Source: Xinhuanet
Affected by factors such as the COVID-19 epidemic and the impact of international geopolitical tension on the global economy, China's economy is currently facing multiple challenges and tests. However, in this context, Tesla's Shanghai plant is about to expand, and it is expected to become Tesla's largest auto export hub in the world in the future. For Nomura Holdings, an international financial institution that has entered the Chinese market for 40 years, the Chinese market is an important strategic market. The long-term layout is already being planned.
The popularity of investing in China has not diminished, and foreign capital has cast a "vote of confidence" in the Chinese economy. International institutions and observers believe that exploring China's economy should look at "time" and "situation". Although China's economy is under pressure from internal and external factors in the short term, it will not "stall" due to this phased and temporary impact. The growth engine will not "turn off"; in the long run, the internal logic of China's economic growth has not changed, and the trend of China's economy has not changed.
At present, China's economy is facing triple pressure, demand contraction, supply shock and weakening expectations. From the outside, the world economy has encountered "headwinds". Developed economies are suffering from inflation worries, and the sharp turn in their monetary policy has brought negative spillover effects to the global economy and finance, and some developing economies have fallen into the predicament of stagflation. The negative impact of external factors on China's economy cannot be ignored.
Not long ago, the International Monetary Fund sharply lowered its forecast for world economic growth this year, arguing that the world economy, which is recovering from the epidemic, has been hit hard by the conflict between Russia and Ukraine, with accelerated inflation, tightening financial conditions, high debt levels, and supply chain disruptions. "Capping.
Some overseas media have noticed that China's decision makers move from time to time, and the fiscal and monetary side work together. Combined tax and fee support, direct funds to stabilize jobs to enterprises, unemployment insurance to stabilize jobs and improve skills, and strategies to cultivate market players take into account both stabilizing growth and protecting people's livelihood, instilling confidence in the market. 1
Overseas observers said that a series of measures can be described as "timely rain", market confidence is increasing, and positive effects are beginning to appear. Yu Sung-geun, director of South Korea's East Asian Research Institute, believes that with the coordination of epidemic prevention and control and economic growth, coupled with more economic boosting policies, China's economy will soon accelerate and become more dynamic.
Experts pointed out that China's economy is large and resilient, coupled with sufficient policy tools, it has a strong ability to resist risks. He Dayong, managing director and global senior partner of Boston Consulting Group, believes that thanks to the improvement of the financial system and the enhanced financial security awareness of financial regulators and market players, China's financial and financial stability is stable.
From the perspective of China's long-term economic growth cycle, the profound changes in China's economy will continue. The supply-side structural reform will drive economic quality and efficiency, and the endogenous power will be more sustainable, which will be a boon for China's economic and trade partners. In the eyes of some international business people, the realization of this change is the "internal logic of China's growth miracle" - the perseverance of reform and opening up.
"In the long run, the general trend of China's economic stability and improvement, transformation and upgrading, and high-quality development has not changed. No matter in the face of the 2008 international financial crisis or the new crown epidemic, China's responsible attitude has not changed, and China has continued to open up to the outside world. The confidence of the outside world in the Chinese market will not change." Liao Tianshu, chairman of the Boston Consulting Group China, said in an interview with Xinhua News Agency.
In 2019, Nomura Holdings’ joint venture securities company in China, Nomura Orient International Securities, was established, becoming one of the first batch of newly established foreign-controlled securities companies. "Over the past 40 years of China's reform and opening up, the economy has continued to grow rapidly, laying a solid foundation for the opening and development of China's financial industry. In recent years, China's economic transformation and upgrading have provided strong support for the high-level opening of the financial industry." Executive Director of Nomura Holdings, China Committee Chairman Toshiyasu Iiyama told Xinhua.
"China's capital market is already the second largest capital market in the world. The multi-level capital market is being continuously improved and opened to the outside world, providing more new opportunities for foreign financial institutions to develop in the Chinese market." Iiyama Junyasu told Nomura China's business development is full of confidence.
Investing in China is investing in the future. According to a recent report released by the German Chamber of Commerce in China and the American Chamber of Commerce in China, 71% of German-funded companies and over 60% of US-funded companies plan to increase investment in China. In the first quarter of this year, foreign investment in China's high-tech industries increased by more than 50% year-on-year, and foreign investment in high-tech service industries increased by nearly 60%.
Stable and far-reaching, China's economy and the world economy are deeply integrated, and China and the world's economic partners will walk hand in hand. (Participating reporters: Liu Chunyan, Cai Shuya, Lu Rui)
