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Foreign firms have high hopes on Chinese market

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Foreign firms have high hopes on Chinese market

Foreign companies remain optimistic about the Chinese market amidst trade wars threatening on the sidelines. They have further expressed their confidence in China emphasizing its indispensable role in their business, assuring further investment in the world’s second largest economy.

General Electric’s Global Growth Organization President and CEO, Rachel Duan recalls how China has always been a gane changer since they started doing business in 1906.

General Electric Company (GE) is an American multinational conglomerate incorporated in New York City and headquartered in Boston. As of 2018, the company operates in a variety of segments such as aviation, healthcare, power, renewable energy, digital industry, additive manufacturing, venture capital and finance, lighting, and oil and gas. has a subsidiary in Bermuda.

GE ranked among the Fortune 500 as the 18th-largest firm in the U.S. by gross revenue last year. Back in 2011, it ranked among the Fortune 20 as the 14th-most profitable company. But since then GE’s profitability sagged and has gravely underperformed the market. However, what remains to be quite an accomplishment are the two Nobel Prize awards won by its employees Irving Langmuir in 1932 and Ivar Giaever 1973.

China has proved itself to be a strategic market no one can ignore. It has been a pivotal part if the global economy and will become a key factor in GE’s future development, Duan further explains as she expressed how privileged GE is to become a participator, witness and beneficiary of China’s social and economic development.

Despite US-China trade tension, the value of orders that this US-based company received in China exceeded US$8 billion in 2018. A new offshore wind factory in Jieyang and a development center in Guangzhou was announced to commence to meet China’s growing demand for offshore wind energy.

GE remains to be one of the many foreign companies that remain buoyant about the Chinese market.

US-based Vanguard Group, the world’s biggest provider of mutual funds, considers China as one of the most crucial and indispensable markets worldwide.

The Vanguard Group. Inc. was established in the United States in 1975 and has become the world’s largest public fund management company. Its global asset management size is more than 5.4 trillion US dollars. Its global operations across Australia, Japan, Europe, Canada, Hong Kong and other markets is quite notable. Its Beijing Representative Office was established in 2014. After 3 years, Vanguard officially established Pioneer Pilot Investment Management (Shanghai) Co., Ltd., a wholly foreign-owned enterprise in Shanghai.

CEO of Vanguard Asia and chairman of Vanguard Investment Management (Shanghai) Ltd. Charles Lin has expressed firm confidence and determination about taking root in China. Vanguard remains to be in participating in the opening-up of China’s financial markets. Lin is confident about China’s capital market and how well Vanguard will grow alongside it.

He sees how China’s financial and asset management markets are full of vitality and opportunity. And as individual investors it would mean an increased demand for wealth management.

A 6.9% increase in foreign direct investment resulted to 604 billion yuan in the first eight months of 2019.

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