Q: Various European economists have expressed concern about the coming presidency of Donald Trump, specifically the expectation of inflation from his planned economic policies. They worry that the policies may worsen the debt structure of European countries, or even cause a global trade war. What’s your opinion on the influences that Trump’s coming term may bring for European countries?

A: Assuming Trump follows through with what he has said, the likely outcome is a more fractured Europe. Trump’s ideas find resonance with the European Far Right and ultra-nationalists, so some segments in Europe will welcome his economic policies and will in fact want to use his example to support their own domestic political agenda. This is likely to cause further angst and pushback from European liberals and globalists. The end result will be a further divided and weakened Europe that may not be able to provide effective international leadership. And this is why China must continue to play an important global role, in showing the world that China will not retreat even when others waver, that it will do more to further advance globalization and make it better. China can be the shining torch for globalization and growth even as others choose to switch off theirs.

Q: The Davos forum’s official website points out that the theme “Responsive and Responsible Leadership” entails a deeper commitment to inclusive development and equitable growth, both nationally and globally. It also involves working rapidly to close generational divides by exercising shared stewardship of those systems that are critical to our prosperity. What’s your expectation of China’s future role and contribution on these aspects?

A: China will continue to play a responsible role in supporting and sustaining the existing global system—it has done so in the past, and it will do so in the future. But it will also want to improve on this order, to make it more inclusive and equitable, and enable emerging economies like itself to have greater stewardship over an international system that is now ironically causing problems for the original shapers of the system. It is precisely because the extant system is not adequately reformed that today we see a growing popular discontent that threatens to overturn the entire system altogether.