Xi warns foreign executives of tough trade challenges

Chinese leader Xi Jinping on Friday warned of "severe challenges" to global trade and vowed to open China’s doors "wider and wider" to foreign firms as Beijing faces a growing trade war with the United States.

In a meeting with executives, including hedge fund boss Ray Dalio and Samsung Electronics chief Lee Jae-yong, at Beijing's Great Hall of the People, Xi said "unilateralism and protectionism" were on the rise.

"Multilateralism is the inevitable choice for addressing the difficulties and challenges facing the world, and economic globalisation is an unstoppable historical trend," Xi said.

His remarks appeared to be a veiled criticism of U.S. tariffs imposed by former President Donald Trump, which have dampened the prospects for Chinese exports after they hit record highs last year.

As global trade tensions increase, Beijing has been working to attract foreign businesses to counter its faltering economic growth. Xi also positioned China as a defender of the multilateral trading system as U.S. policy threatens international stability.

During the meeting, Xi reiterated China's commitment to upholding World Trade Organization rules and advancing trade and investment liberalization.

"All parties should work together to uphold the global economic order," he said, adding that foreign enterprises in China can "develop their advantages and capabilities and gain an advantage in global competition."

Exports have traditionally driven China’s growth as a manufacturing powerhouse, but escalating trade and geopolitical tensions now threaten this vital sector.

Foreign firms in China have long raised concerns about an uneven business environment, citing issues such as intellectual property theft, regulatory opacity, and unequal treatment compared to local businesses.

A 2023 counterespionage law has further strained relations, with concerns over China's treatment of foreign firms intensifying.

This week, U.S. due diligence firm Mintz Group reported that China had released five local employees detained more than two years ago during a crackdown on foreign consultancies with multinational links. Beijing later said the company was under investigation for "illegal operations" but did not provide further details.

Other U.S. firms targeted in the 2023 crackdown included Bain & Company and Capvision.