China's Xi to meet foreign business leaders amid economic nervousness | Economic and commercial news

Taipei, Taiwan Chinese President Xi Jinping is set to meet U.S. business leaders in Beijing, media reported, as he tries to attract foreign investment to China after a difficult few years for the world's second-largest economy.

Wednesday's meeting is expected to include Apple CEO Tim Cook, Blackstone executive Stephen A Schwarzman and HSBC's Noel Quinn, the Wall Street Journal reported, citing people familiar with the list.

Many world leaders are already in Beijing this week for the China Development Forum which took place on Sunday and Monday.

The forum's guest list includes World Bank President Ajay Banga, International Monetary Fund Managing Director Kristalina Georgieva, and representatives from more than 100 multinational companies.

Although business leaders have been able to meet with many of China's top leaders in recent days, the invitation to meet with Xi signals a concerted effort by Beijing to combat negative perceptions about the current business environment.

It's possible that investors and executives will voice grievances at the meeting, and it's possible that lobbying will have some impact, but I don't think that's the real purpose of this meeting, Chris told Al Jazeera Beddor, deputy director of China research at Gavekal Dragonomics. .

This is mainly Xi sending a message. The message is that the Chinese government is listening to the concerns of global businesses and investors and still wants their presence in the country, at a time when global businesses are very wary of China.

Foreign direct investment in China fell 8% last year as companies scaled back operations and sought to reduce business risks amid ongoing geopolitical tensions and a tighter regulatory environment.

Tightening espionage and state secrets laws have also left some companies questioning whether they are truly welcome, while the COVID-19 pandemic has drawn attention to their overreliance on Chinese supply chains.

Some foreign companies have nevertheless emphasized their desire to double their investments.

Cook told Chinese media on Sunday that he hopes to increase Apple's investment in China, where the company's flagship iPhone has lost ground to Huawei's local models like the Mate 60 Pro Plus.

“I think China is really opening up and I'm so happy to be here,” Cook said on the sidelines of the China Development Forum.

Others, including IMF head Georgieva, are more nervous about China's future.

In a speech at the China Development Forum, Georgieva told policymakers that more market-friendly reforms were needed to help China's economy rebound from the pandemic.

Despite growing 5% last year, China's economy is struggling with deflation and a prolonged real estate crisis.

China is about to find itself at a crossroads, either building on policies that worked in the past or updating its policies for a new era of high-quality growth, Georgieva said , suggesting the reforms could add $3.5 trillion to the economy over the period. the next 15 years.

Shifting to consumption-led growth, however, may be easier said than done in an economy marked by weakening domestic demand and flagging business confidence.

Chinese officials have long relied on infrastructure megaprojects to boost gross domestic product, which has necessitated a shift in mindset by policymakers toward consumption-led growth .

Despite these concerns, China set its GDP target for this year at 5% and pledged to continue supporting strategic sectors, among other goals presented to participants at the China Development Forum.

This year's China Development Forum got off to a less rocky start than last year, which was overshadowed by the fallout from Beijing's tough pandemic restrictions and controversy over a Chinese spy balloon in American airspace.

Tensions between the United States and China are a bit more stable this year, so the political pressure on American participants has eased somewhat, Beddor said.

There just weren't many foreign visitors to China in March 2023. So it's no surprise that attendance has increased this year, as foreign travel of all kinds to the country is a bit more normal than usual. last year, he said.