The Covid-19 pandemic is not expected to prevent China from being the only economic power to experience positive growth in 2020. At least that is what caused the sharp rise in GDP in the third quarter. But the reliability of these data is questioned, suggesting a willingness of the Chinese authorities to take liberties with the economic reality as Beijing prepares its new five-year plan. These good results support the official rhetoric of the regime, which has repeatedly praised the resilience of the Chinese economy despite a very violent initial shock (a drop in GDP of 6.9% in the first quarter). These figures also seem to validate the policy pursued by Chinese leader Xi Jinping, who imposed draconian measures at the start of the year to contain the spread of the coronavirus in his territory. As related to US companies with Chinese operations, the article states “U.S. multinationals’ majority-owned affiliates in China brought in sales of $392.7 billion in 2018, up 4.8% from a year ago, according to the latest available data from the U.S. Bureau of Economic Analysis.” How do you think that disparity in economic recovery is going to affect multinational companies with China operations?
Showing posts with label Multinationals. Show all posts
Showing posts with label Multinationals. Show all posts
Monday, November 16, 2020
U.S. companies with China operations look to the Asian giant for growth
The Covid-19 pandemic is not expected to prevent China from being the only economic power to experience positive growth in 2020. At least that is what caused the sharp rise in GDP in the third quarter. But the reliability of these data is questioned, suggesting a willingness of the Chinese authorities to take liberties with the economic reality as Beijing prepares its new five-year plan. These good results support the official rhetoric of the regime, which has repeatedly praised the resilience of the Chinese economy despite a very violent initial shock (a drop in GDP of 6.9% in the first quarter). These figures also seem to validate the policy pursued by Chinese leader Xi Jinping, who imposed draconian measures at the start of the year to contain the spread of the coronavirus in his territory. As related to US companies with Chinese operations, the article states “U.S. multinationals’ majority-owned affiliates in China brought in sales of $392.7 billion in 2018, up 4.8% from a year ago, according to the latest available data from the U.S. Bureau of Economic Analysis.” How do you think that disparity in economic recovery is going to affect multinational companies with China operations?
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