Why Beijing wants more foreign direct investments

Former U.S. ambassador to China, Gary Locke joins us now to weigh in. Mr. Ambassador, it’s great to have you back on. Welcome. Thank you very much. So what was your take on what we saw and what we know about this meeting? Well, obviously China wants a more foreign direct investment to help stimulate their economy. They’re coming off of a a really a tough set of years imposed by COVID and all the trade restrictions and the trade wars around the world. But despite those tit for tat retaliatory restrictions on foreign companies doing business in China in retaliation against Western measures against Chinese companies, for many sectors there are still great opportunities for business because there’s still a high demand for US products and services which are highly valued among the Chinese consumers and Chinese businesses. But is it a a safe and fruitful environment for American businesses to invest in right now? Well, obviously any foreign company doing business in China, especially in these tough political, geopolitical times, have to be very, very careful. Many sectors have been limited and so the opportunities for doing business and growth have been curtailed. But there are still others, especially in the consumer side and even in some of the high tech areas where China needs those Western products. China is still trying to become a lot more self-sufficient, especially for instance in technology making their own chips. But until they achieve that self-sufficiency, they’re still going to need American products. And that’s why I think American companies and CE OS are there. Certain sectors still have opportunities there. Mr. Ambassador. Interesting tweet from Ambassador Emanuel to Japan who writes the PR CS version of a charm offensive wooing US executives with lavish dinners and sweet words of encouragement while green lighting cyber attacks on U.S. companies and utilities. Not often charming, frequently offensive. I wonder if you blame some of these CEOs for attending this dinner. Well, obviously they have to make that calculation. What’s in the best interest of their employees, their company, their shareholders, But they need to be very, very careful. It’s not just cyber attacks against U.S. companies here in America, but the restrictions, the interference that the Chinese government will place and utilize even within China on these American and foreign companies. What’s it really also interesting to notice the growth of foreign private companies in China. Their profits have soared dramatically and and even the growth of Chinese private companies have really done well and have grown over the last year compared to the state government. The State Owned Enterprises Secretary Yellen was at a a factory a Georgia solar company yesterday and and she warned that she is worried about dumping jumping global spillover she says from excess capacity that we are seeing in China globe distorting global prices basically what what has happened with other commodities before in solar and other green technologies. She’s going to China next week. How do you how how will this be received there that message. The message is certainly a very stern one from America and it’s one that we are very, very concerned about. And especially as China tries to avoid some of the tariffs imposed by the United States on products like solar components by having much of those products assembled, let’s say in Vietnam try to try to go around the so-called made in China label that are then subject to those tariffs. And many companies in the United States have also filed actions against those Chinese entities doing business or distributing and manufacturing and assembling in other countries. And the Commerce Department is really taking a hard look at that.