Global CEOs Converge on Beijing Amid Shifting U.S.-China Economic Landscape
More than 80 top global executives, including leaders from Apple and Eli Lilly, traveled to Beijing for the 2026 China Development Forum. This high-level gathering, held at the Diaoyutai State Guesthouse, underscores a renewed corporate push to engage with China’s vast consumer market after years of pandemic-related disruption, slower economic growth, and persistent U.S.-China trade tensions.
Apple’s Cook Praises China’s Tech Progress Amid Sales Recovery
Apple CEO Tim Cook, who stood alongside Siemens CEO Roland Busch at the opening ceremony, delivered a keynote following Chinese Premier Li Qiang. Cook highlighted the “extraordinary” pace of technological advancement in China, specifically citing factory automation. “We are proud to be part of that progress, and we’re committed to working alongside our supplier partners to push it even further,” he stated, noting that over 90% of Apple’s production in China is powered by clean energy.
Cook’s appearance follows a significant turnaround for Apple in the critical Chinese market. According to data from Counterpoint Research, Apple’s iPhone sales in China rose 23% year-on-year in the first nine weeks of 2026, driven by the iPhone 17 launch. This performance notably outpaced a 4% decline in China’s overall smartphone market. China accounted for nearly 18% of Apple’s revenue in the December quarter. Prior to the forum, Cook visited Chengdu, a key market where Apple faces regulatory pressure regarding App Store commission rates.
Pharmaceutical Giant Eli Lilly Bets on China’s Health Market
Pharmaceutical company Eli Lilly, represented by CEO David A. Ricks, announced a major $3 billion investment plan for China over the next decade. This commitment comes despite China representing just under 3% of the company’s global revenue last year. Ricks told CNBC’s Eunice Yoon that he sees “significant” potential for the company’s GLP-1 obesity drugs in China, contingent on improved healthcare reimbursement systems. A positive signal emerged this year when Eli Lilly’s Mounjaro was added to China’s state-run health insurance reimbursement list.
Political Context: Truce, Talks, and Strategic Shifts
The executives’ trip occurs against a backdrop of tentative economic diplomacy. A U.S.-China trade truce reached in October reduced the effective tariff rate to under 50% for one year, though its extension remains uncertain. A planned visit to Beijing by U.S. President Donald Trump for trade talks was delayed by several weeks due to the Iran war. While the White House encourages reshoring of manufacturing, U.S. companies are proceeding with investment plans in China.
Premier Li Qiang used his forum address to signal incremental opening. He promised easier access for foreign firms in the services sector and committed to purchasing more foreign healthcare and digital technology products. He also pushed back against the narrative that state subsidies fuel China’s tech rise, arguing that many exports from foreign-invested factories return to home markets, generating profits for overseas investors. This follows China’s record 2025 trade surplus and its new 15th Five-Year Plan, which emphasizes tech self-sufficiency and boosting domestic demand through measures like trade-in subsidies.
Volkswagen Voices Industry Challenges Amid Market Pressure
Not all perspectives were represented at the forum. Economist Stephen Roach of Yale Law School, a 25-year veteran attendee, reported he was not invited this year. He noted his past critiques focused on the need for stronger consumer-led rebalancing—a goal now echoed in the 15th Five-Year Plan, though he feels accompanying policies remain inadequate.
Among those present, Volkswagen CEO Oliver Blume made a notable impact, visiting Beijing twice in four weeks, including with German Chancellor Friedrich Merz. Blume stated that as “China’s largest foreign investor,” Volkswagen relies on stable conditions and welcomes efforts to boost domestic demand and ensure fair competition. He highlighted the automaker’s challenges: “volatile supply chains, an imbalance between supply and demand, and high price pressure in the market.” After a three-year localization push, VW is launching 20 new models in China in 2026 to counter an 8% sales drop in 2025.
The China Development Forum thus served as a barometer for corporate sentiment, revealing a complex mix of cautious optimism about market access and persistent anxiety over geopolitical friction, domestic competition, and structural economic shifts.
