American business leaders are expected to host Chinese President Xi Jinping at a dinner in San Francisco Wednesday after his meeting with President Biden at an international economic conference.
The dinner, hosted by the U.S. China Business Council and the National Committee on U.S. China Relations, will take place during the Asia Pacific Economic Cooperation Summit — an annual meeting of 21 Pacific nations that account for about half of all global trade. It comes at a consequential time for the U.S. and China, which represent the first and second largest economies in the world, respectively, and are strongly linked by trade.
Hundreds of executives from varying sectors including banking and technology are expected to attend, and Xi is also expected to speak at the dinner.
The forum offers an opportunity for U.S. business leaders to directly engage with Xi, who has courted foreign investment to help boost China’s slowing economy. Just this year, a parade of U.S. business leaders including Bill Gates, who met with Xi, have visited China. Elon Musk and JP Morgan Chase CEO Jamie Dimon have also traveled to China.
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The Chinese Embassy in Washington did not comment on the dinner.
But American firms, which for decades poured cash into China and fueled its growth, are increasingly skeptical of contributing to expanded state control. Many fear that geopolitics — especially the economic competition between the U.S. and China — may make extensive investments in China too risky.
This summer, Chinese police raided the Shanghai offices of U.S. firm Capvision, Bain & Company and Mintz Group. Other American consulting firms — have also been targeted. All three firms conduct market research for Western firms on investing in China.
In August, President Biden issued an executive order curbing U.S. investment in the Chinese semiconductor, quantum computing and artificial intelligence sectors. The administration argues these products could have military applications.
Shortly after the new investment restrictions were announced, China slapped export restrictions on two key minerals essential to semiconductor production — gallium and germanium. A special export license is now required to obtain these minerals. As a result, exports from China in the most recent reporting period plummeted — to 1 kilogram.
Earlier this week, Jose Fernandez, the under secretary for economic growth, energy and the environment at the State Department met with representatives from the semiconductor industry in Silicon Valley. He acknowledged there are concerns among some companies about the lack of supply and the USG is helping source alternate supplies.
