President Xi Jinping met with a group of US business executives in Beijing as bilateral tensions continue to rise over trade restrictions and accusations of cyberattacks.

The Chinese leader on Wednesday met with representatives from American business, strategic and academic communities, the official Xinhua news agency said. Xi took a group photo with the attendees before the meeting, according to state broadcaster CCTV.

China is seeking to shore up confidence amid a slowdown in foreign investment, which slumped to a 30-year low last year by one measure. 

Tensions with the US has risen in recent weeks after ties stabilized following Xi’s meeting with President Joe Biden in San Francisco in November. On Tuesday, China said it filed a complaint to the World Trade Organization (WTO) over US electric vehicle subsidies. Earlier in the week, the US and the UK accused state-backed Chinese hackers of targeting politicians, companies and dissidents, as well as stealing troves of British voter data. 

Relations with the US risk getting more tense with former president Trump already vowing massive tariffs on the campaign trail that could shrink trade between the two nations to practically nothing. Trump’s rhetoric may add pressure on Biden to take harsher measures in the run-up to election day.

China appears to be ramping up outreach to foreign investors as it seeks to achieve an annual growth target of around 5%, a goal deemed ambitious by some economists. The Ministry of Commerce in January pledged to hold a round-table meeting with foreign companies every month to hear and address their concerns.

However, investors have complained about whiplash as China pursues its dual goals of development and security, with executives hearing warm words only to then see authorities probe consultancy firms, expand a vague anti-spy law and restrict access to data. A structural economic slowdown has also led executives to re-evaluate the balance between risks and rewards for operating in the country.

Prior to the pandemic, Xi used to hold more regular gatherings with executives at events such as the annual Boao Forum for Asia, which is sometimes described as China’s Davos. He’s not expected to attend this year’s version, which started on Tuesday in Hainan.

Many US CEOs are in Beijing for the annual China Development Forum, which gathers together global business leaders and Chinese officials. Some executives attending the confab extended their stay or moved previously planned appointments in order to meet with Xi after receiving a formal invitation last week, Bloomberg News reported.
 

  - Bloomberg