China's Xi Jinping courts global investors amid escalating trade tensions

In a strategic move to reinforce foreign confidence in China’s economy, President Xi Jinping met with top executives from global corporations on Friday. The gathering, held at the Great Hall of the People in Beijing, aimed to assure investors of China’s commitment to maintaining an open market despite escalating trade tensions with the United States.

Xi’s meeting comes just days before U.S. President Donald Trump is expected to unveil a sweeping set of tariffs targeting major trading partners, a move that could significantly impact global commerce. In his address to over 40 executives, including FedEx CEO Raj Subramaniam and Qualcomm chief Cristiano Amon, Xi emphasized China’s role as a “fertile ground for foreign enterprises to invest and thrive.”

“China has always been, is, and will continue to be an ideal, safe, and promising destination for foreign investment,” Xi stated, according to state-run Xinhua News Agency. He reaffirmed Beijing’s commitment to improving market access, ensuring equal treatment for foreign companies, and fostering stronger communication between international investors and the Chinese government.

Xi also urged multinational corporations to resist trade policies that could undermine global supply chains. In what appeared to be a direct critique of Trump’s approach, he warned against “blindly following actions that disrupt the safety and stability of the global industrial supply chain,” adding that “blocking others’ paths will ultimately only obstruct your own.”

Several business leaders, including Daimler AG’s Ola Källenius, Sanofi CEO Paul Hudson, and HSBC CEO Noel Quinn, addressed the gathering. The event followed the annual China Development Forum, which also hosted high-profile executives, such as Apple CEO Tim Cook. During a separate meeting on Monday, Cook pledged to expand Apple’s investment in China’s supply chain, research and development, and social welfare sectors.

A Push to Revitalize Growth Amid Economic Challenges

China’s economy continues to grapple with several hurdles, including a sluggish property market, weak consumer spending, and deflationary pressure. Despite these challenges, Beijing has set an ambitious target of 5% GDP growth for the year. However, foreign direct investment (FDI) in China has been on a sharp decline. According to the Commerce Ministry, FDI fell by 20% in the first two months of 2025, following a 27.1% drop in 2024—the lowest since 2016.

Amid rising geopolitical tensions and increasing scrutiny from Western governments, many multinational corporations have either reduced their footprint in China or opted for alternative markets. In response, Beijing has ramped up efforts to attract both foreign and private Chinese investments. Last month, Xi convened a high-profile meeting with Chinese business leaders, including Alibaba’s Jack Ma, Huawei’s Ren Zhengfei, and Tencent’s Pony Ma, urging them to contribute to the nation’s economic revitalization.

Trade War Escalation Looms

Complicating China’s efforts to stabilize its economy is a renewed trade conflict with the U.S. Since January, Trump has imposed an additional 20% tariff on all Chinese imports, adding to existing levies on hundreds of billions of dollars’ worth of goods. In retaliation, China has imposed duties of up to 15% on selected U.S. imports, including agricultural and energy products, and has tightened export controls on critical raw materials.

Beijing has also introduced legislative measures to counter foreign economic pressures. On Monday, Premier Li Qiang signed an order strengthening China’s anti-sanctions law, allowing countermeasures against nations that impose discriminatory restrictions on Chinese businesses and citizens.

As tensions mount, the U.S. is expected to announce additional reciprocal tariffs targeting multiple countries next week. The measures are part of Trump’s broader strategy to boost domestic manufacturing and address what he views as unfair trade practices.

Despite the hardline rhetoric, Trump has suggested that he remains open to negotiations with China. Last week, he hinted that trade representatives from both nations could meet soon to discuss potential resolutions.

The coming weeks will prove crucial in determining whether these economic tensions can be defused or whether the global trade landscape will face another period of volatility. As China pushes to restore investor confidence and the U.S. moves forward with protectionist policies, the stakes for businesses and economies worldwide remain high.