Chinese President Xi Jinping convened a meeting with more than 40 top global executives on Friday, as part of China’s strategic initiative to boost domestic manufacturing and combat perceived unfair trade practices by the United States. This convening comes at a pivotal time. U.S. President Donald Trump announced new tariffs last week that might quickly deepen today’s trade war.
“China has always been, is and will inevitably continue to be an ideal, safe and promising destination for foreign investment,” he assured the executives.
The Chinese government has announced a very ambitious target for economic growth, of only 5% this year. Actually meeting the target is getting more and more difficult, thanks in part to rerouted trade tensions with the U.S. Washington has imposed an additional 20% tariff on all Chinese imports, compounding existing levies on hundreds of billions of dollars’ worth of goods. As a reprisal, China has already placed tariffs on targeted U.S. imports averaging 15%, ranging from agricultural exports to energy products.
Xi’s meeting with the business leaders was not only a bid to fortify economic collaboration but a message of resilience against external pressures. His statement, again, stressed the need for strong international supply chains.
“Decoupling and breaking supply chains harm everyone and lead nowhere,” Xi stated, highlighting the interconnectedness of global economies.
Foreign companies are an essential ingredient in China’s success. They make up one third of the nation’s imports and exports, one seventh of all tax revenue collected by the country, and they create more than 30 million jobs. The Chinese economy is under a lot of stress. It faces persistent challenges from a stagnant property market, collapsed consumption and deflation.
Of note, Chinese Commerce Minister Wang Wentao just met with Apple CEO Tim Cook earlier this week. This meeting, with a headline-grabbing location and participants, served to reinforce foreign investors’ confidence. In their meetings, Cook promised to boost investment in China’s supply chain, research and development, and social welfare sectors. Such commitments are important at this moment as China contends with an economic downturn.
The timing of Xi’s engagement with global business leaders is particularly significant, as it precedes President Trump’s anticipated announcement of new tariffs targeting various trading partners. These developments highlight the uncertain international trade landscape and its increasing threat to China’s domestic growth goal.
“Blocking others’ paths will ultimately only obstruct your own,” Xi warned, advocating for collaborative progress rather than isolationist policies.