Despite the heightened tensions between the US and China following the sighting of a suspected Chinese surveillance balloon over the United States, top executives from multinational companies are gradually returning to China as it relaxes its coronavirus restrictions.
Apple CEO Tim Cook, Mercedes Benz chairman Ola Källenius, and Pfizer Inc. CEO Albert Bourla are expected to visit the country this month.
Volkswagen AG’s chief executive Oliver Blume had already visited China from late January to early February. These visits highlight the continued importance of the economic opportunities presented by China’s reopening for Western companies, even amid escalating tensions between China and the United States.
For many executives, these visits will be their first to China since the COVID-19 pandemic began. Tim Cook, who is reportedly planning to attend the China Development Forum in March, has previously served as the event’s co-chairman.
His expected visit follows Apple’s decision to relocate some of its production lines outside of China after violent protests in November over COVID restrictions and wages.
Some companies are prioritizing meetings with managers and site visits to local operations. Others plan to meet with local business partners and government officials.
In the coming months, dozens of business leaders are expected to attend various business conferences in China, such as the Shanghai International Automobile Industry Exhibition, the China Development Forum, and the Boao Forum for Asia.
For China, these visits offer hope for investment from multinationals. The country’s economy has been struggling, with a growth rate of only 3 percent in 2022, one of its slowest rates in decades.
While Western companies are looking for clarity on the future of US-China relations, economic ties between the countries remain strong.
In 2022, US imports of goods from China were valued at $536.8 billion, a 6.3 percent increase from the previous year. US exports to China also grew by 1.6 percent, reaching $153.8 billion.
Take Volkswagen, for example. China has been the automobile manufacturer’s largest market for years. However, competition from local automotive companies has caused Volkswagen’s market share to decline by nearly one-fifth over the past three years.
Blume, who took over as Volkswagen’s chief executive five months ago, last visited China in November as part of the business delegation that traveled with German Chancellor Olaf Scholz to the country.
His visit this year “is a very strong signal to our partners in the region. It makes clear how important the Chinese market is for us,” stated Ralf Brandstätter, who heads Volkswagen in China, in a message to his employees.
Business leaders note that the volume of business trips to China is still well below pre-pandemic levels and will take time to recover as airlines gradually increase the number of flights.
