Chinese growth a boon for world

(Xinhua) Updated: 2015-08-05 16:25

The world's largest retailer announced on July 23 that it had acquired full ownership of Yhd.com after China lifted a cap on the number of shares that foreign firms are allowed to hold in Chinese e-commerce platforms in March. The company has been buying stakes in Yhd.com, a smaller version of Alibaba, since 2011.

"Walmart's move shows it is upbeat about the economy and market in China and the government's progress in opening up e-commerce," said an MOC spokesperson.

Amid fragile global recovery, China is rolling out measures to spur growth including establishing more pilot free trade zones (FTZs) and the Belt and Road regional trade and infrastructure network.

China opened three new FTZs in April in Guangdong and Fujian provinces and the northern city of Tianjin 18 months after the launch of China's first FTZ in Shanghai.

"We believe the FTZs and the Belt and Road Initiative will bring unprecedented business opportunities," said Deng Guojie, chief executive officer of Taikoo (Xiamen) Aircraft Engineering Co. Ltd, a joint venture founded in 1993 that offers airframe and line maintenance services.

The FTZ policies, based on reduced red tape and relaxed rules on foreign investment, have provided more room for Taikoo to expand businesses, especially chances with countries along the Belt and Road as 90 percent of Taikoo customers are from abroad, according to Deng.

Sam Walsh, chief executive officer of mining and metals company Rio Tinto, also expressed confidence in expanding businesses in China.

"We believe the urbanization in China will increase demand for iron ore and its large base means that growth should be substantial," China Daily quoted Walsh as saying.

The London-based global conglomerate, and also the second-largest Australian miner behind BHP, reported that annual sales last year of iron ore, copper and coal to China were more than 19 billion U.S. dollars, nearly four times sales in Europe.

China will be key to the company's fortunes in the years ahead, Walsh said, adding that the Chinese-Australian Free Trade Agreement signed in June will also help fuel supply as will the Belt and Road.

"Iron ore is a long-term business and we made our investment plans many years ago. We are confident about the future, especially in China," he said.

Dave Cote, chairman and CEO of technology and manufacturing multinational Honeywell, said during his visit to China in May that he is still confident of Chinese business prospects despite the economic slowdown.

These prospects will "depend on continuous evolution of the economy and how the government interacts with the economy," Cote told Xinhua.

"The track record in China is very good when it comes to evolution. It is one of the reasons that I am a long-term bull in China," he said.

Accompanying an economic slowdown are lots of adjustments going on in the Chinese system right now, including the anti-corruption campaign, state-owned enterprise reform, and the shadow banking discussion, Cote pointed out. China's evolution has been rapid, and the Chinese government has been evolving with the economy, according to the senior businessman.

The Chinese government has stressed environmental protection, vowing to improve air and water quality, which Cote said is "very consistent with the evolution of the economy" and also meant significant business opportunities for Honeywell.