American business leaders are set to host Chinese President Xi Jinping at a dinner in San Francisco following his meeting with President Biden at an international economic conference. The dinner, organised by the U.S. China Business Council and the National Committee on U.S. China Relations, will coincide with the Asia Pacific Economic Cooperation Summit, a gathering of 21 Pacific nations responsible for roughly half of global trade. This meeting holds significance as the U.S. and China, the world’s first and second-largest economies, are deeply intertwined by trade.
Anticipated to draw hundreds of executives from diverse sectors such as banking and technology, the dinner will provide a platform for direct engagement between U.S. business leaders and President Xi, who has actively sought foreign investment to bolster China’s slowing economy. Notably, various U.S. business figures, including Bill Gates, Elon Musk, and JP Morgan Chase CEO Jamie Dimon, have visited China this year, reflecting ongoing economic ties.
However, American firms, once major contributors to China’s growth, are becoming more cautious due to expanding state control and concerns about geopolitical tensions impacting investments. Instances like the raid on U.S. firms’ offices in Shanghai and President Biden’s executive order limiting U.S. investment in certain Chinese sectors contribute to this skepticism.
In response to U.S. investment restrictions, China imposed export controls on crucial semiconductor production minerals. This move, along with concerns about semiconductor supply shortages, prompted a meeting between the under secretary for economic growth, energy, and the environment at the State Department and representatives from the semiconductor industry in Silicon Valley. The U.S. government acknowledged concerns and pledged assistance in sourcing alternative supplies. These developments underscore the complex dynamics between the U.S. and China, balancing economic engagement with growing concerns and regulatory measures.