2023-05-15 05:47:44
Multinationals expressed optimism and confidence in China’s long-term economic growth potential, despite growing external uncertainties such as potential decoupling risks and supply chain disruptions.
They have also redoubled their efforts to expand their presence in the world’s second largest economy through new investments and localized operations.
Economists and industry insiders said any intention to decouple from China was clearly unworkable and contrary to historical trends, adding that attempts to do so would hamper the recovery of the inflation-stricken global economy. high and downside risks.
They also highlighted China’s economic resilience and its central position in global industrial and supply chains.
Their comments come as Bloomberg quoted unnamed sources as saying US President Joe Biden intended to sign an executive order restricting investment by US companies in key sectors of China’s economy, around the time the G7 summit, which is expected to begin Friday in Japan.
Hideki Ozawa, Canon China President and CEO, said, “The anti-globalization trend has not affected Canon’s business development in China or Canon’s relationship with our Chinese partners. On the contrary, the opening of China remains an important source of new opportunities for Canon. »
Mr. Ozawa said that with the modernization of industries and consumption in China, domestic demand for high-end manufacturing and high-tech services from overseas is increasing rapidly, and Canon will seize this opportunity and continue to expand and deepen cooperation with its Chinese partners.
“The Chinese economy is very resilient, and China is Canon’s most important market. Canon has confidence in the Chinese market. […] We will establish a more complete supply chain, from research and development (R&D) to production and sales in China, as well as invest more here,” he added.
Frank Meng, Qualcomm’s president of China, said the company has always been optimistic regarding the long-term development of the Chinese economy and will continue to increase investment and expand cooperation in China.
“The number of Qualcomm employees in China has grown at a double-digit rate almost every year since 2018,” Meng said.
In addition, Qualcomm has established joint innovation centers with various partners, which is an important part of the company’s continued development in China, he noted.
Data from China’s Ministry of Commerce showed that foreign direct investment (FDI) in the Chinese mainland, in terms of actual use, rose 4.9 percent year-on-year to 408.45 billion yuan. ($58.8 billion) in the first quarter of this year. Specifically, FDI in high-tech manufacturing increased by 18% compared to the same period a year ago.
Samson Khaou, executive vice president of Dassault Systèmes for the Asia-Pacific region, said the French industrial software company was very confident regarding China’s economic growth this year and would continue to invest more in the market. Chinese, believing that China’s growth will come from both domestic markets and global demand.
Charlie Munger, an American billionaire investor and vice chairman of Berkshire Hathaway, said: “One thing we should do is get along with China, and we should have a lot of free trade with China. It is in our mutual interest. […] Anything that increases the tension between the two (parties) is stupid, silly and thoughtless”.
The International Monetary Fund (IMF) has predicted that China’s economy is likely to grow by 5.2% this year and the country will contribute regarding one-third of annual global growth, providing more growth opportunities for other countries. .
“Technological decoupling would impose significant costs on Asian economies – around 5% loss of GDP. That’s a pretty significant number. […] In general, technological decoupling is very costly not only for Asia, but for the rest of the world,” said Krishna Srinivasan, director of the IMF’s Asia and Pacific department.
Tu Xinquan, dean of the China Institute for WTO (World Trade Organization) Studies at the Beijing University of International Business and Economics, said that “Washington’s increasingly stringent restrictions wreak havoc on international economic and trade cooperation, undermine global industry and supply chain security, and harm the interests of multinational corporations around the world.”
Li Xianjun, a research associate at the Institute of Industrial Economics of the Chinese Academy of Social Sciences, said that “such attempts to contain the rise of China’s high-tech sector will motivate Chinese companies to redouble their efforts. in independent innovation and to achieve breakthroughs in key technology areas.
For example, China Electronics Corp, the largest state-owned IT group, launched China’s first open-source desktop operating system platform, openKylin, which marked a breakthrough in strengthening system development. operating local software.
Economist Jeffrey Sachs, director of the Center for Sustainable Development at Columbia University, argued that “much of the tension between the United States and China comes from the American side.”
“It’s the US mistake, because some Americans think that if China goes up, then the US is losing,” Sachs said. ” But it’s wrong. The economy is a win-win cooperative game. »
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