China and the US appear ready to put the trade war behind them. That eliminated an immediate threat to global asset prices. Now, investors are turning back to China's economic fundamentals. There is a forum dedicated to debating China's economic picture.
NING GAONING CHAIRMAN, SINOCHEM GROUP "The China-US trade friction was a first in many ways. It taught us a lesson and alerted many Chinese companies. Now, Chinese companies are thinking more long-term, and are paying more attention to technology. Businesses will become more persistent with long-term plans."
ZHU MIN, CHAIRMAN NATIONAL INSTITUTE OF FINANCIAL RESEARCH, TSINGHUA UNIVERSITY "First, I think Britain's breakaway from Europe has become more likely to increase risks. The second risk is China-US trade friction. It has eased down after the meeting of the two countries' leaders, which I think is a very good thing. But China-US trade frictions are a fundamental change in the long-term relations between the two countries. Now it seems various political factors, obstructions and fluctuations still exist.
XIA CHENG DALIAN "There's a dilemma, the overseas demand for Chinese goods will be weak, based on data coming out of key markets like the US and Europe. The situation is not going to improve anytime soon before more US rate hikes. So China has to rely on its home turf for economic growth. But if the domestic demand cannot keep up, it would actually increase China's trade surplus with the US as imports will be weak."
KEVIN SNEADER GLOBAL MANAGING PARTNER, MCKINSEY & COMPANY "First and foremost, we are seeing the saving rates decline, we are seeing more consumers spending, but let's remember this, we are in a place where demographics is no longer China's friend. The working population is flat to declining. That's quite a concern. So I think the real question we got to answer is -- will China's consumer-driven economy move faster enough, and will it be engaged in a productivity revolution versus where it is today?"
The fight for GDP remains the foundation for the government work, but China promises to focus on quality over quantity. That means every gain in the GDP should be a gain in jobs.
KEVIN SNEADER GLOBAL MANAGING PARTNER, MCKINSEY & COMPANY "The second reality is China has done phenomenally well in the consumer aspect of technology -- Weibo, Wechat, Douyin, and what's been happening in terms of TikTok. These are two examples where China has been doing strongly well. But when it comes to the industrial side, China is not doing as well. It's still very reliant on others to provide software. The power of the industry is complex here in China."
Before China and the US reach a long-lasting trade deal, Chinese companies are advised to reflect on how to beef up their own strengths. Experts say this will make the economy more resilient to global economic uncertainties. XC, CGTN, DALIAN.