Multinational Firms Upbeat About Long-Term Growth in China

China’s improving business environment, its strong innovation capabilities and vast market potential will encourage businesses from the United States to expand investment, move up the value chain and pursue longer-term growth in the country, executives of U.S. companies said.

They said that China’s integrated industrial supply chains, industrial and consumption upgrades, the wider opening-up of the services sector, and its deep talent pool continue to underpin its appeal to U.S. investors. The advantages will create more opportunities for U.S. companies in advanced manufacturing and services, they added.

Larry Culp, chairman and CEO of GE Aerospace, said the U.S. aircraft engine manufacturer is committed to supporting the growth of China’s civil aviation sector and expanding cooperation with Chinese airlines.

Culp, who was part of the U.S. business delegation visiting Beijing in May, said the latest high-level exchanges between China and the U.S. underscored the global nature of the aviation industry and the importance of cross-border industrial cooperation.

GE Aerospace will continue to strengthen localized service, support and training capacity in China to help airlines maintain safe and reliable fleet operations, he added.

Also optimistic about China’s long-term market prospects, Michael Miebach, CEO of Mastercard and another member of the U.S. business delegation to China, said that China has always been one of the world’s most dynamic markets with strong long-term potential. Miebach said that Mastercard will continue to strengthen its presence in China through sustained investment, stronger local partnerships, and products and services that support businesses, consumers and the broader economy.

For businesses, a stable and open environment is essential, and continued engagement between China and the U.S. helps build confidence and supports growth, he added.

Denis Simon, a senior research fellow at the think tank Quincy Institute for Responsible Statecraft, said that stable China-U.S. relations will significantly improve business expectations for multinational companies, reduce uncertainties in global supply chains and, in turn, boost confidence in international markets.

Echoing that view, Liu Ying, a researcher at Renmin University of China’s Chongyang Institute for Financial Studies in Beijing, said that China and the U.S. still have substantial room to expand cooperation in areas such as green energy development, agriculture, healthcare, financial services and digital trade, in addition to manufacturing and industrial supply-chain collaboration.