Thank you to all who tuned into the members-only Virtual Event “China’s Economy - The New Normal?” hosted by our San Francisco Executive Director, Henry Ines, leading an in-depth discussion of the issues that have risen over the past months due to the changes in the structure of China’s economy.
Our guest speakers included Christopher Clark, an Arizona State University Professor who teachers the principles of international business, and Rudy Vetter, Chief Marketing Officer of Green Card Fund. Together they discussed the impact of the Chinese government's creation of QE and what changes resulted. China is attempting to offset the weakening of it’s old economy as it attempts to move away from exports and mega-infrastructure projects and towards domestic consumption. Our speakers elaborated on what this could mean for the world economy and what countries could be affected the most. They also explored the topic regarding the recent policy changes in China and what issues or opportunities a foreign investor could expect to face when attempting to do business in China.
In the words of Rudy Vetter, “We do not fully understand the mechanisms inside the Chinese economy because they are so different than the Western markets.” Chris Clark made the point regarding foreign business trying to enter the Chinese market, “There are certain restrictions that make it difficult for US firms to enter the market, making them enter through a joint-venture... These challenges also arise because laws shift so much.”
A final point Henry Ines made on the relationship between the US and China was, “If China’s economy collapsed the US would suffer greatly, the relationship between these two countries has been very diplomatic and cooperative and they need to decide whether the US and China are going to cooperate or engage in rivalry.”
Do you agree? Or do you have your own ideas about what the shifts in Chinese policy means for the global economy?
Let us know in the comments below!