China's Xi to meet with BMW, Mercedes, Qualcomm CEOs, sources say

SHANGHAI (Reuters) - The global heads of German automakers BMW and Mercedes, as well as chip giant Qualcomm are among foreign business leaders due to meet with Chinese President Xi Jinping this week, two sources said on Thursday.

The meeting in Beijing planned for Friday comes as Chinese authorities seek to bolster ties with foreign companies amid a drop in investment and in the face of U.S. tariffs targeting the world's second-biggest economy.

The meeting follows on from last weekend's China Development Forum (CDF), a flagship business event that this year saw Premier Li Qiang urge countries to open their markets and combat "rising instability and uncertainty".

Li also pledged that China would deliver more active macroeconomic policies.

Executives from Apple, Pfizer, Mastercard, Cargill and others met with Chinese commerce ministry officials over the course of CDF.

The sources, who have direct knowledge of the planned meeting between Xi and the Mercedes, BMW and Qualcomm executives, asked not to be named as they are not authorized to speak with media. They gave no details regarding the expected substance of the talks.

The companies did not immediately reply to Reuters' requests for comment. The Chinese foreign ministry also did not immediately respond to a request for comment.

The frequency of meetings between foreign executives and high-level Chinese authorities has picked up over the past month after official data showed foreign direct investment (FDI) plummeted 27.1% year-on-year in local currency terms in 2024.

That marked the biggest drop in FDI since the 2008 global financial crisis.

Global firms have been moving manufacturing away from China in an effort to diversify their supply chains and derisk their operations among escalating geopolitical tensions.

China's slowing economy has also played a role in the decline in investment, while a sweeping crackdown on consultancy and due diligence firms has rattled some foreign executives.

Beijing is also eager to mend relations with global business leaders to help fend off disruptions sparked by tariffs imposed by U.S. President Donald Trump.

China remains one of the biggest markets for German automakers, including BMW, Mercedes and Volkswagen, in spite of market share leakage to Tesla and Chinese rivals including BYD and Xiaomi.

It may become even more important after Trump's announcement of a new 25% tariff on imported autos to the U.S. due to go into effect on April 3.

German automakers have recently ramped up efforts to seek technology partnerships with Chinese companies to enhance their product competitiveness there.

(Reporting by Shanghai newsroom; Editing by Joe Bavier)