Foreign enterprises in China adopt positive attitude toward China's economy

By：Xinhua Update：2016-12-07

SHANGHAI, Dec. 2 (Xinhua) -- Foreign enterprises are upbeat about the country's economy and some plan to increase investment in China in 2017.

Mahesh Kini, managing director and head of trade finance and corporate cash management of Deutsche Bank, called China "a production hub for the world," noting that there was great demand for commodities to support infrastructure development.

The Chinese government is looking for new drivers to boost its economy. It is clear that the economy is rebalancing after a journey from relying on exports to being the production hub of the world to becoming a more domestic-consumption oriented economy, Mahesh Kini said.

"With increasing household incomes, domestic market demand is really expanding and upgrading. From that perspective, we really see a big change and shift in the local economy. This change also has a tremendous impact on the banking system," said Mahesh Kini. "As a financial institution, we grow with the economy. We are focusing more on local trade finance, local cash management in addition to import and export flows."

PwC released its latest APEC CEO survey "China Summary" at the end of November. The survey found that 59 percent of Chinese mainland and Hong Kong executives were planning to increase investment in China over the next year, compared with 54 percent last year. Among other APEC executives with businesses in China, 43 percent said they were increasing investment.

"It is significant that APEC business leaders look beyond a slowdown to the long term. China's slower economic growth is not enough to put business leaders off investment and expansion. China remains a powerhouse of potential for APEC businesses for new products and partnerships," said Raymund Chao, PwC Greater China chairman.

Zhou Hao, senior EM economist Asia with Commerzbank AG, said China's manufacturing PMI came in at 51.7 for November, up from 51.2 in the prior month, the highest since July 2014. The continued improvement in China's PMI reflects rising demand and surging commodity prices, led by steel and coal.

From the aspect of the job market, industry insiders forecast that the level of mainland employment will remain stable in 2017.

According to Michael Page, an international recruitment consultative agency, which collected the opinions of nearly 1,000 employers on the Chinese mainland across all industries on employment trends in the coming year, 48 percent of companies were planning to hire in 2017.

In addition, 45 percent of companies surveyed also said they expected to offer a six to ten percent salary increase to staff in 2017.

Andy Bentote, senior managing director of Greater China Michael Page, is optimistic that hiring trends in China will remain positive in 2017 despite the rebalancing of the economy.

Competition for talent is also likely to intensify in China as domestic companies are rapidly becoming employers of choice with the ability to attract and retain strong candidates, he said.