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China's Xi warns foreign executives of 'severe' trade headwinds / Photo: © AFP
NYSE - LSE
China's Xi warns foreign executives of 'severe' trade headwinds
Chinese leader Xi Jinping on Friday warned of "severe challenges" to global trade, vowing to open the country's door "wider and wider" to foreign firms as Beijing faces down a mounting trade war with the United States.
Meeting executives including hedge fund boss Ray Dalio and Samsung Electronics chief Lee Jae-yong in Beijing's ornate Great Hall of the People, Xi warned that "unilateralism and protectionism" were on the rise.
"Multilateralism is the inevitable choice for addressing the difficulties and challenges facing the world, and economic globalisation is an unstoppable historical trend," Xi said.
His comments were a veiled criticism of Trump's recently imposed tariffs, which are dampening the prospects this year for Chinese exports after they soared to record highs last year.
Beijing has sought to woo foreign businesses as those global trade headwinds threaten its already-shaky economic growth.
It has also positioned itself as a staunch defender of the multilateral trading system as the mercurial resident of the White House rocks the international order.
During Friday's meeting, Xi called for upholding World Trade Organisation rules, while promising China would continue to "advance trade and investment liberalisation".
"All parties should work together to uphold the global economic order," he said.
He vowed that "foreign enterprises in China can develop their advantages and capabilities and gain an advantage in global competition".
Exports have historically represented a key driver of growth in the manufacturing powerhouse, though increasing trade and geopolitical tensions are threatening that.
Foreign enterprises in China have long complained of an unfair business environment, with IP theft, a lack of regulatory transparency and an uneven playing field with local firms among the laundry list of issues.
A sweeping counterespionage law imposed in 2023 has also done little to improve sentiment.
This week, US due diligence firm Mintz Group said that China had released five local employees detained more than two years ago during a crackdown on foreign consultancies with multinational links.
Beijing later said the company was under investigation for suspected "illegal operations", but did not provide details.
Other US firms targeted in the 2023 crackdown included Bain & Company and Capvision.
S. Soerensen--BTZ
