Chinese premier urges foreign CEOs to help counter ‘rising instability’

Beijing — Chinese Premier Li Qiang urged countries to open up their markets to combat “rising instability and uncertainty” at a business forum in Beijing on Sunday, as China braces for further US tariff headwinds.

“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 told dozens of foreign CEOs and visiting US Republican senator Steve Daines at the China Development Forum, state media reported.

Foreign CEOs including Tim Cook of Apple, Cristiano Amon of Qualcomm, Pascal Soriot of AstraZeneca and Amin Nasser of Saudi Aramco are attending the China Development Forum on Sunday and Monday, and some are expected to meet President Xi Jinping on Friday, sources previously said.

Beijing is keen to attract foreign investment at a time of heightened geopolitical tensions, as policymakers try to boost domestic consumption to offset fresh US tariff headwinds.

“We will focus on combining policy intensification with stimulating market forces,” Li said according to a Xinhua report, without elaborating on specific stimulus measures.

“We will implement more active and promising macroeconomic policies, further intensify countercyclical adjustments, and introduce new incremental policies when necessary.”

Li added that he hoped entrepreneurs will be “staunch defenders and promoters of globalisation... (and) resist unilateralism and protectionism”.

There were fewer American CEOs attending the summit than last year due to heightened geopolitical tensions between Beijing and Washington, according to one source. A closed-door meeting between Li and foreign business executives will not take place for the second year in a row, according to the agenda.

Senator Daines of Montana, a strong supporter of US President Donald Trump, met with vice-premier He Lifeng in Beijing on Saturday and with Li on Sunday, in the first visit to China by a US politician since Trump took office in January.

Trump previously announced a wave of fresh “reciprocal” tariffs on April 2 targeting countries with trade barriers on US products, which could potentially include China.

The Trump administration is set to conclude a review of Beijing’s compliance with the “phase one” US-China trade deal struck in his first term by April 1.

Trump imposed 20% tariffs on Chinese exports this month, prompting China to retaliate with additional duties on American agricultural products.

In recent weeks, Chinese commerce ministry officials have met with at least a dozen executives from foreign firms including Brazilian mining giant Vale, Airbus, PepsiCo, Procter & Gamble, Honeywell and Swire.

These meetings came as official data showed foreign direct investment last year plummeted the most since the 2008 global financial crisis.

China’s State Council unveiled an action plan to boost foreign investment last week, which promised measures such as further opening up in China’s telecommunications and healthcare sectors and smoothing cross-border data transfers.

As China concluded its annual parliamentary session this month, the government vowed to “vigorously boost” consumption in an economy facing sluggish consumer demand and a protracted property crisis.

However, analysts have said policymakers need to launch greater stimulus efforts if Beijing is caught up in a spiralling trade war with Washington this year.

Reuters