Business Brief (March 23): China Reassures Foreign Enterprises on Stability

1. Chinese Premier Li Qiang, speaking at the China Development Forum, stressed that China aims to be a source of stability for the global economy, promising to grant foreign enterprises national treatment and emphasizing China’s commitment to being a reliable international partner. This reassurance comes amidst global uncertainty and is intended to bolster international confidence in China’s economic policies.[para. 1]

2. Vice Premier He Lifeng conducted meetings with the U.S.-China Business Council and executives from major multinational corporations, including HSBC, UBS, Siemens Healthineers, and others. He expressed a desire for American businesses to help strengthen and stabilize the trade relationship between the U.S. and China, signaling ongoing efforts to maintain robust economic ties.[para. 2]

3. The Chinese Ministry of Commerce introduced 16 new policies to encourage inbound consumption, including expanding the number of countries eligible for unilateral visa-free entry and streamlining transit visa policies. These measures are designed to improve foreign visitors’ experiences in China and boost cross-border tourism and business activity.[para. 3]

4. In an effort to combat corruption and promote responsible decision-making, Chinese authorities issued strict new regulations targeting state-owned enterprise leaders, explicitly banning 58 specific behaviors such as holding shares through proxies and engaging in reckless business expansion or excessive debt accumulation. The aim is to foster professional integrity and accountability.[para. 4]

5. Following a steep drop in domestic pig prices after the holiday season, China’s National Development and Reform Commission and the agriculture ministry deployed frozen pork reserves and advised farming companies to cut production, all to stabilize the market amidst shrinking consumption and avoid sustained price slumps.[para. 5]

6. In international news, media reported that U.S. President Donald Trump's administration set out conditions for a ceasefire with Iran, which Tehran countered with six firm demands. Trump, however, stated he is not interested in a ceasefire and the U.S. will halt responsibility for escorting ships in the Strait of Hormuz. Despite this, the U.S. approved temporary oil deliveries and sales from Iran.[para. 6]

7. Tensions continued to rise in the Middle East: an Iranian Revolutionary Guard spokesman was killed in an attack, Houthi militants threatened a blockade of the Bab el-Mandeb Strait, and a strike on QatarEnergy facilities reduced the country’s LNG exports by 17%, resulting in around $20 billion in lost annual revenue. These events indicate growing risk and volatility in the region.[para. 7]

8. In technology news, Elon Musk revealed the ‘Terafab’ project via SpaceX and Tesla, which aims to reach an annual production capacity of 1 terawatt of AI computing power. Most of these AI chips (80%) will be destined for space applications, with the remainder for terrestrial use, marking a significant leap in AI infrastructure development.[para. 8]

9. Domestically, Chinese Commerce Minister Wang Wentao held a meeting with Apple CEO Tim Cook, while the National Development and Reform Commission summoned AP Moller-Maersk’s CEO. Other announced domestic initiatives include online registration trials for foreign lodgers outside of hotels, drafting of a new five-year artificial intelligence industry development plan, and a 250 billion yuan ($34.5 billion) fund to support consumer goods trade-ins.[para. 10][para. 11][para. 12][para. 13][para. 14]

10. In the corporate sector, U.S. regulators escalated their probe into Tesla’s Full Self-Driving ‘pure vision’ system, XPeng Inc. posted its first quarterly profit but forecast weak upcoming sales, Onewo Inc. suffered a nearly 40% year-on-year net profit plunge for 2025, and China Tourism Group Duty Free’s net profit fell by 16% to 3.6 billion yuan.[para. 15][para. 16][para. 17][para. 18]

11. On the international front, China’s Middle East envoy met with Iran’s ambassador to discuss the worsening regional situation, the U.S. and Japan unveiled a critical minerals action plan, and Pakistan and Afghanistan observed a stable ceasefire, encouraged by China to resume talks. Israeli Prime Minister Netanyahu denied dragging Trump into the Middle East conflict, expecting a quick resolution, while Ukraine held discussions with the U.S. on peace talks.[para. 19][para. 20][para. 21][para. 22][para. 23]