Asian companies remain committed to China despite economic headwinds, trade tensions

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China Economy,Investment,OCBC

As China saw a sharp drop in inbound foreign direct investments in the first four months of 2024, top leaders have stepped up engagement with foreign companies.

New: You can now listen to articles.HONG KONG: China, the world’s second-largest economy, remains a market too big to ignore for many Asian companies even as trade tensions with the west continue to simmer.

This has prompted speculation that reviving foreign investments and the economy will top the agenda of the long-anticipated Third Plenum set for July – the meeting of the Community Party’s Central Committee where major economic policies and reforms were historically launched. “As we look at what are the challenges in the world, we will continue to shape our strategy accordingly - putting investments into areas that are not so much impacted by trade, so that investors from the north, as they start in Singapore, the rest of ASEAN will be able to serve them,” she added.

Ms Wong attributed this to new payment methods and technology, which have driven cross-border QR transactions up by seven times since last September. Mr Hyuk-Tae Kwon, co-founder and CEO of Singapore-based venture capital firm Pine Venture Partners, said China remains the nearest market, and one of South Korea’s largest import and export partners.

“I think the level of complexity in terms of operating in China has gone up significantly. I would recommend many of my clients to find a capable and trustworthy partner as a new strategy, instead of trying to do everything on your own in China, because the changes are too fast, too drastic,” he said.

 

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