According to Wang Huiyao, founder and president of the Center for China and Globalization from Beijing, multinational companies realize that “China has enormous potential”, considering that the growth rate of the middle class in China is increasing.
“In developed countries like the US, (every 1,000 population) there are 800 cars, … but in China there are only 200 (cars). So there is a very big wave (of growth) for China,” he said.
However, US business in China has a “less optimistic outlook”, according to the American Chamber of Commerce (AmCham) in Shanghai.
Their survey showed that last year, 31 percent of member companies increased the amount of investment in China compared to the previous year. On the other hand, 22 percent of companies actually reduced their investment amount. In addition, 40 percent of companies have shifted or plan to shift their investment from China, especially Southeast Asia.
CLEAN TECHNOLOGY REDUCES RISK
It seems that the world cannot live without products made in China. Just last year, for example, China became the world’s largest exporter of passenger cars, beating Japan.
Not only that, China is also leading in the electric vehicle (EV) sector. Although they only accounted for 4.2 percent of global EV exports in 2018, in 2022 their share will increase to 35 percent, according to the International Energy Agency (IEA).
In contrast, in 2018, Japan became the largest EV exporter with a share of 24.5 percent, but this then fell to 9.3 percent in 2022.
Currently, BYD, a manufacturer from China, is the top EV seller in the world. Tu, who originally worked at a car assembly plant in Michigan, saw BYD’s quality change compared to before.
