All investor eyes on Xi in Europe

Chinese President Xi Jinping’s two-day state visit to France starting Monday, coupled with stops in Serbia and Hungary, is garnering significant attention from global investors amid escalating trade tensions between China and the European Union (EU).

With ongoing EU probes into alleged market-distorting practices by Beijing and its electric vehicle operations, and a parallel Chinese anti-dumping investigation targeting European liquor and agricultural products, investors are closely monitoring Xi’s trip, with many hoping for signs of de-escalation and cooperation.

The economic stakes involved are substantial. China and the EU are both key global economic powerhouses, with extensive bilateral trade and investment ties.

Any disruptions or exacerbations to their trade relations will reverberate across global markets, impacting various industries and investor portfolios.

As such, global investors are eagerly awaiting Xi’s visit, as positive developments could potentially mitigate market uncertainties and restore confidence. Negative developments could have the opposite effects.

A reduction in trade barriers and the resolution of disputes can facilitate smoother trade flows, thereby enhancing market predictability and reducing investment risks.

For example, European investors eyeing the Chinese market may find increased clarity and certainty in their business operations following a potential resolution of trade tensions.

Likewise, Chinese investors seeking opportunities in Europe may encounter fewer regulatory hurdles and trade barriers, promoting a conducive trade and investment environment.

To be sure, Xi’s diplomatic tour holds significance beyond trade considerations, as it underscores China’s broader strategic