Left Menu
Development News Edition

American business leaders keeping a buoyant outlook for Chinese economy

Devdiscourse News Desk | New York | Updated: 15-05-2019 02:15 IST | Created: 15-05-2019 02:15 IST
American business leaders keeping a buoyant outlook for Chinese economy
As far as U.S. foreign direct investment in China is concerned, the report said researchers have a "positive" near-term outlook for that. Image Credit: Pixabay

The words and actions of global financial agencies and private sector companies based in the US show that they are confident about the growth of Chinese economy.

US investors pouring money into China

U.S. venture capitalists invested an estimated 22 U.S. billion dollars in China, says a new report by the U.S.-China Investment Project, which is controlled by the Rhodium Group and the National Committee on U.S.-China Relations (NCUSCR). The last year also saw more foreign investments in Chinese start-ups.

The rise of VC investments was mostly driven by U.S.-owned firms, which poured a record 19 billion dollars into Chinese start-ups in 2018, roughly doubling the previous record of 9.4 billion dollars in 2017, the report said.

"The high volume of flows in 2018 sends a clear signal that the commercial appetite for cross-border investment between our countries remains strong," NCUSCR President Stephen Orlins wrote in a foreword to the report.

"In China, American investors continued to utilize minority VC investments in 2018 to gain exposure to sectors" including digital payments, internet startups and other digital content, it said, as reported by Xinhua.

As far as U.S. foreign direct investment in China is concerned, the report said researchers have a "positive" near-term outlook for that.

"It should be noted that portfolio investment provides a new bright spot in the two-way investment relationship," Orlins said.

US investors confident about China's growth

Charlie Munger, vice chairman of U.S. multinational conglomerate Berkshire Hathaway Inc., said in an interview that he is "quite optimistic" about the Chinese economy.

Berkshire CEO Warren Buffett's business partner, Munger told Yahoo Finance that China has been "succeeding for a long time."

Munger said that China has "one of the greatest success records in the history of mankind," and what China has achieved economically is beyond his prediction.

"In the whole history of the world, no nation that big has ever advanced that fast," Munger said.

"We just have to make sure that competition (between the United States and China) doesn't get us to a point where we don't realize that the best world is one in which both the United States and China prosper," Buffett said in an earlier interview with Yahoo Finance.

Asked whether Berkshire Hathaway, the multinational conglomerate of which Buffett is chairman and CEO, would "ever make a big acquisition in China," Buffett said "the answer is we would."

Expectation on the upsurge

In an exclusive interview with Xinhua in April, Gita Gopinath, chief economist of the International Monetary Fund (IMF), praised what the Chinese government has been doing to pivot away from high-speed growth to high-quality growth, noting that such a shift would require moving away from credit-driven, investment-driven growth toward more consumption-driven growth, Xinhua reported.

China has used a combination of monetary policy tools and fiscal stimulus, Gopinath said.

The interview with Gopinath was conducted on the sidelines of the Spring Meetings of the IMF and the World Bank, during which the IMF released its new World Economic Outlook (WEO) report.

The WEO revised up the 2019 growth projection for China to 6.3 percent, up 0.1 percentage point from its previous estimation in January.

Also Read: Moody's sees Mexico's decision to DIY new refinery as a costly mistake


TRENDING

OPINION / BLOG / INTERVIEW

Rethinking Rural Livelihoods in the Times of COVID-19

The reverse migration caused by COVID 19 pandemic has put an additional burden of about one crore people on Indian villages particularly in the states of Uttar Pradesh, Bihar, Bengal and Odisha. Besides increasing the risk of spreading the ...

‘Discounted Deaths’ and COVID 19: Anthropology of Death and Emotions

Death is a social event rather than the mere cessation of biological functions. As seen by anthropologists, death is not just physical but intensely social, cultural, and political....

Indigenous knowledge of communities a must for maximizing impact of community work

Generally, it has been observed that the majority of the academicians in higher education institutions neglect the wisdom of community people and throw their weight around thinking that they know everything and the community knows nothing. ...

In rebuking FBR, Pakistan’s courts take a stand for public health

The system, if implemented effectively, will allow Pakistans revenue service to combat the illicit trade in tobacco products and potentially add hundreds of millions of dollars to the states budget each year. ...

Videos

Latest News

Lockdown extended in WB till June 15; govt allows TV, cinema production from June 1

The West Bengal government on Saturday extended the coronavirus-triggered lockdown in the state up to June 15 with relaxations and conditions. The announcement came ahead of the end of the fourth phase of the countrywide lockdown on May 31....

Maharashtra govt makes spitting, smoking in public a punishable offence

In order to contain the spread of COVID-19 in the worst hit state, the Maharashtra government on Saturday made spitting, smoking and consumption of tobacco products in public space punishable in the state. The health minister Rajesh Tope in...

Why Toy Story 5 is possible in future, what latest updates we have so far

Will Toy Story 5 be ever released in future The success of Josh Cooley-directed Toy Story 4 released in June 2019 opened another door for Toy Story 5. However, it doesnt have an official confirmation.Currently we cant expect any major devel...

Austria opposes current EU rescue, wants changes - finance minister

Austria opposes Europes current 750 billion euro plan to help economies recover from the coronavirus pandemic and wants to negotiate changes to the proposal, the countrys finance minister said on Saturday. Under the plan, which must be appr...

Give Feedback