31 May 2020

Earlier this month, US multinational conglomerate Honeywell launched its emerging market headquarters and innovation Centre in the central Chinese city of Wuhan.

It came only a few weeks after U.S. energy giant ExxonMobil and its Chinese partners held a special virtual groundbreaking ceremony for a chemical complex in China's southern province of Guangdong.

These stellar projects by US flagship enterprises, happening while the coronavirus pandemic is still raging across the globe, and the clamoring for decoupling with China has once again captured headlines, have given off a clear signal that global investors remain confident in a promising future of China even at this unprecedentedly challenging and uncertain time.

Perhaps the most important source of that continued confidence comes from China's forceful epidemic response and well-managed post-pandemic economic rehabilitation.

Since the outbreak, China has taken some very decisive containment steps, and effectively put the disease under control. This significant progress has allowed Beijing to roll out a raft of measures to bring production back on track, and reopen businesses. As a result, recovery is underway, and China is getting back on its feet steadily.

Figures from China's National Bureau of Statistics showed on Wednesday that profits from China's major industrial firms in April edged down 4.3 per cent, recovering from the 34.9-per cent drop registered in March.

China's drive to get back to normal is undoubtedly a shot in the arm to help provide urgently needed medical supplies like masks and protective suits to the world, stabilize global supply chains, and shore up heavily-hit manufacturing industries worldwide and international trade.

China's economic resilience, unique and competitive manufacturing edges, abundant industrial workers and solid fundamentals for long-term economic growth offer investors and entrepreneurs another reason to keep their faith in the Asian country.

China-skeptics in the United States who have vowed to reshore already outsourced manufacturing jobs need a grip on reality: existing global supply chains are a natural, decades-long progression jointly shaped by a variety of factors like operation costs, industrial capabilities, and a sufficient and skilled workforce.

China still remains home to the world's most attractive and populous consumer market. Last year, consumer spending contributed 57.8 per cent to China's overall economic growth. With 400 million middle-income earners, greater potential for consumer products and public services awaits to be tapped.

Over the decades, encouraged by the massive and fast-growing Chinese consumer markets, foreign companies have been shifting a model of "made in China" to 'made for China'.

Moreover, the Chinese government's persistent pledge to create a more friendly business environment, for stronger protection of intellectual property rights and to bolster global free trade and multilateralism has made its domestic markets more attractive. The foreign investment law that took effect at the start of the year is a fine example of China's commitments. Ends