the generation of oil, gas and coal, helping China peak its emissions ahead of its current targets.
The challenge will be bridging the countries’ diverging approaches to climate issues.
The Biden administration is urging a rapid end to coal-fired power, which is waning in the U.S., even as it permits more oil drilling and ramps up exports of natural gas — much of it destined for Asia.
At the same time, it wants the United States to claim a larger role in the clean energy manufacturing industry that China now dominates, and is seeking to loosen China’s stranglehold on supply chains for products such as solar panels, electric cars and the minerals that go into them. It’s also pressuring Beijing to contribute to U.N. climate funds, saying China’s historic status as a developing country no longer shields it from its responsibility to pay.
China sees the U.S. position as a direct challenge to its economic growth and energy security.
Beijing wants to protect the use of coal and defend developing countries’ access to fossil fuels. It has also backed emerging economies’ demands that rich countries pay more to help them deploy clean energy and adapt to the effects of a warmer world. China says it already helps developing countries through South-South cooperation and points to a clause in the 2015 Paris Agreement that says developed countries should lead on climate finance.
Hanging over the talks is also the prospect of a change of administration in the U.S., and continued efforts by Republicans to vilify Beijing and accuse the Biden administration of supporting Chinese companies through its climate policies and investments. And as China’s response to Pelosi’s trip underscored, climate cooperation remains hostage to other tensions in the two countries’ relationship, a dynamic likely to heighten in the coming year as both Taiwan and the U.S. hold presidential elections.
One challenge is that China doesn’t seem to see much to gain from offering more ambitious climate actions amid worsening relations with other countries, said Kevin Tu, a non-resident fellow at the Center on Global Energy Policy at Columbia University and an adjunct professor at the School of Environment at Beijing Normal University.
“In the past several years, China has voluntarily upgraded its climate ambitions a few times amid rising geopolitical tensions,” Tu said, pointing to its 2020 pledge to peak and then zero out its emissions. “So China does not necessarily have very strong incentive to further upgrade its climate ambition.”
The divide between the two nations has created a dilemma for some small island nations that often walk a fine line between negotiating alongside China at climate talks while pushing for more action to scale back fossil fuels.
The U.S. and China remain at odds on how quickly to shut down coal and who should provide climate aid to developing nations | Brendan Smialowski/AFP via Getty Images
“The U.S. is trying to drag everyone to talk about an immediate coal phase-out,” Ralph Regenvanu, climate minister for the Pacific island nation of Vanuatu, said during a recent call with reporters, calling the effort a “U.S.-versus-China thing.”
“But we also need to talk about no more oil or gas as well,” he added.
Operating on its own terms
The dynamic between China and the U.S. will either drag down or bolster the ambitions of countries updating their national climate pledges, a process that begins at the close of COP28. Nations are already woefully behind cuts needed to hit the goals they laid out in Paris.
China’s new 10-year targets will be crucial for meeting those marks, given that China accounts for close to 30 percent of global greenhouse gas emissions and that it plans to build dozens of coal-fired power plants in the coming years. The U.S., and many other countries, will be looking for greater commitments from China — whether that’s modifying what it means by phasing down coal or setting more stringent targets.
China has pledged to peak its carbon emissions before 2030 and zero them out before 2060,a decadelater than the United States has promised to reach net-zero. Beijing is unlikely to accelerate that timeline, in part because — analysts say — its philosophy is fundamentally different from that of the U.S.: underpromise and overdeliver.
Even without committing to more action, China’s massive investments in low-carbon energy installations — twice that of the United States — may inadvertently help the country achieve its peaking target early, some analysts say.
A complicated picture
If the Trump years drove China further from America, the global pandemic and resulting economic slowdown that started during his final year didn’t bring it closer. And the energy crunch stemming from Russia’s war with Ukraine cemented China’s drive for reliable energy to meet the rising needs of its 1.4 billion people. That created a coal boom.
Meanwhile, China heavily subsidized the expansion of wind, solar and electric vehicle production. Its clean energy supply chain dominance has lowered the global costs for those technologies but drawn scorn from the U.S. as it tries to rebuild its own domestic manufacturing base.
China has turned more combative in response. Rather than work with the U.S. to make joint announcements on climate action, Xi has made clear that China’s climate policy won’t be dictated by others. At G20 meetings, China has aligned with Saudi Arabia and Russia in opposing language aimed at phasing out fossil fuels.
“At the end of the day, it’s harder to make a claim that China needs the U.S. and it’s harder to make the claim that the U.S. can rely on China,” said Cory Combs, a senior analyst at policy consulting firm Trivium China.
Wealthy countries’ inability to deliver promised climate aid to vulnerable countries hasn’t helped. While China remains among the bloc of developing nations in calling for more action on climate finance, it also points to the investments it’s making in the Global South through its Belt and Road infrastructure initiative and bilateral aid.
A foreign diplomat who asked for anonymity to speak openly said China has resisted pressure to contribute money to a climate fund that would help developing countries rebuild after climate disasters and would likely push back against a focus on its continued build out of coal-fired power plants.
US climate envoy John Kerry sits next to China’s special climate envoy Xie Zhenhua | Fabrice Coffrini/AFP via Getty Images
“Anything that would signal that they would need to do more is something that gets blocked,” the person said.
China did release a plan earlier this month to cut emissions of the potent greenhouse methane, delivering on a promise it had made in a joint declaration with the U.S. at climate talks in 2021. But it has still not signed onto a global methane pledge led by the U.S. and the European Union.
All that amounts to a complicated picture for the U.S.-Chinese relationship and its broader impact on global climate outcomes.
“The U.S.-China talks will help stabilize the politics when countries meet in the UAE, but critical issues such as a fossil fuel phase-out still require much [further] political efforts,” said Li Shuo, incoming director of the China climate hub at the Asia Society Policy Institute.
“It’s very much about setting a floor,” and the talks in Dubai still need to build out from there, Shuo added.
He argues in a recent paper that China will subscribe to targets it sees as achievable and will continue toside with developing countries on climate finance. Chinese government officials are cautious about what they’re willing to commit to internationally, which sometimes serves as a disincentive for them to be more ambitious, he said.
The calculation is likely to be different for Biden’s team, who “want a headline that the world agrees to push China,” said David Waskow, who leads the World Resources Institute’s international climate initiative.
Not impossible
The power of engagement can’t be completely written off, and in the past it has proven to have a positive effect on the U.S.-China relationship.
“[Climate] sort of was a positive pillar in the relationship,” said Todd Stern, Obama’s former chief climate negotiator. “And it came to be a thing where when the two sides have come to get together, it was like, ‘What can we get done on climate?’”
Engagement with Chinaat the state and local level and among academics and research institutes has potential — in large part because it’s less political, said Joanna Lewis, a professor at Georgetown University who closely tracks China’s climate change approach.
There could also be opportunities to separate climate from broader bilateral tensions.
“I do feel like there’s that willingness to say, ‘We recognize our roles, we recognize our ability to have that catalytic effect on the international community’s actions,’” said Nate Hultman, director of the University of Maryland’s Center for Global Sustainability and a former senior adviser to Kerry. “It doesn’t solve all the world’s issues going into the COP, but it gives a really strong boost to international discussions around what we know we need to do.”
Sara Schonhardt and Zack Colman reported, and Phelim Kine contributed reporting, from Washington, D.C.
This article is part of the Road to COP special report, presented by SQM.The article is produced with full editorial independence by POLITICO reporters and editors. Learn more about editorial content presented by outside advertisers.
Sam Altman, Chief Executive Officer of OpenAI, and Mira Murati, Chief Technology Officer of OpenAI, speak during The Wall Street Journal’s WSJ Tech Live Conference in Laguna Beach, California on October 17, 2023.
Patrick T. Fallon | Afp | Getty Images
OpenAI’s board of directors said Friday that Sam Altman will step down as CEO and will be replaced on an interim basis by technology chief Mira Murati.
The company said it conducted “a deliberative review process” and “concluded that he was not consistently candid in his communications with the board, hindering its ability to exercise its responsibilities.”
“The board no longer has confidence in his ability to continue leading OpenAI,” the statement said.
OpenAI’s board includes chief scientist Ilya Sutskever and independent directors such as Quora CEO Adam D’Angelo, technology entrepreneur Tasha McCauley, and Helen Toner of the Georgetown Center for Security and Emerging Technology. OpenAI says the board of its 501(c)(3) is the “overall governing body for all OpenAI activities.”
The board also said that Greg Brockman, OpenAI’s president, “will be stepping down as chairman of the board and will remain in his role at the company, reporting to the CEO.”
Sam Altman acknowledged that he was leaving OpenAI in a post on X on Friday, but did not mention any accusations by the firm’s board that he failed to be candid during unspecified reviews. He said he loved working at the company and that he would talk more about “what’s next later.”
Regarding the appointment of Murati, OpenAI said, “As the leader of the company’s research, product, and safety functions, Mira is exceptionally qualified to step into the role of interim CEO. We have the utmost confidence in her ability to lead OpenAI during this transition period.”
OpenAI, which has raised billions of dollars from Microsoft and ranked first on CNBC’s Disruptor 50 list this year, jumped into the mainstream in late 2022 after releasing its AI chatbot ChatGPT to the public. The service went viral by allowing users to convert simple text into creative conversation and has pushed big tech companies such as Alphabet and Meta to step up their investments in generative AI.
Microsoft CEO Satya Nadella (R) speaks as OpenAI CEO Sam Altman (L) looks on during the OpenAI DevDay event on November 06, 2023 in San Francisco, California. Altman delivered the keynote address at the first ever Open AI DevDay conference.
Justin Sullivan | Getty Images
Microsoft shares slipped after the announcement, closing the day down 1.7% at $369.84.
A Microsoft spokesperson said in a statement that the company has “a long-term partnership with OpenAI and Microsoft remains committed to Mira and their team as we bring this next era of AI to our customers.”
In a post on X, Microsoft CEO Satya Nadella commented about his company’s “long-term agreement with OpenAI,” explaining that it would “remain committed to our partnership, and to Mira and the team.” Nadella did not address Altman’s departure.
Brockman also shared a post on X that included the message he sent to his former OpenAI colleagues, informing them that he “quit” after he learned about “today’s news.”
Later in the evening, Brockman said in an X post that both he and Altman were “shocked and saddened by what the board did today.”
Sutskever instigated a virtual meeting with Altman that the rest of the OpenAI board attended except Brockman, the now-former OpenAI president claimed in the X post. It was during this meeting that Sutskever allegedly fired Altman, telling him “that the news was going out very soon,” Brockman wrote.
Less than half-an-hour later, Brockman claimed to have received a text message from Sutskever, in which the chief scientist summoned for another virtual meeting. At this meeting, Brockman said he learned of Altman’s firing and that he was being removed from OpenAI’s board, but was assured to be “vital to the company and would retain his role.”
“As far as we know, the management team was made aware of this shortly after, other than Mira who found out the night prior,” Brockman said in the post, which was quickly followed by a separate message from Altman.
Altman said in an X post that “today was a weird experience in many ways. but one unexpected one is that it has been sorta like reading your own eulogy while you’re still alive.”
“if i start going off, the openai board should go after me for the full value of my shares,” Altman said in another X post.
OpenAI debuted in 2015 as a nonprofit and employed Sutskever as research director and Brockman as chief technology officer. The firm’s original investors included several prominent Silicon Valley luminaries like Altman, LinkedIn co-founder Reid Hoffman and Tesla CEO Elon Musk, who reportedly committed $1 billion to the project.
Before taking over as CEO, Altman, 38, was president of startup accelerator Y Combinator and gained prominence in Silicon Valley as an early-stage investor. Earlier in his career, he started the social networking company Loopt.
As OpenAI’s popularity grew this year alongside ChatGPT, so too did Altman’s profile. He became an ambassador of sorts, representing the ballooning AI industry across the globe.
In September, Indonesia awarded Altman the so-called “Golden Visa,” providing him with 10 years worth of various travel accommodations and perks intended to help the country gain more foreign investors.
Altman visited several Asia-Pacific countries over the summer including Singapore, India, China, South Korea and Japan, meeting with government leaders and officials and giving public speeches on the rise of AI and the need for regulations.
The technologist testified before the U.S. Senate in May, calling on lawmakers to regulate AI, citing the technology’s potential to have a negative impact on the job market, the information ecosystem, and other societal and economic concerns.
“I think if this technology goes wrong, it can go quite wrong,” Altman said at the time. “And we want to be vocal about that. We want to work with the government to prevent that from happening.”
In a prelude to his Senate testimony, Altman also spoke at a dinner with roughly 60 lawmakers, who were reportedly wowed by his speech and demonstrations.
Open AI’s CEO Sam Altman testifies at an oversight hearing by the Senate Judiciaryâs Subcommittee on Privacy, Technology, and the Law to examine A.I., focusing on rules for artificial intelligence in Washington, DC on May 16th, 2023.
Nathan Posner | Anadolu Agency | Getty Images
“It’s not easy to keep members of Congress rapt for close to two hours,” said Rep. Ted Lieu, D-Calif., vice chair of the House Democratic Caucus, who co-hosted the dinner with GOP Conference Vice Chair Mike Johnson, R-La., now House speaker. “So Sam Altman was very informative and provided a lot of information.”
More recently, Altman spoke this week at the Asia-Pacific Economic Cooperation conference in San Francisco, along with various technology executives and world leaders including U.S. President Joe Biden and Chinese President Xi Jinping.
OpenAI held its first developer conference in early November, underscoring the startup’s rising popularity in the technology industry. Microsoft CEO Satya Nadella made a surprise guest appearance during the event, joining Altman on stage to discuss the startup’s AI technologies and its partnership with Microsoft.
Altman didn’t immediately respond to a request for more information.
One day after President Biden met with Chinese President Xi Jinping in Northern California, Secretary of State Antony Blinken told “CBS News Evening News” anchor and managing editor Norah O’Donnell in an interview Wednesday that China represents “one of the most consequential relationships” the U.S. has with any nation. He also addressed President Biden’s remarks in which Mr. Biden again referred to Xi as a “dictator.”
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
Google CEO Sundar Pichai speaks at a panel at the CEO Summit of the Americas hosted by the U.S. Chamber of Commerce on June 09, 2022 in Los Angeles, California.
Anna Moneymaker | Getty Images
Google CEO Sundar Pichai said artificial intelligence is like climate change in that it will proliferate worldwide, and that people across the globe share a responsibility to create guardrails.
At the Asia-Pacific Economic Cooperation (APEC) CEO summit in San Francisco on Thursday, Pichai was asked by Bloomberg’s Emily Chang how to get to a global consensus on “smart AI regulation.”
Pichai said AI “will proliferate” and that “AI advances will get out to all the countries and so it’s naturally the kind of technology that — I don’t think there’s any unilateral safety to be had.”
Should AI could go wrong in one country, he said, it could impact other countries, making it difficult to regulate locally.
“In some ways, it’s like climate change and the planet,” Pichai said. “We all share a planet. I think that’s true for AI.” That’s why “you have to start building the frameworks globally,” he added.
Pichai said countries have a shared responsibility to build global frameworks — something he’s warned about in recent months. He said he sees some signs of progress for discussions, including at the G7 Summit in Japan earlier this year. There was also yesterday’s agreement between President Joe Biden and Chinese President Xi Jinping, who vowed to start a dialogue around the topic of AI.
SAN FRANCISCO—Speaking at a solo press conference after a carefully orchestrated diplomatic summit with the Chinese leader, President Joe Biden told reporters Wednesday that he still thought Xi Jinping was a dictator and a slut. “Look, there’s nothing that happened in this summit that changed my belief that Xi rules his country with an iron fist and has also been around the block with everyone—like, seriously, everyone,” said Biden, denouncing the general secretary of the Chinese Communist Party for his authoritarian measures toward his own citizens and claiming he heard a rumor that Xi once had to have his stomach pumped because he had swallowed over a gallon of semen. “This is not a good guy we’re talking about here, people. Also, he’s not even that hot. That’s the thing. He’s just this fugly little skank. Plus, what he’s doing to the Uyghur people is abhorrent. Almost as abhorrent as Xi blowing any and all takers.” At press time, Beijing had immediately condemned the statement, remarking that the Chinese president’s body count was, like, two at most.
Xi comes to America: This week, at an estate outside of San Francisco, President Joe Biden met with Chinese President Xi Jinping as part of the Asia-Pacific Economic Cooperation (APEC) summit. They talked about stemming fentanyl production, keeping lines of communication open between the two countries’ militaries, and Taiwan’s future, among other things. But little was agreed to.
“There was a time when summits with Chinese leaders resulted in agreements on containing North Korea and keeping Iran from getting a nuclear weapon, on climate goals and economic coordination to avoid financial crises and joint efforts in counterterrorism. Those days are over,” wrote Katie Rogers and David E. Sanger for The New York Times. Now, “there is little to no prospect of changed behavior.”
Afterward, Biden called Xi a dictator again, a move that has earned the Chinese Communist Party leader’s chagrin in the past. “He’s a dictator in the sense that he’s a guy who runs a country that is a communist country,” said Biden.
The whole thing seemed pretty photo-oppy and of limited use, though the two leaders “agreed to steps that could help curb the flow of Chinese chemicals used in the U.S. production of fentanyl,” perPolitico.
China-watchers criticized the talks for ignoring the giant nuclear elephant in the room. “When it comes to the U.S. nuclear posture in East Asia—deploying and expanding America’s nuclear arsenal as a deterrent to Chinese hostilities—Biden is not only following Trump’s lead but in some ways taking an even more aggressive stance than his predecessor did,” wrote Michael Hirsh for Politico. “Many experts fear Washington and Beijing are headed into a tit-for-tat spiral of nuclear confrontation that could come to resemble the brinkmanship of the Cold War.”
And yet, the San Francisco talks had pretty much nothing on that, as far as we know. There was some talk of reining in the use of artificial intelligence in nuke deployment, but little beyond that; it was essentially one big “we’ll circle back on that later” meeting.
Potemkin San Francisco: Meanwhile, the long-failing city of San Francisco was seemingly cleaned up overnight—or at least parts of it were—seemingly to prepare for Xi’s arrival.
California Gov. Gavin Newsom claimed that, well actually, this cleanup process had long been underway, but also that of course the city would clean up in advance of world leaders coming over for dinner. “Obviously, any time you put on an event, by definition…you know, you have people over to your house, you’re going to clean up the house,” said Newsom. “You’re going to make sure the kids make their beds, you know. Take the socks, you know, put them in the drawer, in the hamper.”
What Newsom misses is that taxpayers deserve for their dollars to be put to good use all the time, not just when foreign leaders visit.
Besides, it’s also worth noting that “the city hardly ‘fixed’ its second homelessness problem. It just shifted encampments and vagrant behavior away from the downtown,” wroteReason‘s Christian Britschgi. There’s a difference between legitimately solving a problem and simply hiding it out of sight; Newsom seems to have mostly chosen the latter.
Don’t all MRI rooms house AK-47s? Few details have been released about the Israel Defense Forces (IDF) raid of Al Shifa hospital in Gaza, which is believed to be above a Hamas command center. “In a video taken at the hospital, a military spokesman, Lt. Col. Jonathan Conricus, displayed caches of guns, ammunition, protective vests and Hamas military uniforms, some of which, he said, had been hidden behind M.R.I. machines and others in nearby storage units,” reported The New YorkTimes.
Indeed, IDF video provided to the press shows grab bags with AK-47s, ammo, and grenades hidden behind an MRI machine at Al Shifa, per Conricus. But many observers have said that Israeli claims that Al Shifa was housing large Hamas operations have not materialized. “Really what we haven’t seen at this point is anything like the claims from the Israeli military that this is used as a sort of sophisticated command and control center by Hamas,” reported BBC correspondent Yolande Knell.
It’s a little too early to tell. More will likely emerge in the coming days.
Scenes from New York: Earlier this week, hundreds of kids and their parents marched to Democratic Sen. Chuck Schumer’s house demanding that he take action to prevent Israel from continuing to attack Gaza. I am not a huge fan of kid political activism, generally speaking, especially varieties that seem to emanate from parental preference and not the interest of the child, though this is perhaps something even worse: Ever-younger kids becoming obnoxious, shouty activists. (They are all well within their rights to do so, of course.)
QUICK HITS
The Federal Aviation Administration (FAA) is allowing SpaceX to proceed with its second test launch for the Starship rocket after the first exploded. (More on the FAA’s role in space exploration here.)
Come for the Mike Johnson/monkeypox headline, stay for the absolutely bonkers nugget that the World Health Organization changed the virus’s name to “mpox” since “the term monkeypox could be seen as stigmatizing and racist,” reportedPolitico.
I too want to blame my pesky marijuana habit on long COVID.
Not sure Sonic Youth’s Thurston Moore knows very much about Argentine politics:
Sonic Youth will always be Youth Against Fascism. This Goo/Pettibon mashup is a joke about right wing Milei’s hair. Essentially its about voting for Massa to remain & stopping the pro-police state Milei from taking power. Vote for humanitarianism ✌️❤️All love to Argentina pic.twitter.com/YgADfcYPdo
Watch this cool new documentary from Reason‘s Zach Weissmueller on how bitcoin mining powers a bathhouse in Brooklyn.
This thread, from Russ Roberts, makes a lot of sense:
I don’t like filming people tearing down posters of the abducted, ID’ing them and then getting them fired. Or killing their job prospects. I find the act of destroying the posters offensive and often despicable especially when done with delight. But there may be non-despicable 1/
President Joe Biden didn’t flinch Wednesday when asked if he would still refer to Chinese leader Xi Jinping as a “dictator.” (Watch the video below.)
“Well, look, he is!” the president told reporters after he met with Xi in Woodside, California.
“I mean, he’s a dictator in the sense that he is a guy who runs a country that is a communist country based on a form of government totally different than ours.”
The honest assessment may have undermined the diplomatic vibe of their face-to-face chat and certainly angered Chinese officials.
“Such a remark is extremely wrong and is irresponsible political manipulation,” Chinese Foreign Ministry spokesperson Mao Ning said, according to The Associated Press. “It needs to be pointed out that there have always been people with ill intentions who try to sow discord and undermine the China-U.S. relations.”
The wire service had written that the four hours of talks between the two men is “seen as putting rocky relations back on course.” And Biden said, “We made progress.” However, the AP emphasized that none of the nations’ geopolitical conflicts were resolved.
He said Xi’s reaction to growing tension after the Air Force shot down a suspected Chinese spy balloon over the East Coast was “a great embarrassment for dictators.”
That also prompted an aggressive response from Mao, who said Biden’s words “go totally against facts and seriously violate diplomatic protocol, and severely infringe on China’s political dignity.”
Mao added, “It is a blatant political provocation. China expresses strong dissatisfaction and opposition. The U.S. remarks are extremely absurd and irresponsible.”
President Biden and Chinese President Xi Jinping met Wednesday outside San Francisco for the first U.S.-China summit in over a year. Biden and Xi agreed to crack down on illegal fentanyl production and restart military communication amid rising tensions. CBS News senior White House correspondent Weijia Jiang reports.
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
U.S. President Joe Biden waves as he walks with Chinese President Xi Jinping at Filoli estate on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit, in Woodside, California, U.S., November 15, 2023. REUTERS/Kevin Lamarque
Kevin Lamarque | Reuters
BEIJING — The U.S. and China have to choose between being adversaries or partners, Chinese President Xi Jinping told American business executives late Wednesday in San Francisco.
His remarks contrast with the Biden administration’s approach of pursuing strategic competition with Beijing — restricting exports of advanced U.S. tech to China, while looking for areas of cooperation.
“I have always had one question on my mind: How to steer the giant ship of China-U.S. relations clear of hidden rocks and shoals, navigate it through storms and waves without getting disoriented, losing speed or even having a collision?” Xi said, according to an English-language readout of his Mandarin-language speech.
China is ready to be a partner and friend of the United States.
Xi Jinping
President of China
“In this respect, the number one question for us is: are we adversaries, or partners? This is the fundamental and overarching issue,” he said.
“The logic is quite simple. If one sees the other side as a primary competitor, the most consequential geopolitical challenge and a pacing threat, it will only lead to misinformed policy making, misguided actions, and unwanted results,” Xi said.
“China is ready to be a partner and friend of the United States,” he said. “The fundamental principles that we follow in handling China-U.S. relations are mutual respect, peaceful coexistence and win-win cooperation.”
Nearly 400 business leaders — including Apple CEO Tim Cook and Qualcomm CEO Cristiano Amon — government officials, U.S. citizens and academics attended the dinner, hosted by the U.S.-China Business Council and the National Committee on U.S.-China Relations.
U.S Secretary of Commerce Gina Raimondo delivered remarks ahead of Xi’s address.
In a roughly 30-minute speech, Xi said China-led international initiatives such as the Belt and Road are open to U.S. participation, while Beijing is ready to join U.S.-proposed multilateral cooperation initiatives.
“No matter how the global landscape evolves, the historical trend of peaceful coexistence between China and the United States will not change,” Xi said.
Regarding earlier conversations with Biden, Xi said “we agreed to make the cooperation list longer and the pie of cooperation bigger.”
Xi said China is ready to invite 50,000 young Americans to study in the Asian country over the next five years.
He also said China would send its giant pandas to the San Diego Zoo. He did not specify a time.
Last week, the remaining three pandas in the U.S. on loan from Beijing returned to China due to an expiring contract. China has lent pandas to countries around the world as a diplomatic tool.
China never bets against the United States, and never interferes in its internal affairs.
Xi Jinping
President of China
Xi’s speech was titled “Galvanizing Our Peoples into a Strong Force For the Cause of China-U.S. Friendship.”
“It is wrong to view China, which is committed to peaceful development, as a threat and thus play a zero-sum game against it,” Xi said. “China never bets against the United States, and never interferes in its internal affairs.”
“China has no intention to challenge the United States or to unseat it. Instead, we will be glad to see a confident, open, ever-growing and prosperous United States,” he said. “Likewise, the United States should not bet against China, or interfere in China’s internal affairs. It should instead welcome a peaceful, stable and prosperous China.”
— CNBC’s Christina Wilkie and Eamon Javers contributed to this report.
Correction: The summary and key points have been updated to accurately reflect that Xi’s dinner withU.S. business executives took place on Wednesday night in San Francisco.