Global investors and companies are looking forward to riding the wave of China's burgeoning high-tech sector as China's economic growth and technological advancements have opened a world of opportunities, said an analyst from the United Arab Emirates (UAE) following the just-concluded third plenary session of the 20th Central Committee of the Communist Party of China (CPC).
The CPC Central Committee held the session in Beijing from Monday to Thursday and adopted a resolution on further deepening reform comprehensively to advance Chinese modernization.
In an interview with the China Global Television Network (CGTN), Jameel Ahmad, chief analyst at GTC Group, a global broker of financial derivatives, said with the Chinese economy focusing more on technology and high-end manufacturing, it will bring boons to foreign companies.
"We've seen a lot of progress and a lot of evolution right now in the Chinese economy. While maybe before you look to China as an economy that would produce low-cost goods that can be shifted overseas and so forth. While if you look at it more now that the structure of the Chinese economy, there is more focus on tech and high manufacturing jobs. And this suggests a lot about how China's economy is going to continue to evolve and in some ways try to compete with the U.S. when it comes to a major technology power of the world, similar to Silicon Valley. I think that's why investors are looking for over the longer term and one of the advantages as well is that following the conclusion of this meeting, it is expected that major executives from top companies globally will visit China for more talks about how they can help contribute to these targets," the analyst said.
The reforms discussed at the third plenary session have garnered significant attention, particularly due to their potential impact on both domestic and international economic growth.
Ahmad highlighted the significance of these reforms and emphasized the desire of international investors to see further opening up of the Chinese economy.
"Before we were looking at more of a 2015 China plan, which was unleashed nine years ago. I think much of that plan is actually being achieved. But this makes sense more about setting the stone and the framework for how the rest of the 2020s can progress for the Chinese economy. And clearly, the international environment, the international investors are still expecting China to remain as a major economic power and also a major trading partner. So much of the world economy is extremely sensitive on demand from China. That's because of how much the Chinese economy has progressed over the past couple of decades. I think that moving forward, investors do want to see further reforms, further stimulus, and they want to see further opening up of the Chinese economy. Not because the Chinese economy doesn't have the potential, but it's because international investors also want to be in China, in the mainland for the longer term, which is why issues such as what's happening with the currency, whether the currency can be freely flow in the future as well as how the Chinese invest in infrastructure and that standardization will be put in place. That's why it's very important for everybody," he said.
Global investors, companies look forward to engaging with China's burgeoning tech sector: UAE analyst
Global investors, companies look forward to engaging with China's burgeoning tech sector: UAE analyst
