Xi to meet with top CEOs as Beijing eyes strengthened ties with foreign firms

The global heads of German automakers BMW and Mercedes, as well as chip giant Qualcomm are among foreign business leaders due to meet with Chinese President Xi Jinping today, sources said yesterday.

The meeting in Beijing comes as Chinese authorities seek to bolster ties with foreign companies amid a drop in investment and in the face of US tariffs targeting the world's second-biggest economy.

The meeting follows on from last weekend's China Development Forum, a flagship business event that this year saw Premier Li Qiang urge countries to open their markets and combat "rising instability and uncertainty."

Executives from Apple, Pfizer, Mastercard, Cargill and others met with Chinese commerce ministry officials over the course of the forum.

The frequency of meetings between foreign executives and high-level Chinese authorities has picked up over the past month after official data showed foreign direct investment plummeted 27.1 percent year-on-year in local currency terms in 2024.

That marked the biggest drop in FDI since the 2008 global financial crisis.

Global firms have been moving manufacturing away from China in an effort to diversify their supply chains and derisk their operations among escalating geopolitical tensions. China's slowing economy has also played a role in the decline in investment, while a sweeping crackdown on consultancy and due diligence firms has rattled some foreign executives.

China remains one of the biggest markets for German automakers, including BMW, Mercedes and Volkswagen, in spite of market share leakage to Tesla and Chinese rivals including BYD and Xiaomi.

It may become even more important after Trump's announcement of a new 25 percent tariff on imported autos to the US due to go into effect on April 3.

Meanwhile, China and France will hold three high-level dialogues on strategic, economic, financial and cultural issues this year, Foreign Minister Wang Yi said after

a "constructive" meeting with his French counterpart Jean-Noel Barrot in Beijing yesterday.

Wang said both countries will also put to use the consultation mechanism between foreign ministries for in-depth communication on common issues.

Both sides agreed to deepen cooperation in agriculture, nuclear energy, aviation and aerospace, while exploring innovative industries such as artificial intelligence, digital economy, intelligent connected vehicles, green hydrogen and biomanufacturing.

"We will also encourage more capable and willing Chinese enterprises to invest and do business in France," Wang said.

Both ministers also commended their countries' joint efforts toward addressing climate challenges.

"China is resolute in its commitment to advancing international climate governance and addressing climate challenges," Wang said.

Barrot is in China on a two-day visit that ends today.

Reuters