Fissures over US investments stall plans for Chinese business leaders to join Xi visit

Differences in investments between the United States and China have created obstacles for a Chinese delegation expected to accompany President Xi Jinping during his upcoming state visit to the US, according to sources. As the window for their travel narrows, with Xi's arrival in Washington expected by Wednesday, disagreements over the Board of Investment and potential Chinese investments in the US have resulted in uncertainty regarding the delegation's participation.

The investment forum, one of the deliverables from Xi and US President Donald Trump's last summit in Beijing in May, has remained stalled. Despite this, a source still anticipated a Chinese delegation's presence, citing the participation of US business leaders at Thursday's state dinner at the White House.

Notable US business leaders attending the high-profile event include Nvidia CEO Jensen Huang, OpenAI CEO Sam Altman, and Apple board chairman Tim Cook. The South China Morning Post reported that Chinese and US officials discussed the possibility of business leaders joining Xi's delegation to Washington, with the idea rooted in reciprocity from the US executives' attendance in May. However, a final decision on the matter has yet to be reached.

Prominent Chinese firms like electric vehicle maker BYD, battery manufacturer CATL, and smart manufacturing giant Xiaomi were expected to be part of the delegation. Despite mixed signals from Washington on Chinese carmakers investing in the US, some Chinese automakers are still considering setting up manufacturing plants in the country. However, the White House emphasized that national security concerns and existing regulations would pose significant hurdles for such investments.

US Trade Representative Jamie Beshears stated that Chinese carmakers already faced numerous challenges in the US market, including restrictions on connected vehicles and tariffs exceeding 120%. Both sides continue to negotiate over the extension of the 2025 Busan trade agreement, while also reporting progress on implementing a limited tariff-reduced trade mechanism.

During Trump's 2015 visit to Beijing, 15 prominent Chinese corporate leaders joined Xi in high-level business events, but no Chinese business executives accompanied him during Xi's 2017 US trip to meet Trump.