China’s trade minister met with top global leaders from the technology, financial and pharmaceutical industries ahead of a high-profile business forum in Beijing, seeking to speed up a slowing economy. foreign investment amid geopolitical tensions.
Wang Wentao’s meetings over two days included meetings with Tim Cook of Apple Inc. and Kwak No-jung, chief executive officer of South Korean chipmaker SK Hynix. He also met with executives from Qualcomm Inc., the world’s largest seller of smartphone processors, and Micron Technology Inc.the largest American manufacturer of computer memory chips.
Foreign business direct investment in China last year rose by the lowest amount since the early 1990s, highlighting Beijing’s difficulties in stimulating its economy. It also must contend with an ever-accelerating outflow of manufacturing as Apple and other U.S. brands begin deploying new capacity in countries from India to Southeast Asia to mitigate risks posed by tensions between the U.S. and China.
Van takes advantage of this opportunity in advance China Development Forum, which begins on Sunday, to meet with key company executives. The annual event, which began in 2000, became one of the few places where foreign business executives could interact with Chinese state leaders. Premier Li Qiang will give the keynote speech this year.
China is trying to counter US restrictions on access to technology. Wang discussed semiconductor cooperation with SK Hynix’s Kwak and expressed hope that the company will continue to expand investment in China. Kwak said SK Hynix will continue to pursue greater development in China, which is one of its most important production bases and markets, according to China’s Ministry of Commerce.
SK Hynix is the world’s second largest manufacturer of memory chips after Samsung Electronics Company., who is also from South Korea. Tensions between the US and China, which include US restrictions on access to certain key products, mean companies need to take action. delicate balance between the two countries to support production and sales.
Read more: $9 billion chip plant stuck in limbo due to US-China rivalry
Micron CEO Sanjay Mehrotra said Wang’s company plans to expand investments in China, according to a government statement. The Commerce Secretary told Qualcomm’s Cristiano Amon that China welcomes high-tech companies to increase investment in China.
Amon said he hopes Chinese and US leaders will create stable expectations and a good business environment for companies. Geopolitical tensions have also negatively impacted foreign business in China: JPMorgan Chase & Co.’s Jamie Dimon. earlier this year said the country’s “risk-reward profile has changed dramatically.”
Trade tensions have also escalated in recent months as Europe launched investigation into Chinese imports of electric vehicles through government subsidies, and came closer introduction of additional tariffs. China subsequently launched its own anti-dumping investigation into brandy imported from the EU, in what was seen as retaliation against France, which supported the investigation into electric vehicles.
Pharmaceuticals, Banks
Wang spent round table with heads of foreign pharmaceutical companies, including Pfizer Inc. and Merck & Co. from the USA, GSK Plc from the UK and Takeda Pharmaceutical Company. from Japan on Saturday.
In a meeting with Jean Lemierre, chairman of French lender BNP Paribas SA, Wang said China was willing to resolve trade disputes with Europe and called on the bank to play a positive role in the dialogue. Lemierre said the bank is willing to facilitate such conversations.
French President Emmanuel Macron plans master Chinese counterpart Xi Jinping in Paris in the spring. The European Union is considering the possibility formal review on how widely its businesses use mature or lower-grade chips from China, joining the U.S. in flagging potential risks to national security and global supply chains.
The US has recently taken additional steps to guard against and limit its rival’s ambitions in artificial intelligence and semiconductors. Wang told Apple’s Cook when they met on Friday that China is willing to work with the US to create a fair, stable and predictable business environment for US and Chinese companies.
Apple’s Cook said his company would invest further in applied research in China.
“We continue to invest in China, in the supply chain, in research and development and in our stores,” Cook said in a video clip of the meeting.
— With assistance from John Liu and Yujing Liu