In a bid to draw foreign investors, Chinese Premier Li Qiang interacted with top global business leaders at the World Economic Forum in Davos, Switzerland.
What Happened: On Tuesday, Li met with the heads of prominent firms including JPMorgan Chase & Co. JPM and Intel Corporation INTC on the sidelines of the World Economic Forum, Bloomberg reported. The focus of the meeting was China’s appeal to foreign investors.
Li attended a lunch hosted by Klaus Schwab, the founder and executive chairman of the WEF. Also present were the leaders of 14 multinational enterprises. The Premier emphasized China’s stability and the potential for high returns on investment.
“Investing in China will bring huge returns and a better future,” Li said. He further assured the business chiefs of China’s commitment to solving any issues faced by foreign enterprises operating in the country.
Despite growing tensions between Washington and Beijing, major figures like Jamie Dimon, CEO of JPMorgan, have been pursuing business expansion in China. Li has extended a warm welcome to foreign businesses, promising a stable and fair business environment.
Why It Matters: The meeting at the World Economic Forum comes at a time when China is facing challenges in its economic landscape. The nation recently experienced its first quarterly deficit in foreign direct investment, a sign of increasing pressure from capital outflows.
Amid ongoing economic challenges, the Chinese stock market suffered a massive 87% drop in foreign investment in 2023. This trend, combined with other economic indicators, has led to growing pessimism among global fund managers about China’s future.
However, Li’s recent assurance of a stable and favorable business environment may signal a shift in the country’s approach to foreign investors.
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