FDI FTW

Beijing is undertaking a charm offensive to woo European multinational corporations (MNCs).

On Wednesday, executive vice premier Ding Xuexiang met with Oliver Blume – CEO of Volkswagen – in Beijing.

• That same day, Vice President Han Zheng met Swedish banking and industrial tycoon Jacob Wallenberg – who heads one of Europe’s most influential business empires.

Some context: Since August, central and local regulators have released a string of policies to improve the business environment for foreign companies.

Ding told Blume that China is open for business (People.cn):

• “We are committed to improving the business environment for MNCs…and welcome Volkswagen to increase investments in China.”

Han said much the same (MoFA):

• “China will continue to expand its [economic] openness and open up new avenues for economic and trade cooperation with Europe.”

Get smart: China's leaders are among the busiest people on the planet – taking time to meet with business leaders sends the message that they are serious about improving the operating environment for European companies.

Get smarter: EU policy on China is hardening by the day, as evidenced by its recent anti-subsidy investigation into Chinese-made electric vehicles and rumored probes into Chinese wind turbines and steel.

• It will take a lot more outreach by the likes of Ding, Han, and other leaders to reverse the trend of increasing European restrictions on trade and investment with China.