Chinese President Xi meets with US CEOs to boost confidence in world’s second largest economy

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Hong Kong/Taipei
CNN
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Chinese leader Xi Jinping met with more than a dozen U.S. CEOs and academics on Wednesday, as the Chinese government revives efforts to bring back foreign investors and mend strained relations with the United States.

Foreign direct investment in China has declined in recent months as a combination of slowing growth, a regulatory crackdown, onerous national security laws and questions about the country’s long-term growth prospects have weakened confidence in the world’s second-largest economy. is fluctuating and slumping.

The group included Cristiano Amon and Raj Subramaniam of Qualcomm (QCOM). Steven Schwartzman of FedEx (FDX) and Blackstone Group (BX).

The meeting at Beijing’s Great Hall of the People came after the conclusion of a major government forum that has long invited world business leaders to dialogue with Chinese government officials.

This week, about 100 global CEOs, as well as heads of international organizations such as the International Monetary Fund and the World Bank, were in the Chinese capital to participate in the annual China Development Forum. More than 30 of them are American executives, according to Chinese state media.

Facing its biggest economic challenge in decades, the Chinese government is seeking to restore confidence and stabilize foreign trade and investment. Since last year, it has rolled out a series of measures to attract foreign investment and expand market access for high-tech sectors, including a 24-point action plan announced by the Cabinet earlier this month.

But global investors remain wary of China’s growing scrutiny of Western companies and a structural slowdown.

Foreign direct investment (FDI) into the country during the first two months of 2024 has shrunk by nearly 20% compared to a year ago, highlighting the weakness in confidence among global executives.

The decline followed an 8% decline in 2023, according to the Commerce Department.

Direct investment debt, another indicator of FDI, fell by 82% in 2023, according to figures released by the State Administration of Foreign Exchange. It was the lowest in 30 years.

A survey released last month by the American Chamber of Commerce in China found that 57% of American companies are not confident that China will further open its market to foreign companies.

China has set its economic growth target for this year at around 5%, the same as last year. But market watchers say this goal is unlikely given the lack of large-scale economic stimulus from the central government to directly address China’s weak confidence and reluctance to spend among Chinese consumers. He claims to be “ambitious.”

The world’s second-largest economy is beset by myriad problems. These include a long-term slump in real estate, deflation, debt, population decline, and a shift in economic policy toward ideological goals that destabilize the private sector and scare away foreign investors.