China Invites American Business Executives to Boost Confidence Amidst Bilateral Tensions

Amidst increasing bilateral tensions over trade restrictions and accusations of cyberattacks, President Xi Jinping recently met with a group of American business executives in Beijing. The Chinese leader convened with representatives from American business, strategic, and academic communities in an effort to boost confidence amid a slowdown in foreign investment, which hit a 30-year low last year.

Investors have expressed concerns about fluctuating sentiments as China pursues its development and security objectives. Warm words from authorities have been followed by actions such as investigations into consultancy firms, the expansion of anti-spy laws, and restrictions on data access. A structural economic slowdown has caused executives to reassess the risks and rewards of operating in China.

President Xi used to hold more frequent gatherings with executives prior to the pandemic, including at events like the annual Boao Forum for Asia, often referred to as China’s Davos. However, he is not expected to attend this year’s forum, which began on Tuesday in Hainan. This meeting with American business executives signals China’s desire to address concerns and strengthen ties amidst ongoing tensions.