China’s Xi Seeks to Assure Global Business Leaders Ahead of Fresh US Tariffs

China has struggled to reverse the decline in foreign investment, especially as its economy braces for the impact of additional tariffs imposed by Washington.

China's leader Xi Jinping (C) speaks during a meeting with a group of foreign executives at the Great Hall of the People in Beijing on March 28, 2025. Adek Berry/AFP via Getty Images

Chinese leader Xi Jinping convened a meeting with dozens of global business leaders in Beijing on March 28, aiming to signal a pivot away from the sudden crackdowns that have shaken the confidence of foreign investors amid rising geopolitical tensions.

During the gathering, which included top executives from hedge funds, pharmaceutical companies, and automotive giants, Xi acknowledged the crucial role that foreign investment has played in bolstering China’s economic growth over the past four decades.

“Foreign enterprises contribute one-third of China’s imports and exports, one-quarter of industrial added value, and one-seventh of tax revenue, creating more than 30 million jobs,” Xi said.

Faced with an ailing economy and a sharp fall in foreign investment, Xi pledged to enhance China’s business environment while promoting the country as an “ideal, safe, and promising destination” for foreign investors, according to readouts from state media Xinhua.

The gathering took place at the Great Hall of the People and brought more than 40 foreign business leaders, including FedEx CEO Raj Subramaniam, Mercedes-Benz CEO Ola Kallenius, and HSBC CEO Georges Elhedery, according to readouts and footage from state media.

China has struggled to reverse the decline in foreign investment, especially as the world’s second-largest economy braces for the impact of additional tariffs levied by the United States.

The March 28 meeting followed the China Development Forum (CDF), an annual economic summit held earlier in the week in Beijing and attended by executives from Apple, Pfizer, and other multinational companies.

Xi also held a meeting with foreign business leaders on the sidelines of last year’s CDF, which was attended only by representatives from the U.S. business community.

In 2024, foreign investment in China tumbled to a three-decade low, with official figures showing that it stood at $33 billion, an 82 percent drop compared with the previous year.

Despite Xi’s reassurances to investors, foreign capital continues to flow out of China. January 2025 saw foreign direct investment plummet to $13 billion, marking the lowest start to the year in three years, according to official data.

Amid waning confidence, Chinese authorities released all employees from the Mintz Group, who had been detained by Beijing two years prior, the U.S. due diligence company confirmed on March 25.

In March 2023, authorities detained five local staff members from Mintz, which specializes in background checks and internal investigations, and shut down its Beijing office.

China’s foreign ministry said at the time that Mintz was “suspected of illegal business operations,” and that the case remained under investigation. In a notice dated July 2023, Beijing municipal authorities imposed a fine of $1.5 million against Mintz for undertaking “foreign-related statistical investigations” without the necessary approval.

The probe into Mintz was part of a broader regulatory crackdown against foreign businesses operating in the country, which prompted U.S. companies to describe China as “uninvestable,” then-U.S. Commerce Secretary Gina Raimondo told reporters in August 2023.

Stephen Schwarzman (C), CEO and chairman of Blackstone Group, attends a meeting of Chinese leader Xi Jinping and a group of foreign executives at the Great Hall of the People in Beijing on March 28, 2025. Adek Berry/AFP via Getty Images

Ahead of the March 28 meeting in Beijing, Chinese officials mounted a charm offensive by increasing meetings with top foreign executives to reassure them of the attractiveness of the Chinese market.

On March 25, China’s economic tsar, He Lifeng, met with Stephen Schwarzman, Blackstone Group chairman and CEO, while Chinese Commerce Minister Wang Wentao spoke with Boeing Global President Brendan Nelson.

Chinese Premier Li Qiang also invited seven American executives during the meeting with Sen. Steve Daines (R-Mont.) in Beijing earlier in the week. According to Daines’s office, the business leaders expressed their longstanding commitment to operating in China and discussed current challenges.

President Donald Trump in February announced a plan to impose reciprocal tariffs to level the playing field in trade, addressing what he described as unfair trade practices by U.S. trade partners.

Set to go into effect on April 2, these new tariffs will target countries that impose trade barriers on U.S. products, with China likely being one of the key targets.

Trump has already imposed 20 percent tariffs on all Chinese goods, citing the influx of fentanyl into the United States. In retaliation, China has announced up to 15 percent tariffs on certain U.S. agricultural goods and added 15 U.S. companies to its export control list.

Reuters contributed to this report.