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Hong Kong (CNN) — Chinese leader Xi Jinping held court with dozens of the world’s top executives on Friday, as he sought to bolster foreign investment during an escalating trade war with the United States.
The meeting, in which Xi reassured global investors about the country’s economic prospects to arrest a slide in foreign investment, comes just days before US President Donald Trump is due to announce a mega batch of tariffs targeting America’s many trading partners.
Touting China as a “fertile ground for foreign enterprises to invest and thrive,” Xi made his pitch to over 40 executives including FedEx CEO Raj Subramaniam and Qualcomm chief Cristiano Amon to expand their investments in the country.
“China has always been, is and will inevitably continue to be an ideal, safe and promising destination for foreign investment,” he said, according to an official readout provided by the state-run Xinhua news agency.
Xi reiterated a pledge to improve market access, ensure equal treatment for foreign businesses and strengthen communication with foreign investors. Foreign companies contribute one-third to China’s imports and exports and one-seventh of its tax revenue, while creating over 30 million jobs, he added.
Xi called on multinational corporations, which he said wield “significant international influence” to “speak up with reason, take pragmatic action, and resist any attempts to turn back the clock on progress.”
He seemingly took a swipe at Trump by urging foreign businesses to “not blindly follow actions that disrupt the safety and stability of the global industrial supply chain.”
“Blocking others’ paths will ultimately only obstruct your own,” he said. “Decoupling and breaking supply chains harm everyone and lead nowhere.”
Several executives — Subramaniam, Daimler AG’s Ola Källenius, Sanofi CEO Paul Hudson and HSBC CEO Noel Quinn — spoke during the meeting, according to state media. Other executives present included Bridgewater Associates’ founder Ray Dalio, BMW chairman Oliver Zipse and Toyota chairperson Akio Toyoda, according to a live stream of the event.
Many foreign executives have stayed on in Beijing following last weekend’s China Development Forum, where Premier Li Qiang asked them to “resist protectionism” in a world of “growing instability and uncertainty.”
The forum, which was attended by representatives of 86 multinational companies this year, is an annual event frequented by international business leaders.
“We have prepared for possible unexpected shocks, which, of course, mainly come from external sources,” Li said on Sunday.
In a meeting with Chinese Commerce Minister Wang Wentao on Monday, Apple CEO Tim Cook pledged to increase investment in China’s supply chain, research and development, and social welfare sectors, according to the Commerce Ministry.
Wang criticized unilateral US tariffs for disrupting business operations and adding uncertainty to the global economy, while he stressed that China was willing to work with the US to create a more stable policy environment for businesses.
Reviving growth
The Chinese economy continues to suffer from myriad challenges, including the sputtering property sector, weak consumer spending and deflationary pressure. Still, Beijing has set an ambitious goal for the country’s economic growth at 5% this year, despite admitting to difficulties ahead.
In the first two months of the year, China recorded a 20% plunge in foreign direct investment (FDI), according to the Commerce Ministry. The weak start to the year came after a steep tumble of 27.1% in total annual FDI last year to 826.3 billion yuan ($113.4 billion), the lowest figure since 2016.
Geopolitical tension and the tightening of national security-related regulations have accelerated the exodus of foreign business and capital from China. A prolonged economic downturn has prompted the country’s leadership to proactively court investment, both from foreign investors and privately owned Chinese businesses.
In a high-profile meeting last month, Xi sat down with the country’s top business executives, including Alibaba founder Jack Ma, Huawei founder Ren Zhengfei, BYD CEO Wang Chuanfu, and Tencent CEO Pony Ma. “Now is the perfect time for private enterprises and entrepreneurs to thrive,” he told them.
China’s ambitious economic growth targets are being threatened by a renewed trade conflict with Trump. Since January, the US president has already imposed an additional 20% tariff on all Chinese imports, on top of existing levies on hundreds of billions of dollars’ worth of goods.
In retaliation, China has imposed duties on selected US imports up to 15%, including certain agricultural and energy products, and announced new export controls on raw materials.
On Monday, Li signed an order strengthening the country’s anti-sanctions law, according to state media. It said countermeasures could be taken against foreign nations that “contain or suppress” China or impose discriminatory measures on its citizens or entities.
US tariffs could escalate further in the coming weeks, with the White House expected to announce reciprocal tariffs on multiple countries early next week. The move is part of a broader push to revive domestic manufacturing and address what Trump sees as unfair trade practices.
But Trump has repeatedly suggested that he hopes to strike a deal with China. He indicated last week that America’s top trade official and Chinese counterparts could hold talks this week.
The-CNN-Wire
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