General

Affected by the COVID-19 and the impact of international geopolitical tensions on the global economy, China's economy is currently facing multiple challenges and tests. However, in this context, Tesla's Shanghai plant is about to expand production and is expected to become Tesla's largest automobile export hub in the world in the future; For Nomura holdings, an international financial institution that has entered the Chinese market for 40 years, the long-term layout of the Chinese market, as an important strategic market, is already under planning.

Investment in China has not decreased, and foreign investment has cast a "vote of confidence" on China's economy. International institutions and observers believe that exploring China's economy should look at "time" and "trend". Although in the short term, China's economy is under pressure due to internal and external factors, it will not "stall" due to this phased and temporary impact, and the growth engine will not "stall"; In the long run, the internal logic of China's economic growth remains unchanged and the trend of China's economy for the better remains unchanged.

At present, China's economy is facing triple pressures, including shrinking demand, supply shocks and weakening expectations. From the outside, the world economy is facing a "headwind", developed economies are suffering from inflation, and their sharp turn in monetary policy has brought negative spillover effects to the global economy and finance, and some developing economies are in the dilemma of stagflation. The negative impact of external factors on China's economy can not be ignored.

Not long ago, the International Monetary Fund sharply lowered its world economic growth forecast for this year, believing that the world economy recovering from the epidemic has been greatly impacted by the conflict between Russia and Ukraine, and the "dark clouds" such as accelerated inflation, tightened financial environment, high debt level and supply chain interruption have topped it.

Some overseas media have noticed that China's decision-making level moves according to the time, and the fiscal and monetary sides work together. Combined tax support, job stabilization funds directly reaching enterprises, unemployment insurance, job stabilization and skills improvement, the policy of cultivating market players, taking into account steady growth and ensuring people's livelihood, and injecting confidence into the market. one

Overseas observers said that a series of measures can be described as "timely rain", market confidence is increasing, and positive effects are beginning to appear. Yu Shougen, director of the East Asia Research Institute of South Korea, believes that China's economy will speed up and become more dynamic after coordinating the epidemic prevention and control and economic growth, coupled with more economic boosting policies.

Experts pointed out that China's economy is large, resilient and has strong ability to resist risks with sufficient policy tools. He Dayong, managing director and global senior partner of Boston Consulting Company, believes that thanks to the improvement of the financial system and the enhancement of financial security awareness of financial regulators and market players, China's finance is stable.

From the perspective of the long cycle of China's economic growth, the profound changes in China's economy will continue. The supply side structural reform will drive the improvement of economic quality and efficiency, and the endogenous power will be more sustainable, which will be a blessing for China's economic and trade partners. In the view of some people in China's business circles, the realization of the "internal miracle" of reform and opening-up is the "persistence" of China's reform and opening-up.

"In the long run, the general trend of China's economic stability, improvement, transformation and upgrading, and high-quality development has not changed. China's responsible attitude has not changed in the face of the 2008 international financial crisis or the COVID-19. China has continuously released the information of expanding opening to the outside world, and the confidence of the outside world in the Chinese market will not change." Liao Tianshu, chairman of Boston Consulting China, said in an interview with reporters.

In 2019, Nomura Oriental international securities, a joint venture securities company of Nomura holdings in China, was established, becoming one of the first batch of newly established foreign holding securities companies. "China's sustained and rapid economic development over the past 40 years of reform and opening up has laid a solid foundation for the opening and development of China's financial industry. In recent years, China's economic transformation and upgrading has provided strong support for the high-level opening-up of the financial industry." Junkang Iiyama, executive director of Nomura holdings and chairman of the China Committee, told reporters.

"China's capital market has become the second largest capital market in the world. The multi-level capital market is constantly improving and opening to the outside world, providing more new opportunities for the greater development of foreign financial institutions in the Chinese market." Junkang Iiyama is full of confidence in the business development of Nomura China.

Investing in China is investing in the future. A recent report released by the German Chamber of Commerce in China and the American Chamber of Commerce in China shows that 71% of German funded enterprises and more than 60% of American funded enterprises plan to increase investment in China. In the first quarter of this year, the introduction of foreign capital in China's high-tech industry increased by more than 50% year-on-year, of which the absorption of foreign capital in high-tech service industry increased by nearly 60%.

Steady and far-reaching, China's economy is deeply integrated with the world economy, and China and the world's economic partners walk hand in hand.