China has “opened up” to the rest of the world. This has “ushered in a new wave…particularly visible in the newly-released Catalogue of Industries for Encouraged Foreign Investment 2019 and the 2019 Negative Lists.”
This was recognized at the 13th Summer Davos Forum as well as the recent (Japan-hosted) G-20 summit. The “opening up” movement has helped in the decrease of ambiguities that occur in trade and economics, like the Chinese-U.S. trade conflict.
But how bad is it really? According to some experts:
“Investors are being too pessimistic about the global economy and the effects of the trade war between the United States and China, according to HSBC Global Asset Management.”
In addition, Asia-Pacific’s CIO Bill Maldonado pointed out that 2019 was a lot stronger for markets than last year, showing strong returns within an environment of low inflation and low interest rate. He said:
“We should keep calm and carry on. It’s important not to get too distracted by the pessimism, on the trade dispute, on the economy and everything else. The asset that can benefit the most from this is emerging markets.”
Furthermore, America is now in a much more competitive stage with China and the growth China is encountering is likely to remain somewhat stable.