Xi Courts Global Executives as Trump Escalates Trade Conflict

Chinese President Xi Jinping urged global business leaders to resist protectionism, leveraging discontent over U.S. tariffs to position China as a trustworthy partner. Xi issued a veiled critique of Donald Trump’s policies before 40 top executives in Beijing, including Stephen A. Schwarzman of Blackstone Inc. and Jay Y. Lee of Samsung Electronics Co.

Criticism of U.S. Trade Barriers

Xi criticized restrictions imposed by some nations without directly mentioning the U.S. “They are erecting tariff barriers and weaponizing business through politicization,” he stated at the Great Hall of the People. His speech came as Washington intensified the trade war, triggering threats of retaliation from the EU and other allies.

Strategy to Attract Foreign Investors

Xi emphasized China’s stability and pledged to ease market access. He underscored that the country provides a “transparent and predictable” investment environment. The presence of more than twice the number of business leaders compared to 2024 reflected his intent to broaden the message.

Market Reactions and Business Commitments

The CSI 300 index trimmed losses, closing down 0.4%, while the offshore yuan moderated its depreciation. Executives like Amin H. Nasser of Aramco praised China’s stability and announced expansion plans in the country. Xi also allowed journalists to attend his speech, an uncommon move in previous years.

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Despite promises, Xi did not specify concrete measures to benefit foreign investors. Michael Hart, president of the American Chamber of Commerce in China, warned about persistent barriers and business caution amid the trade war. Companies such as Walmart Inc. and PVH Corp. have faced challenges due to Washington’s tariffs.

Potential New Trade Retaliations

The U.S. is reviewing compliance with the trade deal signed during the Trump administration, which could lead to new global tariffs. Beijing anticipates countermeasures, and Premier Li Qiang stated that China is prepared for “impacts beyond expectations,” aiming to sustain its 5% annual growth.

Dialogue and Diplomacy as an Alternative to Confrontation

Xi urged companies to collaborate with China to uphold global economic order. He cited a Chinese proverb: “Extinguishing another’s lamp won’t make yours shine brighter; blocking another’s path will only lead to blocking your own,” emphasizing the need to avoid zero-sum trade strategies.