Business in the Far East
Charm offensive – China’s XI meets BMW, Siemens and Co.
For some time, Beijing has been campaigning to invest in China for some time. In the country of power of the country, head of state XI headed by German and global large corporations. There is a reason.
In the middle of the US trade conflict with China and Europe, Chinese head of state XI Jinping has promoted international groups for his country. In the large hall of the people in Beijing, XI received Siemens boss Roland Busch, Mercedes boss Ola Källenius and BMW boss Oliver Zipse-but also the group of corporations from Samsung, Lee Jae Yong, and US Hedge fund manager Ray Dalio.
“Investing in China means investing in the future,” XI advertised. Foreign companies are an important part of China’s modernization: “China is now the largest market in the world for companies such as Mercedes-Benz and BMW.”
Restore trust
China continues its charm offensive. The second largest economy in the world wants to again become a more attractive location for foreign companies. In 2024, direct investments from abroad decreased as much as it has not been since 2008. Some companies also changed their strategy and built up a second mainstay outside the People’s Republic in order to be less dependent on China.
XI emphasized that they had campaigned for more exchange and the protection of the rights of foreign companies. He hoped that most foreign companies took their doubts and took advantage of China’s development opportunities, said the 71 -year -old chairman of the Communist Party.
China advertises itself at further meetings
Beijing wants to create trust again. Last weekend, dozens of CEOs from companies such as Apple, BMW, Mercedes, Siemens and managers from the tech and pharmaceutical industry met in Beijing. Prime Minister Li Qiang praised the successes of the People’s Republic, for example, in the field of artificial intelligence and promised open markets and other reforms.
China is extremely important for many companies because of the size of its market. German carmakers who had done good business in the Far East for years had to accept setbacks from increased Chinese competition and a weak demand in Germany after the Corona pandemic. Most recently, German car brands closed partnerships with Chinese tech giants like Alibaba to stay competitive in China.
Due to the economic pressure of the US tariffs under President Donald Trump, China could now use a gap in the opinion of some observers and expand their relationships with Europe. But the relationship between China and the EU is also tense with tariffs.
Overcapacity and tariffs should therefore also be an issue when visiting EU trade commissioner Maros Sefcovic in Beijing this week. In advance, the EU Chamber of Commerce in China from Sefcovic called for problems for European companies, such as the trade deficit and the difficult access to public tenders.
dpa
Source: Stern
