Key takeaways from our Beijing chapter’s Regional Strategic Forecast

Article tags BusinessChinaEconomyChinaBusiness, Industry

It was our great pleasure to host the Regional Strategic Forecast event at Hotel Eclat Beijing on September 15. Many thanks to our keynote speaker, Simon Baptist (EIU’s Global Chief Economist), for presenting his expert views on the regional and global outlook, and our fantastic panellists, Hugues De La Marnierre (Société Générale), Dr Yong Gao (Bayer China), William Qiu (Zhong Lun Law Firm), Miguel Montoya (KPMG Beijing) for joining our China Director, Mattie Bekink, in discussing and sharing insights about how to cope with present challenges in the Chinese market.

Here are the key takeaways from the event:

• Gradual decoupling between the West and China would force countries to take sides. In addition, China’s strict COVID measures remain one of the major drags on recovering its economy. The “dynamic zero-covid” policy will remain in place until mid-2023.
• The extreme weather conditions of this summer are almost certainly a result of climate change. The unprecedented heat wave that has dried up rivers, sparked bushfires, and wilted crops, reminds us climate change is the biggest threat humans face in the modern era—our biggest enemy has always been by our side.
• Significant changes in cybersecurity regulations witnessed in China amid escalating US-China tensions create obstacles for foreign business operations. MNCs in China, therefore, need to be proactive in developing and adapting better systems to address these threats. An effective and practical compliance framework is required to meet all required regulations.
• It is understandable that MNCs have raised concerns about China’s growth outlook, given the current state of the country’s economy, and its geopolitical tensions with the West and harsh COVID-19 protocols. However, in the long term, China is still one of the most important markets for MNCs and a source of knowledge for innovation. China’s extensive manufacturing experience, availability of skilled labour and industry ecosystem ensure its competitive advantage, especially in the renewable energy sectors.
• Further to the above point, even though we are at a critical point in the face of a potential recession, China will remain as a critical market and production hub that MNEs are not able to divest from easily. A comprehensive understanding and full awareness of the economic environment and landscape across the vast country is therefore crucial for business leaders to stay alert to potential opportunities during difficult times.

Wed, 12th Oct 2022 Article tags BusinessChinaEconomyChinaBusiness, Industry