Can China's latest charm offensive to reassure foreign business succeed?
China's recent attempts to stabilise foreign investment have involved high-profile action from its top leadership. At
two major international forums – the China Development Forum and Boao Forum for Asia – key officials delivered speeches aimed at attracting foreign capital.
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In particular, President Xi Jinping also
met representatives from the international business community, marking the latest in China's efforts to reassure foreign investors. Additionally, Beijing released the five detained Chinese employees of a
US-based due diligence company , signalling an effort to ease foreign concerns.
But the effectiveness of this latest charm offensive is in question. Economists remain sceptical, partly due to past experience. Last year, after these same two major forums, Xi also met representatives from American business and strategic academic circles. The move was interpreted as a gesture to boost the confidence of US businesses.
Yet China's actual foreign direct investment (FDI) last year
fell by 27.1 per cent to 826.25 billion yuan (US$113.74 billion). FDI fell further in the first two months of this year, down 20.4 per cent year on year.
Since China abandoned its
zero-Covid policy in 2023 and reopened its borders, the government has focused on economic recovery. It quickly became apparent that revitalising China's economy would be impossible without the participation of private enterprises and foreign capital.
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