Shanghai is set to host a meeting this week where foreign business leaders, such as the heads of German car manufacturers BMW and Mercedes and chip giant Qualcomm, will meet with Chinese President Xi Jinping. The meeting aims to strengthen bonds between Chinese authorities and overseas companies in the midst of declining investments and U.S. tariffs directed at China.

This gathering follows the China Development Forum (CDF) where prominent participants like Apple, Pfizer, Mastercard, and Cargill engaged with Chinese commerce ministry officials to promote market openness and tackle economic uncertainties. The upcoming meeting with Xi and executives from Mercedes, BMW, and Qualcomm signals a proactive approach by China to address the economic challenges.

Recent data showing a significant drop in foreign direct investment in China has prompted an increase in dialogues between international executives and top Chinese officials to address concerns over supply chain diversification, economic slowdown, and regulatory crackdowns. With the looming threat of new U.S. tariffs on imported autos, Chinese partnerships are becoming crucial for German automakers like BMW and Mercedes to stay competitive in the market.