When Trump sparked a trade war 16 months ago, a debate erupted in Beijing over how to respond to the United States.

One view was made that the government should "tit for tat" to hurt American businesses in China. However, many people think that instead of punishing foreign companies, especially American and Chinese companies, they should treat them better to entice them to take sides in Beijing in the war.

Unwilling to be weak, Chinese President Xi Jinping responded to US President Donald Trump's tax blow with his own tariff barrier. However, Beijing still clearly shows a trend toward a non-confrontational approach through "captivating attacks", according to two sources familiar with the policy debate in China.

Not choosing to punish American businesses in China, Beijing tries to find ways to reassure and please them, promising to help them access the Chinese market more easily, creating a level playing field. and restricting the role of the state in daily economic activities.

"If China punishes American businesses, it will only help 'trade hawks' in Washington, who are trying to separate China from the rest of the world," a Chinese government official said. the name says. "China will definitely not fall into the trap."

Beijing's attempt to attract foreign investors is expected to reach new heights next week, when President Xi speaks at the China International Import Expo in Shanghai for the second year. consecutive.

According to experts, Xi is likely to repeat the "mantra" that the government has been uphold, that "China's door will only expand", and announce new policy initiatives. to help foreign traders and investors access the Chinese domestic market with 1.4 billion consumers.

The new promises will continue to lengthen the list of measures taken by Beijing to convince global investors that the world's second-largest economy is still ready to cooperate and open up to businesses.

China has pledged to move forward to completely eliminate foreign ownership limits in domestic financial institutions and auto companies. Beijing quickly approved Tesla's production of electric cars at its brand-new factory in Shanghai. The Chinese government has also launched a series of new regulations that promise fair treatment of foreign businesses.

Chinese Deputy Trade Minister Wang Shu Wen, a key member of Beijing's trade talks with Washington, said on October 29 that China would actively consider changing, even abolishing the laws. , which is considered unfair to foreign businesses, something Beijing hasn't done since negotiating to join the World Trade Organization (WTO) more than two decades ago.

According to Peter Quinter, a lawyer at law firm GrayRobinson, the United States, it is impossible to expect China to respond to investors' demands with ease.

"In China, the progress they have made in the economic system over the last 30 years is the miracle of the world," Quinter said. Having faith in China developing the same legal, political and economic system as the US is "an unrealistic expectation", he stressed.

With growing doubts about Beijing's claim that it will become the largest defender of global trade freedom in the world, it is hard for people to believe in the "open door" measures China is taking. raised.

The World Bank has acknowledged Beijing's efforts, bringing them up 14 places in the Business Advantage Index (EBDI) rankings earlier this month. Accordingly, China enacted 6 reforms to open the market from 2016 to 2018, but introduced 7 reforms this year alone and planned for 8 new reforms in 2020.

Beijing has also stepped up its support for foreign investors like Tesla. The government only took 168 working days to approve a license to help Tesla's Gigafactory in Shanghai test production, according to Xinhua.

Data from the United Nations Conference on Trade and Development meanwhile foreign direct investment (FDI) in China in the first half of 2019 increased by 4% from the previous year, to $ 73 billion. .

Wall Street maintains its interest in Beijing as major financial investors, from JPMorgan Chase to Blackrock, are discussing the possibility of expanding their presence in China.

Observers assess the market opening promises made by China as an important part of its strategy to protect its position in the global value chain.

China's "world factory" title has been eroded in recent years as domestic costs rise, even before the start of a trade war with the US, leading to a series of manufacturers. have to leave, looking for cheaper production facilities in other countries. South Korea's Samsung Group has also closed its last mobile phone manufacturing plant in China.

In an article published on the Global Times on October 28, former Chinese Deputy Trade Minister Wei Jianuo implies that China's opening is limited, even in the "free trade" pilot areas. ".

According to him, although free trade areas aim to lower market barriers and improve the protection of intellectual property assets for foreign companies, they will not accept "economic freedom." "completely or pursue" neoclassicalism from the West. " All of China's moves to open the door must support its central goal of "building a socialist market economy".

Beijing has also made it clear that it will not abandon its unique economic model or relax restrictions in areas it deems dangerous. Many of the recent liberalization measures China has adopted are like "one-way streets", designed to encourage capital inflows but to strictly control the outflows.

The Government has paid great attention to the important role of foreign investment in economic growth over the past four decades. They bring not only money but also access to modern technology.

Statistics released by Beijing show that foreign investment in China between 1978 and 2018 reached US $ 2.1 trillion, helping China's economy grow into a global power.

Therefore, gaining the goodwill of foreign investors has always been an important factor for China's economic future. But according to Jacob Parker, vice president of the US-China Business Council, in fact, this goal is in trouble as many American companies are preparing for the scenario of a long-standing confrontation between Washington and Beijing.

Differences in ideas and values, as well as geopolitical competition and security concerns, are all overshadowing American businesses in China. China has recently used economic issues many times to prevail in political disputes.

The boycott of Chinese consumers has pushed top Korean retailer Lotte out of the Chinese market after Seoul agreed to allow the United States to deploy a terminal high-altitude missile defense system (THAAD) on. territory.

Most recently, the National Basketball Association (NBA) 's plan to enter the Chinese market met with resistance after the Houston Rockets' general manager tweeted a message of support for Hong Kong protesters, leading to wave of protest in China. A series of NBA basketball broadcasts were cut.

Trey McArver, co-chairman of Beijing-based market research firm Trivium China, said the incident reflected Beijing's "difficulty in attracting foreign businesses to its side".

"Although they open up more fields, at the same time, they are more aggressive than foreign companies that do not follow government guidelines," he commented. "Actions speak louder than words and I think it is especially true in the case of China, where the law is not always the last word on how things are regulated."