By Michael Martina
In San Francisco, top business leaders are anticipated to partake in a dinner with Chinese President Xi Jinping in a bid to attract American companies and offset China’s recent economic challenges in enticing foreign investment.
The dinner, taking place as part of the Asia-Pacific Economic Cooperation (APEC) forum, will follow discussions between Xi and U.S. President Joe Biden, focused on stabilizing the complex relationship between the two largest economies in the world.
For American businesses, the event will provide an opportunity to receive direct insights from China’s leader regarding strategies to navigate China’s economic slowdown, the U.S. push to “de-risk” American supply chains away from China, and the uncertainties created by expanding Chinese security regulations.
According to a source involved in the planning, the primary purpose of the dinner is to improve communication, without disclosing the exact speakers, but confirming participation from both the Chinese and U.S. governments.
However, event notifications indicate that some U.S. firms will pay significant amounts to hear from a representative of the Chinese government, despite Washington’s accusations of human rights abuses. China has vehemently denied these allegations.
Both USCBC and NCUSCR declined to comment on the dinner. The Chinese embassy in Washington did not respond to requests for comment.
Xi, who is expected to deliver a speech, aims to convey to U.S. industry that China remains open for business, despite facing its first quarterly deficit in foreign direct investment.
Despite China easing COVID-19 controls, it has become more cautious about engagement with Western companies, aligning with its focus on national security.
Business and trade have traditionally played a significant role in U.S.-China relations, but growing concerns about a potential new cold war between the two superpowers have put companies in the spotlight.
While Reuters was unable to obtain a list of attendees, some executives expressed reservations about the event’s relevance to their operations in China and the potential political risks.
According to Jeff Moon, a former U.S. trade official, the dinner is unlikely to have a substantial impact on relations and business decisions.
Some U.S. lawmakers have criticized American businesses for their participation, citing concerns about alleged forced labor in China.
Although human rights issues persist, Biden is making efforts to improve relations with China, recognizing the importance of high-level communication to prevent conflicts.
Janet Yellen, the Treasury Secretary, emphasized the U.S.’s intention to reduce dependence on China in some areas while rejecting the idea of full economic decoupling.
The dinner serves as Xi’s “reassurance tour,” with business leaders seeking his guidance on how foreign firms will be treated in China.
(Additional reporting by David Brunnstrom and Stephen Nellis, editing by Michelle Nichols and Lincoln Feast.)
