Being bullish about the long-term growth prospects of the Chinese economy and the potential of its huge consumer market, a number of large U.S. companies, from fast food to high-end fashion, have recently said that they plan to continue to expand their business in China this year.
Last year, McDonald's opened 700 new outlets in China. The leading global food service retailer plans to open 900 more this year, more than doubling the number it plans to add in the U.S., according to a report by the Wall Street Journal (WSJ) on Sunday.
Meanwhile, coffee giant Starbucks said its store count on the Chinese mainland is expected to grow to 9,000 by 2025, providing 35,000 new jobs.
"I remain more confident than ever that we are still only in the early chapters of our growth story in China," Starbucks's interim Chief Executive Howard Schultz was quoted as saying.
Coach's parent company, Tapestry, also deepens its push into China. The company set aside $325 million for capital and software spending, and roughly half will go to new stores and renovations in China. Tapestry's CEO Joanne Crevoisera said this month China is fertile ground for long-term investments, the WSJ reported.
Packaged-meat company Tyson Foods previously said six new plants will come online this year, half of which will be in China.
Jim Snee, CEO of Hormel Foods, said the company plans a significant expansion in China to come online in 2024.
While markets are worried about a slowdown in Western economies, economists expect China's growth to pick up. Last month, U.S. firm Goldman Sachs raised its forecast for China's economic growth in 2023 to 5.5 percent from 5.2 percent previously.