China's Xi promises pro-business changes

Chinese President Xi Jinping addressed Amazon.com founder Jeff Bezos, billionaire investor Warren Buffett and other top American and Chinese business leaders Wednesday, vowing that his country would work to remove barriers to foreign investment and improve intellectual property protections.

Apple CEO Tim Cook, Microsoft CEO Satya Nadella and Jack Ma of Chinese e-commerce giant Alibaba also were among the 30 executives who attended a closed-door discussion moderated by former U.S. Treasury Secretary Henry Paulson before Xi's address.

Though he acknowledged difficulties as China shifts ite's economy form one driven by explorts to one driven by a growing middle class, Xi told the group China's economy will maintain a "steady medium and high spped of growth for a long time."

"Without reform, there will be no driving force,” Xi said through an interpreter, “without opening up, there will be no progress.”

China will "stand firm" to protect intellectual property rights, he added.

Xi attributed the Chinese economy's recent slowdown to three factors — world economic problems, proactive Chinese efforts at regulation and "protracted structural problems" in China.

A big item of concern for the American CEOs is a treaty that would provide a framework for broader investment in the economy of each nation.

Xi said a key part of China's reforms would be to reduce the scope of the current "negative list" of industries in which foreigners could not invest. He added: "Our positive list will be bigger, a longer list. We will continue to build an open and law-based environment."

Xi's comments on foreign investment were designed to please U.S. business. China has repeatedly pledged to loosen restrictions on foreign investment as it tries to improve inefficient state-owned firms and adopt market-friendly policies to stave off slowing growth, but foreign business groups say that so far action has not kept pace with promises.

"We are working to create a new open economic system, push forward reform of foreign investment management and greatly reduce the restrictions on foreign investment," said Xi.

All of the American CEOs participating in the forum, organized by the Paulson Institute, signed a letter to Xi and U.S. President Barack Obama urging them to support such a treaty, and they heard encouraging words from Xi on the topic Wednesday.

An agreement with China could open up more of that nation's massive market to American companies, provide clearer rules for Chinese investment in the U.S., and create jobs in both countries, supporters say.

Representatives from Twitter, Facebook and Google were notably missing from the event. China blocks those companies' websites.

Earlier Wednesday, it was announced that Chinese companies have agreed to buy 300 jets from Boeing.

Xi arrived in Seattle on Tuesday for a three-day visit before he heads to the White House later this week.

In the speech Tuesday, Xi told dignitaries that reaching agreements to ensure robust international trade was a priority.

Xi also said China and the U.S. could work together to address cybercrimes, a problem that has sparked mutual tension. American officials say hacking attacks originating from China are approaching epidemic levels.

Samm Sacks, an analyst at U.S.-based consulting firm Eurasia Group, said that American business leaders remain chiefly concerned with cyber theft targeting corporate secrets, though any renewed cyber crime dialogue with Washington likely would be limited in scope and not deal with corporate espionage.

“Overall, I do not see any meaningful progress on cyber issues or a shift in Beijing's approach toward U.S. tech companies in China,” Sacks said.

Wire services