China’s president projects friendly tone but analysts say increasing scrutiny has rattled foreign groups
At a San Francisco hotel on Wednesday evening, Chinese President Xi Jinping delivered a message to US business that got a standing ovation: China is a big market and a friend.
Crowding into the Hyatt Regency to meet the Chinese leader were Elon Musk of Tesla, Tim Cook of Apple and Albert Bourla of Pfizer, all keen on selling more electric cars, iPhones and pharmaceuticals in the world’s second-biggest economy.
After a day spent in long-awaited talks with US President Joe Biden, Xi told an audience of about 300 people: “China is both a super-large economy and a super-large market . . . modernisation for 1.4bn Chinese is a huge opportunity that China provides to the world.”
“The world needs China and the US to work together for a better future,” he added. “China is ready to be a partner and friend of the US.”
The warm feelings appeared mutual. “If you go through the list of the top 20 US companies in China, they were all there,” said one San Francisco tech titan who attended the event but did not want his name to be published. On his way into the Hyatt, Bridgewater founder Ray Dalio told the Financial Times he was “excited to have this relationship [with Xi]”.
But while Xi made an effort to express his country’s open welcome to US business, a combination of whipsawing tensions with Washington, a rocky economic recovery from the pandemic and Beijing’s increasingly assertive domestic security apparatus has damped enthusiasm among American investors for making big bets on China.
A series of US companies have begun packing up their bags or rerouting supply chains out of fear that geopolitical tensions could disrupt business. Technology groups such as Airbnb and LinkedIn have retreated from the country, as have consulting firms Gallup and Forrester Research. Even Apple, which has long relied on Chinese manufacturing, has begun sourcing orders in countries such as India and Vietnam.
Business leaders and analysts said they did not expect Xi’s summit with Biden to fully thaw relations. The two presidents agreed to restart military communications and set up a counter-narcotics working group to tackle fentanyl pouring into the US, but they left with several issues unresolved, most notably tensions over Taiwan, which China claims as part of its territory.
By Ryan McMorrow and Demetri Sevastopulo
