Chinese economy resilient, long-term fundamentals attractive for investors, says Swiss banker
China‘s economy boasts excellent potential and resilience, said Swiss banker Fiorenzo Manganiello in a recent interview with Xinhua, stressing that the long-term fundamentals of the Chinese economy remain attractive for investors.
The British Financial Times recently reported that several international investment banks are carrying out ambitious business expansion plans in Shanghai, and the current prevention and control measures against COVID-19 in the city won’t discourage them.
According to Manganiello, co-founder at Lian Group, a specialized direct investment firm in Europe, these expansion plans prove that China has remained one of the world’s most resilient economies during the pandemic, and its future growth potential remains more robust than most other major economies.
Manganiello said China’s economic efficiency has improved significantly and domestic and global demand for Chinese goods is strong.
China can withstand downward pressure and risks and has the confidence to stabilize the macroeconomic market, said Manganiello, previously the vice president of the Swiss private bank Banque Profil de Gestion.
According to the banker, China’s economy is under downward pressure in terms of the international balance of payments and fiscal revenue and spending, but its economic foundation remains solid.
He noted that China’s total retail sales of consumer goods and industrial added value, main factors supporting economic growth, have recovered better than expected.
China continues to improve and liberalize its investment environment, he said.
In recent years, China has promulgated the Foreign Investment Law and established a complaint mechanism for foreign-invested enterprises and a service system for foreign investment, noted the banker.
These policy measures protect foreign investors’ legitimate rights and interests and encourage them to enter the Chinese market, he said, adding that China’s market access space is widening, and restrictions on the manufacturing industry have basically been lifted.
Manganiello added China is bolstering investment in large-scale infrastructure and is building a safe and efficient logistics system.
Logistics infrastructure is an essential pillar for China to build a competitive advantage in the global industrial chain, significantly promoting economic development, Manganiello said.
Manganiello believes that new energy, rail transit, intelligent manufacturing, robotics, chips, and high-end manufacturing of precision instruments will be the focus of China’s future development and areas worthy of investor attention.
According to Manganiello, a stable and efficient Chinese government is the key to solving many economic problems. For example, China’s pursuit of common prosperity is committed to bridging the income gap and conducive to expanding its middle-income group, which will help make China a key global market.
“China is the world’s second-largest economy, the world’s largest trader in goods and an important link in the global value chain. The stability of China’s economy is very important to global investors,” he said.
Manganiello believes that the Asian country will continue to promote globalization and regional economic integration.
“Agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the Regional Comprehensive Economic Partnership, and the Belt and Road Initiative are powerful engines for the recovery of the global economy,” Manganiello added.