Kauffman Fellows’ Post

J.P. Morgan: 𝐂𝐡𝐢𝐧𝐚 𝐢𝐬 𝐚𝐧 𝐈𝐧𝐝𝐢𝐬𝐩𝐞𝐧𝐬𝐚𝐛𝐥𝐞 𝐌𝐚𝐫𝐤𝐞𝐭 𝐟𝐨𝐫 𝐆𝐥𝐨𝐛𝐚𝐥 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 An interesting article from CNBC highlights the strategic insights of JPMorgan's Asia Pacific CEO, Sjoerd Leenart, who underscores the importance of engaging with #China. At the Global China Summit in Shanghai, Leenart stressed that businesses "𝙝𝙖𝙫𝙚 𝙩𝙤 𝙙𝙤 𝙗𝙪𝙨𝙞𝙣𝙚𝙨𝙨 𝙩𝙝𝙚𝙧𝙚" due to China's massive influence on the global economy 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐬 𝐚𝐧𝐝 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜 𝐈𝐦𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬: 𝟏. 𝐄𝐜𝐨𝐧𝐨𝐦𝐢𝐜 𝐏𝐨𝐰𝐞𝐫𝐡𝐨𝐮𝐬𝐞: China contributes 19% to global GDP and 48% to Asia's GDP, underscoring its pivotal role in the world economy 𝟐. 𝐆𝐥𝐨𝐛𝐚𝐥 𝐌𝐚𝐫𝐤𝐞𝐭 𝐈𝐧𝐟𝐥𝐮𝐞𝐧𝐜𝐞: China's market dynamics affect industries worldwide. Thus, understanding and engaging with China is crucial, even for companies not directly operating there. 𝟑. 𝐑𝐞𝐬𝐢𝐥𝐢𝐞𝐧𝐭 𝐄𝐜𝐨𝐧𝐨𝐦𝐲: Despite recent challenges, including issues in the property sector, China's GDP growth exceeded expectations in early 2024. This demonstrates the market's potential and the effectiveness of supportive government policies. 𝟒. 𝐋𝐨𝐧𝐠-𝐓𝐞𝐫𝐦 𝐄𝐧𝐠𝐚𝐠𝐞𝐦𝐞𝐧𝐭: Engaging with China involves a long-term strategic perspective. The economic ties and opportunities presented by China are vital for sustained growth and business success globally 𝐊𝐞𝐲 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬: • 𝐂𝐡𝐢𝐧𝐚'𝐬 𝐃𝐨𝐦𝐢𝐧𝐚𝐧𝐜𝐞: As a leading global economy, China’s market conditions and policies significantly influence global economic trends. • 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐈𝐦𝐩𝐞𝐫𝐚𝐭𝐢𝐯𝐞: Companies must consider engaging with China to stay informed about global market shifts and leverage growth opportunities. • 𝐄𝐜𝐨𝐧𝐨𝐦𝐢𝐜 𝐑𝐞𝐬𝐢𝐥𝐢𝐞𝐧𝐜𝐞: Continued economic growth and strategic government interventions in China present ongoing opportunities for international investors. • 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜 𝐂𝐨𝐦𝐦𝐢𝐭𝐦𝐞𝐧𝐭: Long-term engagement with the Chinese market, is crucial for maintaining a robust global business strategy. For those based in Hong Kong, this perspective reinforces the unique opportunities to leverage our position as a gateway to China. Engaging with China's dynamic market is not just advantageous but essential for global business strategy. #HongKong #China #GlobalBusiness #Asia #APAC

A good article by Gerard Lyons in today's business section of The Times newspaper called "Greater Challenges lie ahead for China's policymakers". What is clear is that the Chinese economy is facing challenges, but it goes without saying that in the past quarter of a century there have been multiple preditions of economic gloom. What we have to bear in mind is that China is the world's second biggest economy and its deep supply chains reflect its huge influence on the world stage. If China is to hit its 5 per cent growth target for 2024, it would add the equivalent this year of an eonomy the size of Poland, the 21st biggest in the world. You can read the article here: https://lnkd.in/e9-3P8rT

China’s export-led growth model is broken and Beijing may be at a loss to fix it: https://lnkd.in/e6UGxVUg #China growth model is broken.

This chart tells a story: by 2030, China is projected to control 45% of global manufacturing value-added, while the US share shrinks to just 12%. 🇨🇳 How did China get here? China invested aggressively in infrastructure, industrial policy, supply chains, and innovation, aiming not just to compete—but to dominate. 🇺🇸 What did the US miss? Decades of offshoring, underinvestment in infrastructure, and a lack of long-term industrial strategy left the US vulnerable. What must change? • Reinvest in advanced manufacturing. • Strengthen supply chains. • Prioritize R&D in automation. • Align public and private sectors with a clear industrial policy. The cost of inaction? A diminished economy, reliance on foreign powers, and weakened national security. The US still leads in entrepreneurship. But without decisive action, this gap will only grow. ❓ What do you think it will take for the US to reclaim its edge? #manufacturing #MakeAmericaMakeAgain #industrialpolicy

This is the road map for China through 2029. If you plan to vote for Kamala Harris read below what the ramifications are for our country. China will eat her up and control her leading to the downfall of the United States of America…. Kamala will giggle us all the way to a 2nd rate banana republic. Excerpts- While the Hegemon spent at least $7 trillion – and counting – on unwinnable Forever Wars, China is spending $1 trillion in an array of Belt and Road Initiative (BRI) projects across the Global South: the emphasis is digital/transportation connectivity corridors. Geoeconomic imperatives intertwined with rising geopolitical influence. Hegemon hysteria aside, the fact is the Chinese economy will grow by a whopping $1.7 trillion only in 2024. That is more than in all but the last three years – because of the Covid effect. And Beijing borrowed exactly zero yuan for this growth. The U.S. economy, by comparison, may grow by $300 billion in 2024; but Washington had to borrow $3.3 trillion for that to happen. https://lnkd.in/ga9bZddu

Join us on 19 April 2024 at 5pm for the "China in 2024 and its impact on businesses in Asia" event. China is changing in fundamental ways. For foreign investors, the China outlook is highly uncertain across growth, competition, policy, and geopolitical dimensions. In parallel US—China tensions continue to intensify and are bearing increasing influence on regional economies and markets. Almost daily, China-related news flows are heavy with potentially impactful developments, provoking many new planning questions one after the other. Business leaders are struggling to explain what is happening in China and where things are headed. For many companies, this is a subject of intense, even paralyzing internal debate and misalignment. This briefing will unpack the evolving economic and political-economy situation in China, the dynamics at work, and what the key trends portend for business conditions in China and for China engagement and geopolitical dynamics in the broader Asia region. This event is open to members and non-members and each ticket includes light refreshment after the talk. Register early at https://lnkd.in/giG63yJa to secure your seat. #networking #business

📉 Is China's Market Downturn a Crisis? Think Again! China's stock market has definitely seen better days, but panic might be premature. Despite facing challenges like a volatile property market and high youth unemployment, China remains a powerhouse with enormous growth potential. 🌏💹 Key Points: Geopolitical Stability: Recent summits between Presidents Joe Biden and Xi Jinping hint at improved U.S.-China relations, paving the way for a more stable geopolitical climate. Innovation and Investment: China is leading the charge in AI and robotics, with significant private investments and a surge in global patent applications. Government Initiatives: Tighter regulations on short selling and strategic fiscal policies are in place to strengthen the economy. This includes boosting liquidity and financing significant public housing projects. Economic Transformation: The shift towards a consumption-driven economy is on track, fueled by a growing middle class and a booming luxury sector. Industrial Strength: China's dominance in the electric vehicle market and robust exports further cement its status as an industrial leader. While it's easy to draw parallels with other emerging markets like India, China’s unique demographic and political landscape sets it apart. The current market conditions may look challenging, but they also offer ripe opportunities for investors looking to enter or expand in the world’s second-largest economy at attractive valuations. 📊🚀 #marvelsuccessworldwidelimited #property #propertyinvestment #realestate #UKPropertyDeals #AsianInvestorMarket #UKPropertyDeals #AsianInvestors #InvestmentOpportunities #BuildingTrust #RealEstate #GuideBook #SuccessStories 

If you have been around long enough, you will have your own experiences of history repeating itself. This here is one example. While many people, even in Europe, have admired China's state interventions in areas they deemed "good" and argued in favour of emulating them, others, like me, have been sceptical. Command-and-control economies always fail. They misallocate resources to achieve political goals, and they are bad at managing and harbouring talent, because creative people usually tend to be unruly, not well behaved. If you think one infallible leader can solve all problems, think again. We have been there many times, and it has never worked. This may be the beginning of a real problem in China. But gloating is misplaced, this would be a global problem, affecting all economies. Ultimately, only China itself can solve its problems - but not if the people are unable to get rid of bad leaders. #china #economy #trade #democracy https://lnkd.in/dEhZc86H

Home delivery in china

A couple of days in Shanghai and business meetings. China: A Giant with Feet of Clay? China's rise as a global superpower is undeniable, but its path is marked by a mix of formidable strengths and underlying weaknesses. While its economic and technological might are impressive, certain structural challenges raise questions about its long-term stability and business climate. Here's a closer look at the pluses and minuses of China as a global powerhouse and as a place to do business. --- Pluses (+) 1. Economic #Powerhouse: China is the second-largest economy globally, with a vast consumer market and a key role in global trade and supply chains. 2. #Infrastructure Leadership: The country boasts world-class infrastructure, from high-speed rail networks to advanced ports, and initiatives like the Belt and Road have expanded its global influence. 3. #Technological Innovation: With investments in AI, green energy, and 5G, China is positioning itself as a leader in future technologies. 4. #Manufacturing Hub: The "factory of the world" benefits from economies of scale, an extensive industrial base, and a robust logistics network. 5. #Geopolitical Influence: China's growing clout in international institutions and its expanding military capabilities give it significant leverage on the global stage. --- Minuses (-) 1. #Complex Business Environment: Foreign businesses face challenges including stringent regulations, intellectual property issues, and an opaque legal system. The government’s interventionist policies can add uncertainty. 2. #Debt and Economic Risks: The massive debt in the real estate sector (e.g., #Evergrande), combined with government and local authority borrowing, poses risks to financial stability. 3. #Demographic Challenges: The aging population and declining birth rates, a consequence of the one-child policy, are putting pressure on the labor market and social systems. 4. #Environmental Concerns: Pollution, water scarcity, and the impacts of climate change are significant hurdles for sustainable development. 5. #Geopolitical Tensions: Disputes over Taiwan, the South China Sea, and trade conflicts with the U.S. create uncertainties for investors and businesses. 6. #Social Inequalities: The rapid economic growth has exacerbated income inequalities, and strict government controls over information and civil liberties create latent social tensions. 7. #Market Access Challenges: Despite reforms, certain sectors remain highly regulated or closed to foreign investment. Localization requirements and bureaucratic red tape add complexity. --- China is both a land of opportunity and a challenging environment. For companies and investors, the rewards can be immense, but success demands deep market understanding, adaptability, and a tolerance for risk. As the world's attention remains focused on this economic giant, one question lingers: will China overcome its structural challenges, or will its "feet of clay" hinder its progress?