September 19, 2023
1 min read

Beijing’s ‘Open Arms’ Strategy: Will Western Companies Bite?

Foreign companies and investors have grown wary of rising risks in the world’s second largest economy, including a worsening slowdown marked by weak domestic demand…reports Asian Lite News

China wooed a number of top Western companies with renewed promises to open up its financial industry and create a more welcoming environment as Beijing tries to reverse a record low in foreign investment in the face of mounting economic challenges, the media reported.

Pan Gongsheng, governor of the People’s Bank of China (PBOC) and head of the country’s foreign exchange regulator, chaired a symposium with representatives from foreign companies, including JP Morgan, Tesla, HSBC, Deutsche Bank, BNP Paribas, Japan’s MUFG Bank, German chemical producer BASF, commodities trader Trafigura and Schneider Electric, according to a post on the websites of the PBOC and the State Administration of Foreign Exchange (SAFE), CNN reported.

The symposium was intended to “increase financial support to help stabilize foreign trade and foreign investment” and improve the “investment environment” for foreign business, the statement said.

Foreign companies and investors have grown wary of rising risks in the world’s second largest economy, including a worsening slowdown marked by weak domestic demand and a housing crisis, Beijing’s desire to prioritise national security over economic growth and deteriorating relations between China and many Western countries, CNN reported.

In the first eight months of this year, foreign direct investment (FDI) into China fell 5.1 per cent from a year ago, according to data released by China’s commerce ministry on Sunday.

A separate measure for foreign investment painted a grimmer picture.

Direct investment liabilities, a measure of FDI reflected in a country’s balance of payments, fell to just $4.9 billion in the April to June months, down 87% from a year earlier, according to data published by SAFE last month. That was the lowest amount in any quarter since records began in 1998, CNN reported.

ALSO READ: WHO Urges China for Transparency on COVID-19 Origins

Previous Story

At UNGA, leaders adopt landmark SDG declaration  

Next Story

UK Presses On with Trade Talks with India Despite Trudeau’s Accusations

Latest from -Top News

ADNOC signs 15-year LNG deal with Indian Oil

Under the deal, LNG cargoes can be delivered to any port across India, enhancing the country’s energy security and meeting its rising energy demand. Abu Dhabi National Oil Company (ADNOC) has signed

Pakistan’s Economy Held Hostage by Military

Despite the crisis-ridden economy merely managing to survive on IMF loans, the military seems to be facing no constraints on its spending spree on weapons such as tanks and planes….reports Asian Lite

Xi to Personally Welcome Modi, Putin   

Analysts suggest that Xi is intent on using the Tianjin summit to showcase an emerging multipolar world order, distinct from Western-led institutions Chinese President Xi Jinping will personally welcome Prime Minister Narendra

‘Ukraine Banks On India For Peace’

Zelensky says Kyiv was relying on “India’s contribution” to bring the conflict to a close, emphasising that New Delhi’s long-standing commitment to peace and dialogue gave it a unique role in global
Go toTop

Don't Miss

China compares Ukraine with Indo-Pacific

Underlining that Asia-Pacific now faces two opposite choices, Yucheng asked,

China assumes SCO presidency, to host summit next year

Ambassador Xu underscored China’s commitment to making significant contributions towards