Amidst the trade tensions and allegations, the recent visit of Chinese President Xi Jinping to the United States indicates that maybe the U.S. and China need each other more than ever before.
President Xi and President Biden had their first face-to-face meeting in a year, highlighting the significance of this diplomatic engagement. As a part of his visit, Xi will be having dinner with some of America’s most prominent business leaders at the Asia-Pacific Economic Cooperation (APEC) meeting in San Francisco.
While the guest list for the dinner remains confidential, sources suggest that executives from Microsoft, Tesla, and Citigroup will be attending. Numerous other company executives have also received invitations, leading to a scramble for seats at the dinner table.
Businesses have the opportunity to buy eight seats at regular tables or one seat at President Xi’s table for $40,000—a clear indication of his draw for U.S. companies. However, it is important to note that this engagement is not one-sided. President Xi’s visit to the U.S. and his emphasis on attracting American business investment stem from China’s recent foreign direct investment deficit of $11.8 billion in the third quarter of 2023. This deficit represents more money leaving the country than entering it and raises concerns about China’s economic prospects.
With this in mind, President Xi aims to showcase the potential for U.S. businesses to reinvest in China, the world’s second-largest economy. His efforts to court American business leaders reflect the necessity to rectify the investment deficit.
Overall, the visit of President Xi Jinping demonstrates the intertwined relationship between the U.S. and China. It emphasizes how crucial it is for both countries to establish strong economic ties for mutual benefit.
