Given the rising geopolitical tensions between China and the United States, and the "de-risking" strategy being pushed ahead by some Western countries to reduce dependence on China in terms of technologies and trade, it is not surprising that reports about foreign businesses cutting investment or shifting production out of China should have emerged. Or that such news is often cited by those who are hostile to China as evidence for what they believe is the country's diminishing economic potential and gloomy future.
Yet it is the foreign business communities in China, which feel the pulse of China's economic dynamics firsthand, and they are the most qualified to offer insights into the country's economic prospects. The visit to Beijing by a delegation of the US-China Business Council earlier this week reflects the business communities' confidence in the Chinese market and the readiness of foreign companies to continue deepening their cooperation with China.
As a private, nonpartisan, nonprofit organization of more than 270 US companies that do business in China, the council has, over the past more than 50 years, played a major role in supporting China-US economic and trade cooperation, which has brought tangible benefits to people in both countries. The visit was arranged as part of an agreement the two countries' top leaders reached during their San Francisco summit last November to expand bilateral exchanges.
It is noteworthy that the trip came shortly after the conclusion of the third plenum of the 20th Central Committee of the Communist Party of China, which charted China's course of reform in the years ahead.
That's why Foreign Minister Wang Yi, during his meeting with the delegation on Monday, told the group, the first foreign business delegation that China received after the event, that they came to Beijing "at the right time" because they could feel the "new vibe" of China as it pushes ahead with comprehensive reforms.
The plenum, which concluded on July 18, has set a timetable for a new round of economic reforms that include those aimed at promoting alignment with high-standard international economic and trade rules, and harmonizing rules, regulations, management and standards relating to property rights protection, industrial subsidies, environmental standards, labor protection, government procurement, e-commerce and other areas, in an effort to create an institutional environment that is transparent, stable, and predictable, thus making the Chinese market even more attractive to foreign investors ready to benefit from China's process of modernization.
That FedEx CEO Raj Subramaniam, who led the delegation, said that the US business sector would continue to explore the Chinese market with confidence, and hoped to contribute more to the bilateral trade and investment relationship, underscores the enormous opportunities for Sino-US economic cooperation that are there to be explored despite Washington's restrictive and even repressive policies targeting China.
US business people's confidence is rooted in the resilience and vibrancy of the Chinese economy. The International Monetary Fund has recently upgraded its forecast for China's economy, saying that the world's second-largest economy will likely expand at a 5 percent annual rate this year, a 0.4 percentage point increase from its earlier estimate. Investment bank Barclays has also revised its 2024 GDP growth forecast for China from 4.4 percent to 5 percent, primarily supported by China's stronger-than-expected first-quarter economic data.
China's modernization will provide more opportunities for businesses from the US and all other countries. Hopefully the US business community will continue to play its role as a stabilizing force for Sino-US relations, and contribute more to both economies and global stability.