Xi Jinping Courts Global Business Leaders Ahead of Potential US Tariff Escalation

In a high-profile meeting in Beijing, Chinese President Xi Jinping sought to reassure international business leaders about China’s economic stability, just days before the United States is expected to unveil a new round of tariffs targeting a range of countries, including China.

The meeting with over 40 executives from global companies was an attempt to bolster foreign investment as the country grapples with a challenging economic environment exacerbated by geopolitical tensions and the ongoing trade war with the United States.

Xi’s comments were made during an event at the Great Hall of the People on Friday, where he described China as a “fertile ground for foreign enterprises” and a “safe and promising destination” for investment. Among the prominent executives attending were the CEOs of major companies such as FedEx, Qualcomm, and Daimler AG. Xi emphasized the vital role that foreign businesses play in China’s economy, noting their significant contributions to imports, exports, tax revenue, and job creation.

In his speech, Xi reassured business leaders that China was committed to improving market access and ensuring equal treatment for foreign firms. He also emphasized the importance of maintaining global industrial and supply chain stability in the face of rising protectionism. His remarks, while diplomatic, appeared to be a subtle critique of US trade policies under President Donald Trump, urging businesses to resist actions that could disrupt global supply chains.

“Blocking others’ paths will ultimately only obstruct your own,” he stated.

The backdrop of Xi’s charm offensive is the deteriorating state of foreign direct investment (FDI) in China, which has seen a significant decline in recent months. In the first two months of 2025, FDI dropped by 20%, continuing a trend from 2024, when it fell by over 27%. These declines are linked to both economic challenges within China and increasing geopolitical tensions, particularly with the United States.

Xi’s outreach comes at a time when the US is poised to introduce fresh tariffs, possibly further escalating the trade war. President Trump has already implemented a 20% tariff on all Chinese imports, with more tariffs expected. In response, China has retaliated with duties on select US goods, and the situation remains volatile, with both sides bracing for more economic fallout.

Despite these challenges, Xi expressed confidence in China’s ability to attract foreign investment. His administration has made several efforts to strengthen relations with global business leaders, including hosting meetings with top executives at the China Development Forum earlier in the week. Furthermore, Chinese Premier Li Qiang has emphasized that the country is prepared for any unexpected economic shocks.

In contrast to the growing protectionist sentiment in the US, China continues to promote itself as a stable, open market for international trade. As foreign investment begins to wane, China is increasingly turning to its domestic businesses and global partners to help revitalize its economy and meet ambitious growth targets. While Xi’s reassurances may provide some comfort to international businesses, the future remains uncertain as tensions between China and the US continue to rise.

With input from the Financial Times, CNN, Reuters, and Bloomberg.