Xi seeks to woo U.S. companies amid strained ties
Chinese President Xi Jinping is expected to dine with top U.S. business leaders in San Francisco on Wednesday, as he tries to court American companies and counter his country’s recent struggles to attract foreign investment. The dinner, hosted by the U.S.-China Business Council (USBC) and the National Committee on U.S.-China Relations (NCUSCR), will follow a day of talks between Xi and U.S. President Joe Biden, aimed at stabilizing the fraught relations between the world’s two largest economies.
For American businesses, it will be a chance to hear directly from China’s leader as they search for ways to navigate China’s economic slowdown, a U.S. push to “de-risk” some American supply chains away from China, and uncertainty caused by expanding Chinese security rules. “The purpose of the dinner is to foster better communication,” one source close to the organizers told Reuters, declining to say who would speak while confirming representatives from both the Chinese and U.S. governments would share the podium.
But the event, yet to be formally announced by the hosts, also presents uneasy optics. According to event notifications seen by Reuters, some U.S. firms will pay tens of thousands of dollars to hear a “Chinese state leader” from a government that Washington has accused of genocide against Muslim Uyghurs. China has vigorously denied the accusations.
Xi faces challenges in wooing U.S. investors
Xi, who is on his first visit to the U.S. in more than six years, will be eager to convince U.S. industry that China is still open for business after recording its first quarterly deficit in foreign direct investment. Even as China this year cast off COVID-19 pandemic controls that effectively shut its borders, it has grown more suspicious of engagement with Western companies, in line with Xi’s emphasis on national security.
Xi has overseen a crackdown on U.S. consultancy and due-diligence firms, a further blow to investor confidence. He has also tightened the grip on China’s tech sector, imposing new regulations and fines on giants like Alibaba and Tencent, and blocking the IPO of Ant Group, the world’s largest fintech company. These moves have rattled the markets and raised concerns about the future of innovation and competition in China.
Moreover, Xi faces a more assertive U.S. administration that has sought to challenge China’s rise and influence in the region and beyond. Biden has maintained a tough stance on trade, human rights, and security issues, while rallying allies and partners to counter China’s growing clout. He has also launched a review of U.S. supply chains, with an aim to reduce reliance on China for critical goods and technologies.
Xi hopes to find common ground with U.S. business community
Despite the tensions and uncertainties, Xi hopes to find some common ground with the U.S. business community, which has long been a key driver of bilateral relations and trade. China remains a huge and lucrative market for many U.S. companies, especially in sectors like consumer goods, entertainment, and health care. Some U.S. firms, such as Tesla, Starbucks, and Nike, have seen strong growth in China, even amid the pandemic and the trade war.
Xi may also seek to reassure U.S. businesses that China is committed to further opening up and reforming its economy, as well as addressing some of their longstanding grievances, such as intellectual property protection, market access, and fair competition. He may also highlight China’s efforts to combat climate change, a shared priority with the Biden administration, and to support the global recovery from the pandemic.
The dinner, which will cost up to $40,000 for a table of eight, according to one notice for the event, is routine by standards for past Chinese presidential visits. But it will also be a rare opportunity for dialogue and engagement between the two sides, amid a deepening rivalry and mistrust that threatens to undermine the stability and prosperity of the world.
