US Companies Will Spend Tens of Thousands of Dollars on Dinner With Xi: Source

Chinese President Xi Jinping is scheduled to have dinner with American business executives on Wednesday in San Francisco. This is part of his efforts to woo American corporations and counter his nation’s recent challenges to attract foreign investment.

Following a day of talks between US President Joe Biden and Chinese President Xi, the two leaders of the world’s two largest economies will have dinner outside of the Asia-Pacific Economic Cooperation (APEC) forum with the goal of mending tense relations between them.

As they look for strategies to deal with China’s economic slowdown, the US desire to “de-risk” some American supply chains away from China, and the uncertainty brought on by growing Chinese security regulations, American firms will get the opportunity to hear directly from China’s leader.

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“The aim of the dinner is to promote improved communication,” a person with knowledge of the plans told Reuters. They did not reveal the speaker but did disclose that officials from the Chinese and American governments will take turns at the platform. However, the National Committee on US-China Relations (NCUSCR) and the US-China Business Council (USCBC), the event’s hosts, have not yet made an official announcement. It also makes for uncomfortable viewing.

Some US companies are willing to spend tens of thousands of dollars to hear from a “Chinese state leader” from a government that Washington has accused of committing genocide against Muslim Uyghurs, according to event notifications seen by Reuters. China has vehemently refuted the charges.

Regarding the scheduled meal, the USCBC and NCUSCR both declined to comment. A request for comment was not answered by the Chinese embassy in Washington.

Expected to give a speech, Xi will be keen to persuade US companies that China is open for business following the country’s first-ever quarterly shortfall in foreign direct investment.

In keeping with Xi’s emphasis on national security, China has grown more wary of engagement with Western corporations, even as it lifted COVID-19 pandemic rules this year that virtually closed its borders. An additional setback to investor trust has been Xi’s supervision of a crackdown on US due diligence and consultancy firms.

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Human Rights And “Filet Mignon”

Trade and business have dominated US-China relations for decades, supporting Beijing’s rapid economic recovery and providing what Beijing has frequently referred to as the stabilizing force in otherwise tense relations. However, worries about a new kind of cold war between the opposing geopolitical and economic superpowers have put businesses in both governments’ crosshairs.

Xi is making his first trip to the US in almost six years, and the extravagant dinner—which may cost up to $40,000 for a table of eight—is typical of previous Chinese president visits, according to an event notice.

Although Reuters was unable to get a list of attendees, executives from a few companies told Reuters in private that they would avoid the event due to concerns about the relevance of the event for their operations in China and the political dangers in the US. Former US trade official turned business advisor Jeff Moon stated that while China would seek to improve Xi’s reputation and draw in investment, he doubted the meal would “move any needles.”

Some American corporations have been under fire from US lawmakers for allegedly turning a blind eye to claims of forced labor in China, and some congressmen have been particularly harsh in their criticism of the incident.

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“How is the conversation at dinner going?Whoa, there’s some dryness to this filet mignon. How is the over a million Uyghur Muslims being held in extrajudicial detention going? stated Mike Gallagher, the Republican who chairs the House of Representatives’ China Select Committee.

Biden has worked diplomatically to repair ties, which many observers considered to be at an all-time low following the US’s February shooting down of an alleged Chinese surveillance balloon, despite human rights concerns. According to the Biden administration, dialogue at the highest levels is crucial to keeping competitiveness from devolving into hostilities and to safeguarding the interests of the world economy.

Before the APEC meeting, Janet Yellen, the Treasury Secretary under President Biden, reaffirmed that although the US wanted to lessen its reliance on China in specific sectors, it did not want a complete economic decoupling.

According to Nirav Patel, CEO of consultancy The Asia Group, Xi is on his “reassurance tour,” and business leaders will be looking to him to set expectations for how international companies will be handled in China. This meal is part of that tour. “They have come to accept that there’s no substitute for hearing and seeing and observing what Xi Jinping is doing,” said Patel. “Of course, there are some that want to be able to demonstrate that they are committed to China and their presence in these meetings demonstrates that.”