Xi Reassures Global CEOs as Trump Steps Up Push to Isolate China

President Xi Jinping pledged to provide a better business environment for foreign firms, even as Chinese companies come under increased scrutiny abroad.

“We will continue efforts to deepen reform and opening, and provide a more sound business environment for Chinese and overseas investors,” Xiwrote in a brief replyletter to a group of global chief executives, published Thursday by the official Xinhua News Agency. “Your decision to stay and develop in China is a correct choice.”

Chinese companies operating abroad have come under increased scrutiny for their government ties in recent months, notably tech giantHuawei Technologies Co. The U.K. on Tuesday joined a handful of other nations in banning Huawei equipment from its next-generation mobile networks, citing security risks.

U.S. President Donald Trump’s administration is also pushing American and other foreign companies to move their supply chains out of China, and even publicly floated the need for a group of friendly nations in Asia that could help produce essential goods.

Why the U.S. Can’t Easily Break China’s Grip on Supply Chains

Xi’s comments came as Chinaannounced the economy was making arecovery from the impact of the coronavirus pandemic, with gross domestic product growing 3.2% in the second quarter from a year earlier.

Over a dozen representatives from the Global CEO Council wrote a letter to Xi offering suggestions on China’s economic development and Sino-foreign cooperation, according to Xinhua. Premier Li Keqiangmet with members of the council last year, including the chairmans or CEOs ofUnited Parcel Service Inc.,Volkswagen AG,Rio Tinto Plc,Nokia Oyj,Schneider Electric SE,ABB Ltd., andArcelorMittal SA, according to the official China Daily newspaper.

— With assistance by Lucille Liu, and Jing Li

Source: Read Full Article