Voice of Hope March 22, 2024
Interview and report by our reporter Wang Xiao
As China’s economy faces a recession and foreign capital starts to withdraw from the country, the China Development Forum hosted by the State Council of the Communist Party of China has taken on added significance. The forum has invited global business leaders and senior executives of multinational companies to participate, with the leader of the Communist Party of China, Xi Jinping, set to meet with the participants in an effort to attract and stabilize foreign capital investments.
Xie Tian, a professor at the Aiken School of Business at the University of South Carolina, expressed concerns over the CCP’s consolidation efforts under the guise of national security. According to Tian, these efforts have further damaged China’s business environment, leading to doubts among foreign investors about their security and the fairness of business operations in the country.
The annual China Development Forum is scheduled to take place in Beijing from the 24th to the 25th of this month. With Lu Hao and Evan Greenberg serving as the Chinese and foreign chairmen respectively, the forum’s theme this year is “Sustainable Development of China.” Premier Li Qiang is expected to deliver a keynote speech at the opening ceremony of the event.
Established in 2000, the China Development Forum is a national-level event that provides a platform for global corporate leaders to engage with Chinese decision-makers. Despite efforts by Premier Li Qiang in the past to reassure foreign investors about China’s commitment to openness, the outflow of foreign capital from the country has continued.
This year’s forum is expected to attract a significant delegation of global business leaders, with a focus on topics such as Chinese economic growth, artificial intelligence, and climate change. The United States is set to be the largest delegation at the conference, with over 85 executives, including Tim Cook of Apple and Stephen Schwarzman of Blackstone, expected to attend.
Commentators have raised concerns about Xi Jinping’s growing influence within the CCP, with some suggesting that his concentration of power could lead to political instability. Despite efforts to engage with foreign business leaders, skepticism remains about China’s commitment to creating a conducive business environment.
As the forum approaches, the attention is on how Xi Jinping will address the concerns of foreign investors and whether meaningful progress can be made in attracting foreign capital amidst growing economic challenges. Time will tell whether the efforts to attract foreign investment will yield the desired results or if foreign businesses will continue to remain cautious about investing in China.