Pandas, Ping-Pong and Profit: Chinese Leader Seduces American CEOs

The streets outside the San Francisco hotel where Chinese leader Xi Jinping addressed a crowd of American businessmen on Wednesday evening were chaotic, with echoes of police sirens and the chants of protesters. A woman had tied herself to a pole in front of the hotel, 7 meters high in the air, and shouted “Free Tibet!” while cold rain fell.

But in the ballroom of the Hyatt Regency, the atmosphere was warm and friendly. More than 300 executives and officials listened intently as Mr. Xi — the leader of a country often seen as America’s greatest rival — spoke for more than half an hour about an enduring friendship between China and the United States that could not be compromised. due to the recent unrest.

Mr. Xi talked about pandas. He talked about ping pong. He spoke about Americans and Chinese who worked together against the Japanese during World War II. He only briefly and tangentially addressed the tensions that have rocked U.S.-China relations over the past year, likening the relationship to a giant ship trying to navigate storms.

“The most important question for us is: are we adversaries or partners?” Mr. Xi asked. According to him, seeing the other side as a competitor would only lead to ill-informed policies and undesirable results. “China is ready to be a partner and friend of the United States.”

Among those who paid thousands of dollars to attend the dinner and hear Mr. Xi’s message were Tim Cook, the CEO of Apple, Larry Fink of BlackRock, and Jerry Brown, the former governor of California. They mingled with executives from Boeing, Pfizer, Nike and FedEx. Elon Musk stopped by during cocktail hour to greet Mr. Xi, but left before dinner began.

Mr. Xi’s tone was welcomed by many of the attendees, who believe greater engagement between the United States and China will improve the lives of people in both countries, reduce misunderstandings and possibly even deter war.

“I think it’s important for Americans and Chinese to meet in person again,” said John L. Holden, China director for the consulting firm McLarty Associates, as he stood in line outside the hotel. “This is not a silver bullet, but it is something that can open up possibilities that wouldn’t otherwise exist.”

Mr. Xi’s positive tone and the enthusiasm of some event attendees were in sharp contrast to much of the recent talk in the United States about China, which has focused on potential economic and security threats.

Republican lawmakers have criticized President Biden for his “zombie engagement” with China. Recent polls have shown that Americans are more concerned about the rise of China than at any time since the end of the Cold War.

At a news conference Wednesday, Mr. Biden celebrated a successful meeting with Mr. Xi earlier that day that had resulted in agreements to combat drug trafficking and improve communications between the countries’ militaries. But asked whether he still thought Mr. Xi was a dictator, Mr. Biden replied: “Well, look, he is.”

China has been an attractive market for American companies for decades because of its size and growth, but the slowing economy and the country’s increasingly authoritarian tendencies have dampened executives’ enthusiasm toward China.

Foreign companies say the Chinese government has slowly pushed them out in favor of local competitors. While some believe that China’s leaders are shocked by the recent decline in foreign investment in China and are motivated to restore ties, executives are still concerned about China’s recent crackdown on foreign business and strict regulations, including the way companies use Chinese data.

For companies manufacturing in China, the supply chain disruptions during the pandemic also sent a strong message that companies should not rely on a single country for their goods, and set in motion a trend toward “risk reduction.” Yet some American companies are still making a lot of money in China.

“I don’t think anyone thinks that one dinner, or one visit, or one conference is going to reverse all the animosity that has built up between the U.S. and China,” said Michael Hart, president of the U.S. Chamber of Commerce. China, said in an interview on Tuesday. But he added that if Mr. Xi were to take a friendlier stance toward the United States, “that will hopefully mean a slightly friendlier business environment toward American business in China.”

In the ballroom, 34 tables were covered with roses and orchids. They were numbered from 1 to 39, skipping each number with a four, which sounds like death in Chinese, as well as the unfortunate number 13. Guests could choose between a Black Angus steak with coffee crust and a vegetable curry with jasmine rice and roasted pistachios.

Gina Raimondo, the US Commerce Secretary who spoke at the dinner, thanked Mr Xi for a productive meeting earlier that day where Chinese officials met with Mr Biden and his deputies.

“We all know we have differences,” Ms. Raimondo said at the dinner. “I’m not going to do anything else. That said, President Biden has made it very clear that while we compete with China and other countries, we do not seek conflict and confrontation.”

“We want robust trade with China,” Ms. Raimondo said. She said many of the attendees are still very interested in doing business in China. “I know that because many of you come to see me and tell me,” she said, laughing.

Mr. Xi, who has overseen China’s military modernization and increasingly robust power projection abroad, emphasized China’s commitment to a rules-based international system, its efforts to eradicate poverty, and its peaceful nature. Mr. Xi also touted his personal connections to the United States, including time he spent in Iowa in the 1980s and an old photo he said he keeps of himself in front of the Golden Gate Bridge.

“China has no intention of challenging or dethroning the United States,” he said.

Stephen A. Orlins, the chairman of the National Committee on United States-China Relations, one of the groups that sponsored the event, said he was present when the committee hosted previous Chinese leaders in the United States – Deng Xiaoping, Jiang Zemin and Hu Jintao – and that they had all projected a friendly attitude. He recalled that Mr Deng famously wore a cowboy hat during a visit to the US in 1979.

“When they stand in front of an American, they tend to be more constructive and pro-American. It’s just part of what’s happening,” Mr Orlins said. “They are not going to come to an event like this and stick their thumb in the eyes of us as sponsors and the public.”

Mr. Orlins’ group and the event’s other organizer, the US-China Business Council, went through a logistics Olympics to set up the dinner. Due to security concerns, organizers were unable to announce the location until the day before, and guests received an invitation to an event with an unnamed “senior Chinese leader.”

Mr. Orlins said his group knew that Mr. Xi had attended every meeting of the international grouping known as the Asia-Pacific Economic Cooperation, and concluded that he would do the same if the meeting took place in San Francisco this week. That’s why they extended an invitation to receive Mr. Xi nine months ago.

Three or four weeks ago, Mr. Orlin said he had been told that Mr. Xi’s presence was still uncertain, but that he should begin preparations.

The Chinese Protocol Bureau peered at each participant; they were extremely sensitive about safety, especially since someone had driven a sedan into the Chinese consulate in San Francisco a few weeks earlier. The White House insisted that the dinner would take place after Mr. Biden’s meeting with Mr. Xi on Wednesday, so as not to overshadow that event.

The groups had to hire a large amount of security and personnel and even fly in translation equipment, as local supplies had already been requisitioned by the Asia-Pacific Conference. Even though many more people wanted to attend the event than capacity, Mr Orlin said the $40,000 the groups charged for some tables would only partially recoup the cost of the event.

Mr Orlins said the Chinese had prepared three versions of a speech Mr Xi could give that evening. After Wednesday’s events with Mr. Biden, Mr. Xi had chosen the friendliest.