China is making efforts to highlight the country’s business opportunities to major American corporations like Apple (AAPL), Pfizer (PFE), Mastercard (MA), and Cargill to win back their trust amid the escalating U.S.-China trade war. China’s Vice Premier He Lifeng met with the chief executives of foreign companies during the China Development Forum held in Beijing on Sunday.
Importantly, the China Council for the Promotion of International Trade urged iPhone maker Apple to deepen its supply-chain relations with the country. In the wake of the rising trade tariffs, Apple has committed to investing over $500 billion in the U.S. to strengthen its manufacturing capabilities and lower its dependence on China.
China Anxious Amid Intense Trade Tensions
The leaders of the second-largest economy in the world are concerned about the shifting investment landscape away from China as the U.S. encourages domestic manufacturing and imposes higher taxes on imports. China’s He also met with the executives of other American companies, including Eli Lilly (LLY), Medtronic (MDT), and Corning (GLW), to discuss business potential with the nation.
He described the Chinese economy as being “highly resilient” and “full of vitality” while speaking with business leaders. A slew of executives from foreign countries are visiting Beijing for the business forum, with some even expected to meet President Xi Jinping on Friday. Additionally, Premier Li Qiang urged countries to open their markets to avert “rising instability and uncertainty,” while promising to implement more favorable macroeconomic policies.
The Trump administration imposed 20% tariffs on all imports of goods from China, since the latter failed to stop the export of fentanyl into the U.S. China is now seeking the support of foreign companies to boost its economic growth and stability. Increased investments from American companies could bolster the domestic labor market and provide the necessary economic boost, while also ensuring that trade relations between the two nations remain strong.
Is Apple a Good Stock to Buy?
Wall Street remains divided in its views on the trillion-dollar company. On TipRanks, AAPL stock has a Moderate Buy consensus rating based on 17 Buys, 11 Holds, and four Sell ratings. Also, the average Apple price target of $249.88 implies 14.5% upside potential from current levels. In the past year, AAPL stock has gained 28.4%.
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