Chinese leader Xi Jinping to meet Joe Biden this week over economy fall

Due to the country’s slowing economy, foreign businesses have been retreating from China as quickly as they can.

“China is currently facing slower growth and needs to make some corrections,” says a representative for the Swiss industrial machinery manufacturer Oerlikon, which withdrew 250 million francs ($277 million; £227 million) from China last year.

“In 2022, we were one of the first companies to transparently communicate that we expect the economic slowdown in China to impact our business,” said a company spokesperson.

“Consequently, we began early to implement actions and measures to mitigate these effects.”

China remains a key market for the firm. It has close to 2,000 employees across the country, which accounts for more than a third of its sales.

Oerlikon noted that the Chinese economy was still expected to post growth of around 5% in the next few years, “which is among the highest in the world.”

Since the onset of the pandemic, businesses like Oerlikon have contended with the challenges of operating in what is the world’s biggest market.

All eyes will be on Xi Jinping and US President Joe Bien this week as they meet.

According to Mr. Marro of the EIU, businesses are cautiously hopeful about the planned meeting between Presidents Xi and Biden.

“Direct meetings between the two presidents have a stabilizing effect on bilateral ties.

” We’ve also seen a rush of US-China diplomatic contact in recent months, which has contributed to the sense that both sides are attempting to put a floor under the relationship,” he says.