Page 54 - 2019 White Paper on the Business Environment in China
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9 White Paper on the Business Environment in China
This will become an irresistible force in Belt and Road Works Cited
countries and deliver economic growth. Third is the
US tariffs. Contrary to some expectations, this will lead CRS.“China’s Economic Rise: History, Trends, Challenges,
to a US economic slowdown. Many US companies are and Implications for the United States.” EveryCRSReport.
deeply embedded in their relationship with China as com, Congressional Research Service, 5 Feb. 2018, www.
their primary source of profits. This includes companies everycrsreport.com/reports/RL33534.html.
that do business in China like Starbucks and Apple.
Other companies, like Walmart, rely on Chinese products eiadmin. “China Is next Year’s Biggest Opportunity,
in their supply chains or on their shelves. US tariffs kill Says Lloyds Private Bank’s Investment Outlook 2019 ~
both these business models. Investors will sell Chinese Every Investor.” Everyinvestor.co.uk, Every Investor, 12
companies that rely on doing business with the US. Dec. 2018, everyinvestor.co.uk/2018/12/12/china-is-next-
They will buy companies involved in the Belt and Road years-biggest-opportunity-says-lloyds-private-banks-
Initiative. Fourth is Trump’s trade war. This is aimed at investment-outlook-2019/.
destroying the global trade order and the effectiveness
of the WTO. Investors will focus on defensive stocks that Fang, Nanlin. “China Posts Slowest Economic Growth
derive profits mainly from the domestic Chinese market. since 1990.” CNN NewSource., CNN, 21 Jan. 2019,
A slight economic slowdown will be led by companies www.clickondetroit.com/news/china-posts-slowest-
exposed to US trade, but this will be counterbalanced economic-growth-since-1990.
by steadily growing demand from Chinese consumers.
Fifth is the need to be alert for supply chain disruptions, Guppy, Daryl. “Investor Options for the Chinese
particularly for those companies that rely on US based or Economy in 2019.” ChinaDaily.com.cn, China Daily,
influenced supply chains. This disruption closes access 21 Jan. 2019, www.chinadaily.com.cn/a/201901/21/
to some markets or makes some business activities WS5c455f0aa3106c65c34e59d2.html.
more difficult. Investors will rebalance their portfolios to
reduce exposure to disrupted companies. This may also Koty, Alexander Chipman. “China’s FDI Policy: Wider
offer future opportunity as these companies develop Market Access, New Incentives Announced.” China Briefing
alternative supply chains or product substitution. China’s News, Dezan Shira & Associates, 15 Oct. 2018, www.china-
economic growth will slow in 2019, but “it’s like pruning briefing.com/news/chinas-fdi-policy-new-incentives/.
a fruit tree prior to winter” (Guppy).
Ma, Josephine, and Guo Rui. “Where to Now? 40
Years after the Big Experiment That Changed China.”
South China Morning Post, South China Morning Post,
23 Nov. 2018, www.scmp.com/news/china/politics/
article/2172934/where-now-40-years-after-big-
economic-experiment-changed-china.
Mowat, Adrian. “Why Savvy Investors Should Buy
Into China’s Bear Market.” Barron’s, Barrons, 27 Oct. 2018,
www.barrons.com/articles/china-stock-market-buying-
opportunity-1540576037.
PRC. “Summary on Chinese Economy.” Consulate
General of The People’s Republic of China in Chicago,
PRC, 22 Oct. 2003, www.chinaconsulatechicago.org/eng/
sw/t31992.htm.
Qiu, Quanlin. “Guangdong to Relax Foreign
Investment Rules.” ChinaDaily.com.cn, China Daily,
14 Sept. 2018, www.chinadaily.com.cn/a/201809/14/
WS5b9b45bea31033b4f4656128.html.
54
This will become an irresistible force in Belt and Road Works Cited
countries and deliver economic growth. Third is the
US tariffs. Contrary to some expectations, this will lead CRS.“China’s Economic Rise: History, Trends, Challenges,
to a US economic slowdown. Many US companies are and Implications for the United States.” EveryCRSReport.
deeply embedded in their relationship with China as com, Congressional Research Service, 5 Feb. 2018, www.
their primary source of profits. This includes companies everycrsreport.com/reports/RL33534.html.
that do business in China like Starbucks and Apple.
Other companies, like Walmart, rely on Chinese products eiadmin. “China Is next Year’s Biggest Opportunity,
in their supply chains or on their shelves. US tariffs kill Says Lloyds Private Bank’s Investment Outlook 2019 ~
both these business models. Investors will sell Chinese Every Investor.” Everyinvestor.co.uk, Every Investor, 12
companies that rely on doing business with the US. Dec. 2018, everyinvestor.co.uk/2018/12/12/china-is-next-
They will buy companies involved in the Belt and Road years-biggest-opportunity-says-lloyds-private-banks-
Initiative. Fourth is Trump’s trade war. This is aimed at investment-outlook-2019/.
destroying the global trade order and the effectiveness
of the WTO. Investors will focus on defensive stocks that Fang, Nanlin. “China Posts Slowest Economic Growth
derive profits mainly from the domestic Chinese market. since 1990.” CNN NewSource., CNN, 21 Jan. 2019,
A slight economic slowdown will be led by companies www.clickondetroit.com/news/china-posts-slowest-
exposed to US trade, but this will be counterbalanced economic-growth-since-1990.
by steadily growing demand from Chinese consumers.
Fifth is the need to be alert for supply chain disruptions, Guppy, Daryl. “Investor Options for the Chinese
particularly for those companies that rely on US based or Economy in 2019.” ChinaDaily.com.cn, China Daily,
influenced supply chains. This disruption closes access 21 Jan. 2019, www.chinadaily.com.cn/a/201901/21/
to some markets or makes some business activities WS5c455f0aa3106c65c34e59d2.html.
more difficult. Investors will rebalance their portfolios to
reduce exposure to disrupted companies. This may also Koty, Alexander Chipman. “China’s FDI Policy: Wider
offer future opportunity as these companies develop Market Access, New Incentives Announced.” China Briefing
alternative supply chains or product substitution. China’s News, Dezan Shira & Associates, 15 Oct. 2018, www.china-
economic growth will slow in 2019, but “it’s like pruning briefing.com/news/chinas-fdi-policy-new-incentives/.
a fruit tree prior to winter” (Guppy).
Ma, Josephine, and Guo Rui. “Where to Now? 40
Years after the Big Experiment That Changed China.”
South China Morning Post, South China Morning Post,
23 Nov. 2018, www.scmp.com/news/china/politics/
article/2172934/where-now-40-years-after-big-
economic-experiment-changed-china.
Mowat, Adrian. “Why Savvy Investors Should Buy
Into China’s Bear Market.” Barron’s, Barrons, 27 Oct. 2018,
www.barrons.com/articles/china-stock-market-buying-
opportunity-1540576037.
PRC. “Summary on Chinese Economy.” Consulate
General of The People’s Republic of China in Chicago,
PRC, 22 Oct. 2003, www.chinaconsulatechicago.org/eng/
sw/t31992.htm.
Qiu, Quanlin. “Guangdong to Relax Foreign
Investment Rules.” ChinaDaily.com.cn, China Daily,
14 Sept. 2018, www.chinadaily.com.cn/a/201809/14/
WS5b9b45bea31033b4f4656128.html.
54
