From cars to chemicals, Beijing runs (and also conquers US companies)

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The pandemic caused by Covid-19 has brought the whole world and with it the global economy to its knees. Who more and who less, each country had to pay a huge bill in the face of the advance of the virus. China was the first nation to fight (and win) the ” invisible enemy ” and, precisely for this reason, Beijing can now be taken as a model, not only for the management of the health emergency, but also as regards the economic recovery. One of the most important indicators that make the Chinese example highly virtuous is represented by the trust of foreign companies in the economy of the Asian giant. Since measures taken by the Chinese government to nip the spread of the new coronavirus have proven effective, the impact of the pandemic on the local economy has been significantly reduced compared to what has happened (and what will happen) in much of the rest of the world .

Foreign companies, reassured by the Dragon’s modus operandi, responded in the present. Suffice it to say that last April 23 the Chinese FAW group and the American Silk Corp found the agreement for an important cooperation; the latter will invest 10 billion yuan to create a joint venture with China, with the intention of producing the first sports car of the Hongqi brand. But, as you can read in the international press, this is only the tip of the iceberg. The day before the agreement between Faw and Silk Corp, there is the ceremony held remotely in the cities of Beijing, Huizhou and Dallas, and the consequent white smoke for the launch of the ExizonMobil Huizhou ethylene project in the province of Guandong with an investment of 10 billion dollars.

The two investments cited both come from the other side of the Pacific and show how foreign companies trust the Chinese market. It could not be otherwise because, thanks to its resourcefulness and courageous decisions taken in the health sector, China has been able to improve its health condition in a few weeks. By crowning the “made in China”, foreign capital indirectly rewarded the continuous improvement of the Chinese environment, which is increasingly ideal for attracting both “hard” and “soft” investments. In short, even more so now that the economic engine of Beijing has started to march at full speed, no one is going to turn his back on China.

The fundamental ingredient of the Chinese recipe, which allowed the country not to sink in the storm, was to have activated the right economic levers. Even experts from Goldman Sachs have said that the western world should take useful lessons from Beijing on how to restart. In an interview with the CNBCAndrew Tilton, chief Asia economist was clear: “China’s experience so far has shown that a full economic recovery will take time, but it is possible.” In the meantime, another news is reported in the Chinese market that feeds further confidence in the recovery. Shanghai Disneyland has announced the reopening for May 11, albeit with strict prevention and control measures. Shanghai had been the first Diseny theme park to close: it is now the first in the world to reopen.



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