At Boao forum, China reassures foreign investors as Iran, tariff wars rattle global trade

BOAO, Hainan – China’s top legislator, Mr Zhao Leji, on March 26 sought to reassure foreign investors by casting Beijing as a reliable and steady partner as the Iran conflict has thrown the global economy into uncertainty.

Other Chinese leaders have also called for more openness in trade and economic cooperation at a time when the US under President Donald Trump has waged a tariff war on many countries, including China.

Speaking at the Boao Forum for Asia, Mr Zhao, who is the chairman of the National People’s Congress and China’s third-ranking official, also called for better regional cooperation both economically and in the area of security.

On China as a destination for investments, he said foreign investors could gain a competitive edge by investing in the country, and that Beijing remains committed to “all-around law-based governance” and will “continue to improve the business environment”.

“China will continue to expand domestic demand and share the dividends of our super-sized market of 1.4 billion people and the world’s largest and fastest-growing middle-income group,” he said, adding that there is enormous potential for investment and consumption.

China’s economy has grown by an average of 5.4 per cent year on year over the last five years, contributing around 30 per cent of the global growth, and remains “an important engine driving the world’s economy”, said Mr Zhao.

“It is China’s unwavering goal to grow its economy and improve people’s livelihoods and, in that process, to promote the common development of all countries,” he added.

His remarks at the forum’s opening plenary come as disruptions to shipping routes and rising risks to global trade flows, linked to the Iran war, loom over the international conference that China is hosting from March 24 to 27.

The Boao Forum, often dubbed Asia’s answer to Davos, is a regional platform for economic cooperation founded in 2001, the same year that China joined the World Trade Organisation.

About 2,000 participants from 60 countries, representing government, business and academia, have gathered at the seaside town of Boao, facing the South China Sea, in the island province of Hainan.

Mr Zhao called upon nations to respect sovereignty and non-interference, saying that the “outdated mindset of bloc-based confrontation” is resurfacing.

“In today’s world, geopolitical conflicts and regional wars keep emerging. Unilateralism and protectionism become rampant. Hegemonism and power politics are posing greater threats,” he said, without naming any country.

Since Feb 28, Mr Trump has launched an extensive military campaign against Iran and is now seeking to reopen the Strait of Hormuz, a key artery for global energy supplies, after disruptions sent oil prices surging globally.

Mr Zhao’s speech builds on a recent drumbeat of similar messaging from senior Chinese leaders as Beijing steps up efforts to promote economic openness and stability to woo foreign investors, as well as urge global commitment to open up markets.

Foreign direct investment in China was down 9.5 per cent in 2025 compared with 2024, as the world’s second-largest economy struggles to shake off deflationary pressures amid a prolonged property crisis, sluggish domestic demand, weak job market and shrinking population.

Chinese Premier Li Qiang, at the China Development Forum in Beijing, on March 22 had called for countries to open up and drive new market growth, warning against rising protectionism and “power politics” running rampant, in what many took as a veiled reference to the US.

Foreign Minister Wang Yi, at the recently concluded national parliamentary and other political meetings known as the Two Sessions, had characterised the Chinese market as a “gym” for foreign firms where they can build strength and enhance competitiveness.

At the Two Sessions, Chinese leaders said sustaining economic growth and boosting domestic demand would be key priorities for the year ahead.

Beijing’s emphasis on economic openness and cooperation is in contrast to Mr Trump’s tariff war, which is meant to protect US industries and jobs.

Mr Trump was slated to visit China in April largely to resolve trade conflicts between the two sides, but the trip has been postponed to May because of the Iran war.

He announced on March 26 in a Truth Social post that he will visit Beijing from May 14 to 15 to meet Chinese President Xi Jinping. It would be his first trip to China in eight years.

In his post, Mr Trump said he would host Mr Xi at a reciprocal visit in Washington later in 2026. Beijing has not confirmed Mr Trump’s visit dates nor Mr Xi’s travel plans, consistent with the usual Chinese diplomatic practice of confirming visits only a few days in advance.

In his speech, Mr Zhao called for greater regional cooperation, saying that Asian countries should leverage their comparative strengths, remove barriers, advance regional integration and jointly keep industrial and supply chains stable and smooth to provide greater certainty and positive energy for global growth.

Having been through the scourge of conflicts and wars, people in Asia deeply cherish peace and stability, he said.

“We Asian people have the proud tradition of fighting colonialism, imperialism and hegemonism. We all value independence, self-reliance and peaceful coexistence,” said Mr Zhao, adding that it is essential to uphold true multilateralism and safeguard the rules-based international order.

Mr Zhao said Asia should work towards an “Asian security model”, a concept China has promoted for years and reiterated at a key neighbourhood diplomacy conference in 2025, though it remains loosely defined.

Mr George Chen, partner for the Greater China practice at Washington-based advisory firm The Asia Group, told The Straits Times that the similar messaging from the country’s top leaders is Beijing’s way of signalling that it prioritises safety and stability and wants to convince its allies and other nations that there should be a shared goal for regional stability and economic development.

“The hidden message is that America is the troublemaker, while China, especially many countries in Asia, are peace seekers,” said Mr Chen, who is based in Hong Kong.

“China wants to seize the moment to make it look more like a responsible world leader which other countries can count on, while the Trump administration makes many other countries uneasy and uncertain.”

Among the attendees at Boao is Singapore Prime Minister Lawrence Wong, who in his speech said China will play a critical role in shaping a more resilient global order, given its growing economic weight and capabilities.

PM Wong said China is also set to further drive growth in the region, given its fresh emphasis on domestic consumption under the recently announced 15th Five-Year Plan.

South Korean Prime Minister Kim Min-seok also delivered a speech, highlighting innovation, institution and interconnection as three key priorities for countries in a time of global uncertainty.

He delivered his remarks via a video address after cancelling his trip to Boao earlier to oversee an emergency economic task force amid the Iran conflict.

“South Korea and China are like ships sailing together in the same sea, heading in the same direction,” he said, adding that the spirit of sharing the same boat and helping each other is a value that applies across Asia.