In San Francisco, Chinese President Xi woos US business investment but welcome mat not enough, say analysts
- Structural tensions continue to cloud the Sino-US economic relationship as companies look to diversify supply chains to other Asian countries
- Many foreign investors remain wary given Beijing’s emphasis on national security, raids on foreign companies and strict data laws
Chinese President Xi Jinping is courting big American businesses in China in San Francisco this week, but analysts and investors say structural tensions continue to cloud the Sino-US economic relationship as companies look to diversify supply chains to other Asian countries.
03:12
Xi Jinping, Joe Biden hold talks on sidelines of Apec summit to ease strained US-China ties
“The more difficulties there are, the greater the need for us to forge a closer bond between our peoples and open our hearts to each other,” Xi said at the dinner.
Xi’s visit to the US was preceded by China announcing the largest purchase of American soybeans in months. Reports surfaced before Xi’s visit that Beijing might also place orders for new Boeing jets for the first time in more than four years, but the deal did not materialise this week.
While Xi hoped the steak dinner would allay concerns from American business elites over a tightened regulatory environment in China and high tensions between the US and China, Mary Lovely, Peterson Institute for International Economics senior fellow, said words would not be enough.
“I think that they have to see real change,” Lovely said. “Xi was charming, he said all the right things to them, but they need to see it on the ground and I think businesses are very sceptical right now.”
