China’s central bank seeks to attract major Western companies as economic challenges grow

China will open up its financial industry and make its business climate more welcoming to international firms, the country’s central bank governor told a group of top Western corporations, continuing Beijing’s attempts to attract outside money as economic headwinds rise.

The governor the People’s Bank of China, Pan Gongsheng, and head of the country’s overseas exchange regulator, held a symposium with officials from foreign firms including JP Morgan, Tesla (TSLA), HSBC (HSBC), Deutsche Bank (DB), BNP Paribas, Japan’s MFUG Bank, and German chemical, according to a statement released on the website of the People’s Bank of China (PBOC) and the State Administration of Foreign Exchange (SAFEC).

According to the announcement, the symposium aimed to “boost financial assistance to help stabilize international trade and foreign investment” and enhance the “investment climate” for foreign companies.

Foreign firms and investors are worried about mounting dangers in the world’s second-biggest economy, such as a deepening downturn typified by poor domestic demand and a housing crisis, Beijing’s intention to prioritize national security above economic development, and deteriorating ties between China and many Western countries.

According to figures provided by China’s commerce ministry, foreign direct investment into China declined 5.1% in the first eight months of this year compared to the same period last year. A different indicator for foreign investment revealed a bleak picture.

“40% of respondents were redirecting or preparing to redirect investment previously planned for China to other locations, primarily in Southeast Asia. This is compared to 34% of respondents last year who planned to divert investment,” according to a business climate study issued by the American Chamber of Commerce in Shanghai.

“Direct investment liabilities plummeted 87% from April to June to $4.9 billion. Since records began in 1998, this was the lowest number in any quarter,” (SAFEC) data showed.

The chamber said in a statement that the percentage of firms positive about the five-year business outlook was 52%, the lowest in the survey’s history.