Dozens of foreign CEOs are gathering in Beijing this week for the annual China Development Forum (CDF).
Against the backdrop of heightened global uncertainty, Beijing is sending its message to the world: As the US pursues protectionist “America First” policies, the world’s second-largest economy is open for business.
The Chinese government has, on several occasions, iterated its determination to open up the Chinese economy. Its latest government work report, released in March, maps clear policies for high-standard opening up and optimizing the business environment for foreign investors.
Chinese Premier Li Qiang, again, urged for opening up at the CDF. “In today’s increasingly fragmented world with rising instability and uncertainty, it is more necessary for countries to open up their markets and enterprises… to resist risks and challenges,” Li said.
But without going beyond business deals, “opening up” risks becoming an empty promise.
With interactions with foreign business leaders at the Diaoyutai State Guesthouse this week, Chinese policymakers intend to tell the world that in contrast to “high walls,” the country is taking concrete measures to attract foreign investments.
In his meeting with heads of Apple, Pfizer, Mastercard, Cargill and others on Sunday (March 23), China’s Vice Premier He Lifeng reaffirmed the country’s business potential and sincerity in welcoming more investment from multinational companies.
China’s goodwill is reflected in its endeavors to improve the business environment. The Chinese Ministry of Commerce said in March that it has addressed more than 500 issues for foreign-funded companies via roundtable meetings.
So far, China has allowed 13 foreign-invested companies to access value-added telecommunications services. Additionally, more than 40 foreign-funded biotechnology projects have been launched and three new hospitals entirely owned by foreign entities have won approval to operate.
Nearly 90% of businesses operating in China are “very satisfied” or “relatively satisfied” with the country’s overall business environment last year, according to a survey released by the China Council for the Promotion of International Trade in January.
The surveyed companies gave China’s business environment a rating of 4.37 out of 5, marking an improvement of 2.1 percentage points compared to 2023.
While some American politicians, citing national security concerns, have been working to drive multinational corporations and enterprises away from China, global investors are interestingly acting against their government’s will.
Despite Washington’s tariff pressure, a remarkable number of American business leaders, including Apple’s Tim Cook, Pfizer’s Albert Bourla, and FedEx’s Rajesh Subramaniam, have signed up for the two-day event in Beijing – an apparent demonstration of their enthusiasm for the Chinese market.
“This is a market where the consumer moves incredibly fast. The consumer is the most digitally engaged consumer that we have. And as we meet the demands of this consumer with innovation, we are better able to serve the rest of the world with those innovations,” Joanne Crevoiserat, CEO of US-based luxury goods company Tapestry, said in an interview with CGTN.
Investor preferences are reflected in stock market valuations. While the US stock market saw a catastrophic downturn in March – losing a staggering $5.28 trillion in value in just three weeks, the MSCI China Index marked its best start to the year – surging 19% as of March 9, as reported by investment bank Goldman Sachs.
The contrast in investor sentiment is not surprising. To make America “great” again, Washington is pushing for economic decoupling through sanctions, tariffs and other trade barriers.
The Donald Trump administration, under an “America First” doctrine, is moving further down a path to protectionism. In contrast, China has shown its enthusiasm for free trade and foreign investment.
As the old Chinese saying goes, “When the winds of change blow, some build walls while others build windmills.” Global investors are witnessing that the world’s two biggest economies are making different choices between walls and windmills.
And this, in turn, is influencing their choices in putting funds in China and withdrawing them from the US.
Jianxi Liu is a Beijing-based analyst of political and international relations and contributor to Chinese news organizations including Global Times, CGTN and others.
Jianxu, if you were as bright as you pretend to be, you would know China built their boarder security not to keep people out but to keep people in!
We build wall to protect our land and not imprison our people but again what do you know about freedom?!
Also not to question your intelligence but since proven windmills to generate electricity is far more harmful than emission they save.
To begin all the birds it chops, waste during manufacturing and waste for installation and amount of concrete pour and then repair and maintenance leads to decommissioning with no use for the post use material going to landfill.
So before attacking America, maybe do your research rather than pushing propaganda!
That’s why y’all voted for Trump. You know China cause you’ve been to China? Just like he knows US cause he’s been to the US. China builds wall for national security. Millions of Chinese tourists leave China every year. They all return to China. People in the US are leaving in droves. It’s a land of homelessness and drug use. China is cornering all the future industries cause they work hard and you don’t. You want protection cause you don’t want to
work as hard. You want to go to the beach.