Scholars and businessmen applaud China’s economic recovery
Investors and businessmen point to signs of Chinese economic recovery
Investors are closely following the Chinese economic recovery model to understand how soon a similar could start in the United States. It is not yet clear how close America is to reaching a real peak in the incidence of coronavirus.
The latest blue-chip earnings reports from Western companies that have a large presence in the Chinese market are encouraging.
Leaders of major US and European multinationals talk about potential improvement in China. These statements and recent statistics give cause for optimism.
Levi Strauss reported earnings earlier this month. Chinese consumers start shopping again.
«Although traffic remains well below the previous year’s levels, we reopened all of our stores in China. Including our office in Wuhan», – said Chief Financial Officer Levi Strauss Harmit Singh.
He added that sales have consistently improved every week since store openings in March.. And digital sales of products have completely exceeded the indicators of last year for the same period..
Bank State street also noted that his operations in Hangzhou are returning to normal and about 80% of his employees in the region have returned to office work.
The Heat: China’s economic recovery
«Initially, all people were wearing masks, but now we are seeing a much more familiar work environment.», – said State Street CEO Ronald Philip Oh&# 39; Hanley.
At the same time, the temperature of employees is still measured before entering offices..
Even construction equipment maker Caterpillar, which reported a massive drop in sales from Asia during the first quarter, is starting to see signs of a recovery in demand..
However, it is not yet clear if the pandemic is no longer a threat to China.. Many of its major trading partners are just now starting to feel the worst negative impact of the Covid-19 outbreak..
This is the key reason why economists at Moody&# 39; s predict that China’s economy will grow by only 1% this year. Growth will be limited precisely by the weakness of the country’s main trading partners, Moody believes&# 39; s.
At the same time, the agency predicts that the Chinese economy will recover by 7.1% in 2021..