**Beijing**: In a meeting with prominent business leaders, President Xi Jinping urged for collaboration to preserve global supply chains amidst economic instability and looming tariffs from the U.S. This reflects China’s ongoing efforts to attract foreign investment and rebuild investor confidence amid declining foreign direct investment.
During a meeting with foreign business leaders at the Great Hall of the People in Beijing on 28 March 2025, Chinese President Xi Jinping called for cooperation in preserving global industry and supply chains. This appeal comes as China grapples with apprehensions surrounding its economic stability, particularly in light of anticipated tariffs from the United States under President Donald Trump.
The session, attended by around 40 executives, primarily from the pharmaceuticals sector, lasted just over 90 minutes and included notable figures such as AstraZeneca CEO Pascal Soriot, FedEx CEO Raj Subramaniam, and Toyota President Akio Toyoda. Xi emphasised the necessity for collaborative efforts to ensure the stability of global supply systems, which he described as crucial for the healthy development of the world economy. “We need to work together to maintain the stability of global industry and supply chains,” said Xi. He urged the executives to maintain a broad perspective and warned against being swayed by transient distractions that could disrupt market stability.
Frank Bournois, Vice President and Dean of the China Europe International Business School in Shanghai, interpreted the meeting as a significant example of business diplomacy, stating, “This meeting is a big illustration of business diplomacy… diplomacy being led by companies that are not just representing themselves, but also their sectors.” This encounter marks another chapter in the ongoing dialogue between China’s leadership and international businesses, a trend that appears to have gained momentum following a noted decline in foreign direct investment (FDI) in China, which plummeted by 27.1% year-on-year in 2024.
Xi also highlighted the contributions of foreign enterprises to China’s economy, noting that they account for one-third of the country’s imports and exports and create over 30 million jobs. He remarked, “In recent years, foreign investment in China has also been interfered with by geopolitical factors… I often say that blowing out other people’s lights does not make you brighter.”
The context of this meeting also aligns with a heightened state of tension in Sino-American trade relations, as President Trump announced new tariffs set to take effect on 2 April, targeting nations with trade barriers on U.S. products, potentially including China. Following the imposition of 20% tariffs on Chinese exports earlier this month, China responded with additional tariffs on American agricultural products.
The growing frequency of such meetings between foreign business leaders and top Chinese officials reflects China’s urgent effort to rebuild investor confidence following the substantial decline in FDI. Bournois indicated that while discussions are vital, tangible actions following these dialogues will be crucial in reversing investment trends. “If it is followed by deeds and measures, only then we will see FDI trends change,” he stated.
This meeting illustrates the ongoing complexities of international business relations in the current geopolitical climate and the efforts made by China to secure foreign investment amidst an ever-evolving economic landscape.
Source: Noah Wire Services
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