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Chinese Premier warns of "rising instabilities" at key business conference

At a Beijing business forum on Sunday, Chinese Premier Li Qiang called for countries to expand their markets in order to combat the "rising uncertainty and instability" as China prepares to face further U.S. trade tariffs.

State media reported that Li said, "In an increasingly fragmented and uncertain world, with rising instabilities and uncertainties, it's more important for countries to open their markets and enterprise... to resist challenges and risks." He was speaking to dozens of visiting U.S. Republican senator Steve Daines and dozens other foreign CEOs at the China Development Forum.

Sources previously said that foreign CEOs, including Tim Cook from Apple, Cristiano Amon from Qualcomm, Pascal Soriot from AstraZeneca, and Amin Nasser, of Saudi Aramco, will attend the China Development Forum between Sunday and Monday. Some are expected to meet with President Xi Jinping Friday.

Beijing wants to attract foreign investments at a time when geopolitical tensions are high, and policymakers want to boost domestic consumption in order to counteract the new U.S. Tariffs.

Li, according to a Xinhua article, said that "we will combine policy intensification and stimulating market forces", without elaborating specific stimuli measures.

"We will continue to intensify counter-cyclical adjustment and introduce new incremental policy when needed."

Li said he hoped that entrepreneurs would be "strong defenders and proponents of globalisation... and" resist unilateralism, and protectionism.

According to one source, there were fewer American CEOs at the summit this year than last due to increased geopolitical tensions in Washington and Beijing. According to the agenda, a closed-door meeting with Li and foreign executives will not be held for the second consecutive year.

Senator Daines, who is a staunch supporter of U.S. president Donald Trump, met Vice Premier He Lifeng on Saturday in Beijing and Li on Sunday. This was the first trip to China for a U.S. political leader since Trump assumed office in January.

Trump announced on April 2, a new wave of "reciprocal tariffs" targeting countries that have trade barriers against U.S. goods, including China.

By April 1, the Trump administration will have completed a review on Beijing's compliance to the "phase one", U.S. China trade agreement that was signed during his first term.

Trump imposed tariffs of 20% on Chinese exports in this month. China responded with additional duties on American agriculture products.

Chinese Commerce Ministry officials met at least a dozen executives of foreign companies in recent weeks. These included Brazilian mining giant Vale, Airbus. PepsiCo. Procter & Gamble. Honeywell. and Swire.

Official data revealed that foreign direct investments last year fell to their lowest levels since 2008.

Last week, China's State Council announced an action plan for boosting foreign investment. The plan included measures like further opening in China's healthcare and telecommunications sectors as well as smoothing data transfers across borders.

China's annual parliamentary session ended this month. The government pledged to "vigorously" boost consumption in an economic environment that is facing a sluggish demand from consumers and a prolonged property crisis.

Analysts have suggested that policymakers should launch more stimulus if Beijing finds itself in a trade war spiraling out of control with Washington. (Reporting and editing by Jamie Freed; Reporting by Laurie Chen)

(source: Reuters)