Li Qiang, a key Chinese official, reiterated that no one benefits from a trade war, underscoring the necessity for cooperation between the U.S. and China.

Foreign firms are increasingly relocating manufacturing away from China due to geopolitical tensions and regulatory challenges, leading to a growing unease among international businesses operating in the country.

China's economy is grappling with a property sector collapse and diminishing growth momentum, compounded by the ongoing trade war with the U.S.

On March 28, 2025, Chinese leader Xi Jinping met with over 40 global executives, including CEOs from AstraZeneca, FedEx, Saudi Aramco, and Toyota, to promote foreign investment amidst rising trade tensions with the United States.

The structured discussion allowed seven companies to present their views, as Xi emphasized the need for a long-term perspective and urged participants to avoid actions that could disrupt global supply chains.

Despite these outreach efforts, concerns persist regarding China's tightening regulations and crackdowns on foreign companies, which have contributed to a decline in business sentiment.

In response to these challenges, China has set a modest economic growth target of around 5% for 2025, the same as the previous year, although analysts consider this difficult to achieve.

Experts view this gathering as a pivotal moment for business diplomacy, emphasizing the need for actionable outcomes from such corporate-government dialogues.

The Chinese government is actively seeking to attract foreign businesses following stringent COVID-19 restrictions, as it faces issues like deflation and slowing growth.

The meeting with global executives comes at a time when foreign direct investment in China has plummeted to a three-decade low, highlighting the urgency of Xi's call for enhanced business diplomacy.

China's economic challenges, including overbuilding in the real estate sector, have tied up significant capital and diminished both business and consumer confidence, further complicating the investment landscape.

To stimulate its $20 trillion economy, the government plans to implement various initiatives, including a $41.3 billion consumer rebate program aimed at boosting domestic demand.