What happens when China's economy slows down - Ben Cavender

Ben Cavender

The effects of a slowdown in China's economy on foreign companies might vary, on the industry they are working in and on their size, says Shanghai-based business analyst Ben Cavender to Reuters. Smaller firms might close down, while larger ones try to diversify over time, he adds.

Reuters:

Growth in the stickier foreign direct investment (FDI), however, has been trending lower. Net FDI, as per Nomura estimates, will more than halve this year to $40.3 billion. 

Ben Cavender, Managing Director of consultancy China Market Research Group (CMR), said that although it would take time for big global firms to diversify part of their capacity out of China if the trade war drags on, smaller players will more likely shut their China business. 

“Any time you have government policy frictions like this, it tends to slow down FDI and so I think that’s the reality. The other reality is that the Chinese economy is slowing down, and so is the return on investment,” he said.

More at Reuters. Ben Cavender is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

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Slowdown and reducing debts go hand in hand - Jim Rogers

Jim Rogers and his daughter Happy

China's economy is going through a reduced growth and, says investor Jim Rogers, that might be an excellent idea as the country has to bring back its debts, he says on his weblog. 'China's economy is slowing, fortunately for China and fortunately for the world."

Jim Rogers:

China's economy is slowing, fortunately for China and fortunately for the world. When anything goes straight up without a pause is going to have a huge crash someday. The situation, the way I read it, well, you know what's happening with Trump, you know what's happening with the trade war and things of that sort. But also China has built up a lot of debt in the last decade or so and the government is now insisting, demanding and forcing people to start reducing their debt. When you go from adding debt to reducing debt, you're obviously going to have a slowdown. That's my assessment but I'm sure there are other things going on as well.

More at Jim Rogers' weblog.

Jim Rogers is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

Are you looking for more strategic experts at the China Speakers Bureau? Do check out this list.