Boao Forum of Asia to open
The Boao Forum for Asia 2024 begins today.
The Boao Forum has been held annually in Boao, on the Chinese island of Hainan, since its inception in 2002. While the forum is frequently touted by Beijing as Asia’s answer to the World Economic Forum in Davos, Switzerland, it has lost most of its global appeal in recent years. Concurrently with Boao, China’s Commerce Ministry also hosts “Invest China” in Beijing, an event that similarly aims to attract foreign investors.
Unlike Davos, in which business and government leaders discuss global issues, Boao has always centered around China. Last year’s forum was opened by then freshly-appointed Premier Li Qiang, who announced “China is open for business”. However, 2023 turned out to be China’s worst year for foreign direct investment (FDI) in 30 years. In late 2023, FDI even turned negative, as foreign firms rushed to withdraw their capital from China.
Much of the hosts’ attention will likely be on persuading foreign firms to reinvest into China. This year’s Boao agenda includes deepening financial cooperation across Asia and fostering foreign investment, as well the Chinese government’s more recent focus points of new energy vehicles, China’s Belt and Road Initiative and AI governance.
However, given that last year’s forum was already attended by mostly Chinese business leaders, the forum is unlikely to make a global impact. Despite Beijing’s ongoing insistence on being open for business, Chinese President Xi Jinping’s heavy focus on national security and protectionism means that China will remain too risky for investment by major Western companies in 2024. Instead, Boao will likely shift its attention to friendlier markets, including Russia and developing countries.
