China's Xi Meets Foreign Business Leaders Amid Economic Jitters
Taipei, Taiwan – As part of efforts to attract foreign investment back to China after a challenging few years for the world’s second-largest economy, Chinese President Xi Jinping has met with American business leaders and academics at Beijing’s Great Hall of the People.
In attendance were Evan Greenberg, the chief executive of the US insurance company Chubb, as well as Stephen Orlins, the president of the National Committee on US-China Relations, and Craig Allen, the president of the US-China Business Council.
Like many Chinese state functions, the event was highly choreographed, with footage showing attendees arranged in a square formation offset by elaborate floral installations.
Xi last met with US executives in San Francisco following the APEC summit there in November.
The meeting is an opportunity for Beijing to reinforce ties with US companies amid tensions with Washington and signal that their investment is welcome.
Many of the world’s top executives are already in Beijing this week for the China Development Forum, which took place on Sunday and Monday.
Members include, World Bank President Ajay Banga, International Monetary Fund (IMF) Managing Director Kristalina Georgieva and representatives of more than 100 multinational firms.
In recent times, business leaders have had numerous meetings with senior Chinese officials. However, the invitation to meet with Xi Jinping indicates a deliberate move by Beijing to tackle the negative perceptions surrounding the present business climate.
According to Chris Beddor, the deputy China research director at Gavekal Dragonomics, "It’s possible that investors and executives will air some grievances at the meeting and it’s possible that lobbying might make some impact, but I don’t think that’s what this meeting is really about."
“This is primarily about Xi sending a message. The message is that the Chinese government is attuned to the concerns of global companies and investors, and still wants their presence in the country, at a time when global businesses are very wary of China.”
Others, including the IMF’s Georgieva, are more jittery over China’s future.
Addressing policymakers at the China Development Forum, Georgieva emphasized the necessity for additional pro-market reforms to facilitate China's economic recovery from the pandemic.
Despite achieving a 5 percent growth last year, China's economy is grappling with deflation and an enduring real estate crisis.
“China is poised to face a fork in the road – rely on the policies that have worked in the past, or update its policies for a new era of high-quality growth,” Georgieva said, while suggesting that reforms could add $3.5 trillion to the economy over the next 15 years.
Shifting to consumption-focused growth, however, may be easier said than done in an economy marked by weakened domestic demand and sagging business confidence.
Chinese officials have long relied on mega infrastructure projects to boost gross domestic product (GDP), necessitating a mind shift among policymakers to move towards consumption-led growth.
Despite these concerns, China has established a GDP target of 5 percent for this year and has committed to maintaining support for strategic sectors, among other objectives communicated to attendees of the China Development Forum.
This year's China Development Forum commenced with fewer challenges compared to last year's event, which was marred by the repercussions of Beijing's stringent pandemic restrictions and controversy surrounding a Chinese spy balloon in US airspace.
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