Xi Jinping Visit to San Francisco - Skepticism from US Businesses Amidst Shifting Economic Landscape
As Chinese President Xi Jinping prepares for a high-profile dinner with American CEOs, the atmosphere is starkly different from his last US visit in 2015. Back then, American business leaders were eager to engage with China's booming economy, but today, skepticism prevails due to China's tightening business controls and slowing economic growth.
In 2015, CEOs from top US companies were optimistic about China's integration into the global economy, despite its state-controlled economic model. The scene of Xi standing beside industry giants like Jeff Bezos, Mark Zuckerberg, and Tim Cook symbolized the eagerness of US businesses to tap into China's market. Zuckerberg's Mandarin greeting to Xi highlighted the efforts American companies were willing to make to gain favor in China.
Fast forward to today, and the landscape has dramatically changed. With Facebook still banned in China and Zuckerberg recovering from an injury, he, among other leaders, is notably absent from the Asia-Pacific Economic Cooperation (APEC) summit. This shift reflects years of heightened tensions and a reassessment of the risks involved in engaging with the Chinese market.
The change in attitude is not limited to tech giants. The US-China Business Council’s recent survey indicates that geopolitics is now a significant concern for American businesses, alongside apprehensions about China’s domestic policies. This sentiment is a far cry from the earlier optimism and reflects growing doubts about China's role in the global economic system.
Xi's current visit, which includes a panel with leaders from Thailand, Vietnam, South Korea, and Chile, signals a potential shift in US investment focus. While companies like Microsoft, Tesla, and Citigroup are still keen to engage with China, the overall enthusiasm has waned.
Xi's challenge is to counter the narrative that China is becoming 'uninvestable' due to its increased state control and regulatory restrictions. Experts predict that Xi’s speech will highlight China's openness, but the reality may tell a different story. The Chinese leader’s emphasis on state control over the past years has not gone unnoticed by the global business community.
The meeting between Xi and US President Joe Biden is another focal point of the visit. While it aims to stabilize relations between the two superpowers, expectations for resolving major economic issues like trade tensions and semiconductor export controls are low. Cooperation on AI, curbing fentanyl, and resuming military communication might see some progress, but larger issues are likely to remain unresolved.
In summary, Xi’s visit to the US this time around is set against a backdrop of increased skepticism and wariness from the American business community. The changing dynamics reflect a broader recognition of the challenges and risks associated with engaging with China's state-controlled economy. As Xi tries to present a positive outlook, the real test will be whether American businesses are convinced enough to deepen their investments in China amidst the shifting geopolitical and economic landscape.