China's Xi makes strong push for greater foreign investment as economy
continues to lag
[March 28, 2025]
BEIJING (AP) — In an address to major global business leaders, Chinese
President Xi Jinping urged foreign investors to have faith in China’s
business prospects, the latest move to revive the world’s second-largest
economy that has been dragged down by a property bust and a loss of
momentum.
“China has always been and will certainly be an ideal, safe and
promising investment destination for foreign investors,” Xi told
executives, including Akio Toyoda, chairman of Toyota, Lee Jae-yong,
chairman of Samsung Electronics and Stephen Allen Schwarzman, CEO of
investment firm Blackstone.
China remains a major exporter of products to countries around the world
and boasts a domestic market of 1.4 billion people. However, massive
overbuilding in the property sector has tied up trillions of dollars in
capital, sapping business and consumer confidence and depriving the
economy of its past vitality, while a tariff war unleashed by the U.S.
is compounding those problems.
Private businesses, which provide a large share of growth and jobs in
the country’s state-dominated economy, have borne much of the burden
after years of regulatory crackdowns have shaken the confidence of
entrepreneurs and other investors.
China's unprecedentedly tough response to the COVID-19 outbreak also
shut down business for much of three years and some sectors of the
economy have yet to recover, particularly where global supply chains are
involved.
Yet, Xi, considered something a sceptic when it comes to inviting in
overseas businesses, said foreign investors could have confidence that
“the door of opening up will only open wider and wider. The policy of
utilizing foreign investment has not changed and will not change,” he
said.
“China contains huge investment and consumption potential,” he added.
China has set an economic growth target of about 5% for this year, the
same as last year and a level that analysts said would be difficult to
achieve.
[to top of second column] |
Chinese President Xi Jinping attends an event at the Great Hall of
the People in Beijing on Friday, March 28, 2025. (AP Photo/Ng Han
Guan)
 The government has said it would
attempt to stimulate the roughly $20 trillion economy by borrowing
more money for a slew of initiatives, such as giving 300 billion
yuan ($41.3 billion) in rebates to consumers who trade in old cars
and appliances for new ones. But much of the borrowing will go to
supporting the housing market and local governments weighed down by
debt.
What is clear is that a trade war with the United States has left
the outlook for the coming months uncertain. Trump has raised
tariffs on imports from China twice since taking office in January,
leaving them at 20% across-the-board. China has shown no sign of
backing down, retaliating with tariffs on U.S. goods.
Xi did not mention the tariffs directly, but appeared to be
referring to the importance of stable trade terms by saying:
“Blowing out other people’s lights will not make your own lights
brighter. Blocking other people’s paths will eventually block your
own paths.”
For now, however, China is seeking to portray itself as “an ideal,
safe and promising investment destination for foreign investors,” he
said.
“Going with China is going with opportunities. Believing in China is
believing in tomorrow. Investing in China is investing in the
future,” the president, who has made himself leader for life and
also heads the ruling Communist Party, said.
Others in attendance Friday included Amin H. Nasser, president of
Saudi Aramco; Sherard Louis Cowper-Coles, the chair of China-Britain
Business Council; Oliver Zipse, BMW CEO and Ray Dalio, chief
investment officer of hedge fund Bridgewater Associates.
All contents © copyright 2025 Associated Press. All rights reserved |
