China Development Forum welcomes U.S. execs revamping market push

BEIJING — As corporate giants manage US-China tensions, more than 80 global executives Apple with Eli Lilly, He traveled to Beijing this weekend for the annual state-organized China Development Forum.

The executives’ remarks reflected renewed interest in capturing Chinese consumers after years of uncertainty, slowing growth and U.S. trade tensions due to the Covid-19 pandemic.

Following a rebound in Apple iPhone sales in China, the company’s CEO Tim Cook took to the stage behind Chinese Premier Li Qiang on Sunday and praised the “remarkable” pace of technological progress in the country, such as factory automation.

He said: “We are proud to be part of this progress and are committed to working with our supplier partners to take it even further.” He added that more than 90% of Apple’s production in China is powered by clean energy.

Apple still manufactures most of its iPhones in China; 18% of Apple’s December quarter revenue. Thanks to the launch of the iPhone 17, Apple smartphone sales rose 23% year-on-year in the first nine weeks of the year, countering a 4% decline in China’s overall smartphone market, according to Counterpoint Research.

On his way to Beijing, Cook also visited Chengdu, China; because Apple was under pressure to reduce Chinese App Store fees.

Attendees included more than 30 executives from U.S. companies, including McDonald’s, Coach’s parent company Tapestry and Mastercard, as well as representatives from British, South Korean and German companies, according to the official delegate list seen by CNBC.

Their visits to Beijing came after the United States and China reached a trade truce in October that reduced the effective tariff to below 50% for a year. It remains unclear whether the two countries will be able to extend the ceasefire and whether Beijing will allow more critically needed rare earths to leave the country.

US President Donald Trump was scheduled to visit Beijing for trade talks later this month, but those plans have been postponed for at least a few weeks due to the Iran war.

U.S. companies have advanced plans to invest in China as the White House tries to encourage more of that spending to come home.

Pharmaceutical giant Eli Lilly announced in March that it plans to: 3 billion dollars investment in China in the next ten years. The company reported that just under 3% of income It came from China last year.

CEO David A. Ricks told CNBC’s Eunice Yoon that he sees “significant” potential for the company’s GLP-1 obesity drug in China if there are better reimbursement systems.

Beijing has made incremental improvements in foreign access.

Eli Lilly’s Mounjaro weight loss drug added to China’s drug list refund list Covered by state-run health insurance this year.

On Sunday, Chinese Premier Li said Beijing would make it easier for foreign businesses to access the country’s service sector. He also added that China will purchase more healthcare and digital technology products from abroad.

He also rejected the idea that government subsidies are driving China’s technological development, noting that the country has never sought a trade surplus. Li stated that many products produced by foreign companies in China are exported to their domestic markets, accruing profits to investors.

China reports a record trade surplus in 2025. This year, China began its 15th five-year development plan, focusing on increasing domestic demand as well as self-sufficiency in technology. Measures to support consumption focused on exchange subsidies and gradual increases in social welfare.

But the high-level China Development Forum did not reflect all views. Stephen Roach, an economist and senior fellow at Yale Law School, said he was not invited this year after attending the event for 25 years.

“My focus on consumer-led rebalancing has always been presented as constructive criticism,” he told CNBC via email. “Ironically, this is something they finally adopted in the 15th five-year plan, albeit with inadequate policies.”

But the jobs of the managers still invited are at risk. volkswagen CEO Oliver Blume has now visited Beijing twice in just four weeks. In late February, he accompanied German Chancellor Friedrich Merz on an official visit.

“Our long-standing partnership provides an opportunity to clearly address challenges such as unstable supply chains, the imbalance between supply and demand and high price pressure in the market, also at the China Development Forum,” Blume said in a statement distributed to the media. he said.

“As China’s largest foreign investor, we are confident in stable framework conditions,” he said. “We therefore welcome measures aimed at sustainably improving domestic demand and fair competition, as well as ensuring the stability of supply chains.”

“This year is going to be very important,” Blume told CNBC’s Eunice Yoon on the sidelines of Sunday’s forum.

After a three-year effort to develop local manufacturing and technology capabilities, Volkswagen will launch 20 new models in China this year. The automaker gave a report Last year, there was an 8% decline in passenger car sales in China.