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 engaged with representatives from American business, strategic, and academic communities in an attempt to bolster confidence in the face of a slowdown in foreign investment, which hit a 30-year low last year.
As China grapples with political tensions with the US, a property market decline, and deflation, investors are feeling uncertain about the future. They have noted a lack of consistency as China simultaneously pursues development and security, leaving them unsure of the risks and rewards of doing business in the country. The structural economic slowdown has prompted executives to reassess their operations in China.
Prior to the pandemic, President Xi frequently interacted with executives at events like the Boao Forum for Asia, often dubbed China’s Davos. However, he is not expected to attend this year’s forum, which began on Tuesday in Hainan. Despite the challenges, American CEOs and executives have been invited to meet with President Xi at various events, showing the importance of maintaining dialogue between the two countries amidst growing tensions.
