China open to foreign companies: Xi Jinping

Chinese President Xi Jinping has sought to reassure US business leaders, in a wide-ranging speech covering China's economic reforms and cyber-crime.

Speaking in Seattle, Xi said foreign firms are welcome in China, and that Beijing would not manipulate its currency to boost exports.

He also denied Beijing engages in hacking but said that China would co-operate with Washington on the issue.

Correspondents say both cyber security and reforms have strained relations.

The BBC's US correspondent James Cook says both issues are likely to come up when Xi meets his US counterpart Barack Obama on Friday.

Xi, who is on his first state visit to the US, said ensuring robust international trade was a top priority.

"China will never close its open door to the outside world," Xi said in Chinese.

In response to US allegations that China-linked hackers have been behind a massive data security breach of government databases as well as attacks on private firm, Xi said Beijing was not involved.

He also said cyber-theft was a crime and should be punished.

"The Chinese government will not in whatever form engage in commercial thefts or encourage or support such attempts by anyone," Xi said.

Ahead of his visit, business leaders re-iterated the difficulties US firms have operating in China and the deteriorating outlook for the economy.

China's economy, which has grown rapidly in recent years, is beginning to slow, causing global concern about a fall in demand for global goods.

Recent dramatic losses on the Chinese stock markets, despite government interventions, have led to questions over how well the government is managing the slowdown.

Xi will be hosted at the White House for a state dinner on 25 September, and is due to give a speech to the UN General Assembly in New York on 28 September.