"China can provide a lot of things for the global economy" Executive | Chinese | Economy
According to the Nihon Keizai Shimbun on June 26, the CEO of Fidelity International said that "China can provide a lot of things for the global economy".
The reporter of Nihon Keizai Shimbun had an exclusive interview with Anne Richards, CEO of Fidelity International.
Journalist's question: Will the deterioration of China US relations force multinational corporations to make choices between the two countries?
Anne Richards replied: For the past four or five years, this geopolitical topic has been the headline news. This trend is inevitable for the two largest economic powers in the world. 45 years ago, when China opened up, many companies saw opportunities for high-quality subcontracting. China subsequently became a competitor. We have now reached a balance point of economic power. Although the possibility of a global conflict between the two countries cannot be ruled out, it must be emphasized that the two countries are economically interdependent and crucial to the world economy, especially with significant cooperation in many areas.
Q: Should companies envision a model that does not require China?
Answer: No, I don't think so. Most multinational corporations are not in this situation. Their resilience lies in their ability to retain all choices. The damage to the global economy caused by the decoupling and disconnection between the United States and China will be too severe. China can provide a lot of things for the global economy. For example, don't forget that China is currently a leader in the development of electric vehicles or solar panels. China's role in the renewable energy supply chain makes it a key player in energy transformation. The two countries should identify areas of common concern and scenarios for cooperation.
Q: Is the increasing preference of Chinese people for Chinese brands a threat to Western companies?
Answer: Every country tends to promote locally produced brands to consumers. Those who believe that China lacks the ability to innovate are wrong. The quality of Chinese brands has significantly improved, even surpassing some Western brands. The latter must accept this challenge and maintain close contact with the behavior of consumers and competitors. In business, nothing is taken for granted! Western companies have the opportunity to develop in China by adapting to local consumer demand. Our business in China proves this. Given the aging population and necessary support for new private pension plans, asset management has strategic significance in China. We obtained a license in December 2022 to provide onshore investment solutions in China. During this process, we have seen a strong willingness from regulatory agencies to cooperate with foreign companies to improve local industry standards, which is related to the willingness to further increase capital market penetration.
