January 2, 2023
Foreign companies have high hopes for their success on the Chinese market in the upcoming year as the country’s COVID-19 policies continue to be improved and the country’s economic recovery gains momentum.
China has declared that beginning of January 8, 2023, it will downgrade its management of COVID-19 because to the virus’ mutation, the spread of vaccination, and the accumulation of experience in prevention and control. The COVID-related quarantine regulations have been loosened, and limitations on foreign flights have been eliminated. The virus is now classed as a Class B infection.
Many global business executives have praised the change in COVID-19 policy. One of them is Clas Neumann, senior vice president of SAP, who recently spoke positively about the Chinese market in an interview with Xinhua.
“Our customers have experienced uncertainty as a result of the COVID problem during the past three years. I think both domestic and foreign businesses are pleased with the changes being made to the regulations “said Neumann. “I believe this will benefit businesses in the long and mid terms.”
Over 6,000 people work at SAP, a market leader in business software solutions, which has over 15,000 clients in China. Neumann claims that the business will keep advancing innovation, such as cloud goods in the Chinese market.
Fujifilm of Japan has continued to increase investment in China despite the COVID-19 outbreak because it is confident in the robust resiliency of the Chinese economy.
“We are really happy to note that the Chinese government has lately improved COVID-19 containment measures even more. Although there may be some short-term difficulties, we anticipate a long-term meaningful recovery “the president of Fujifilm (China) Investment Co Ltd., Kenichi Tanaka, stated. He anticipates that China-Japan trade and technological exchanges would be extensively marketed.
Consumption, which has already seen a rise in consumer and business confidence, will be the key driver of China’s economic recovery in 2023, according to Zhu Chaoping, a global market analyst at J.P. Morgan Asset Management.
The prediction made by J.P. Morgan Asset Management indicates that China’s GDP growth could increase to over 5% in 2023.
Airlines and consumer spending would benefit the most as China’s epidemic prevention and control enter a new stage, according to Alicia Garcia Herrero, head economist for Asia Pacific at the French investment bank Natixis.
“There is great opportunity for Chinese and Asia Pacific airlines to catch up,” she said, adding that with better mobility and less constraints, China’s automobile sales should likewise experience a cyclical resurgence. Many airlines across the world are now approaching the pre-pandemic revenue level.
A similar opinion is held by Ferrero China’s general manager, Mauro De Felip. He emphasized that China has been particularly effective in controlling the epidemic since the start of 2020, and that with the adoption of new rules and policies, China will be better able to deal with and adapt to any future varieties.
Source: China Daily.com
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