China’s Desperate Makeover: Xi Vows to Play Nice with Foreign Businesses

The best business environment is the rule of law
Open and transparent legal treatment must be guaranteed

As China stakes its all on attracting foreign companies amid an economic slowdown, President Xi Jinping has ordered the protection of foreign companies’ legal rights and intellectual property.

President Xi emphasized during the 10th Central Political Bureau study held the previous day that the best business environment involves the rule of law and that foreign companies should guarantee open and transparent legal treatment.

China’s Efforts to Reengage with Foreign Companies

He emphasized the need to create a market-oriented, lawful, and internationally first-class business environment by effectively utilizing both domestic and foreign rules. He also highlighted the importance of actively and proactively embracing high-level overseas trade rules, continually expanding institutional openness, enhancing trade and investment liberalization and facilitation, and establishing a more advanced open economic system.

President Xi’s remarks coincided with a trend where foreign companies had been distancing themselves from China. AFP observed indications that China is making efforts to reengage with foreign companies.

American and European companies operating in China complain that it is more challenging than ever due to China’s economic slowdown, geopolitical risks, and the implementation of anti-espionage laws. Especially this year, the slowdown in growth and geopolitical tensions have hit investment prospects, and the trust of foreign companies in China has hit rock bottom.

Foreign entrepreneurs have long complained about China’s ambiguous and arbitrary regulations. U.S. officials who visited China this year cited intellectual property theft as the most significant problem among the issues they raised.

However, President Xi has recently indicated a shift in China’s business environment. During the APEC Summit held in mid-month, Xi pledged to implement measures that would facilitate foreign companies’ investments and operations in China, aiming to make it easier for them to do business in the country.

By. Byeon Hyo Sun