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China Europe International Business School Dean John Quelch on the future of China’s economy and relationship with the U.S.
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Investors keeping a close sire in China this week.
China set to release a number of economic reports as concerns about the the nation's economic strength are rising.
This comes after second quarter GDP growth in China.
Fell to seven point 6% I know.
Well the separate report at 6%.
That is the lowest level since the beginning of 2009.
Folks here would give a lot perhaps that right well joining me to talk about.
The effects -- say a Chinese economic slowdown gonna have on us John -- should be into the China Europe international business school the foremost business school.
In China good to have you about it it expert delighted up.
The economy seven point 6% sounds -- robust and very good here.
It's disappointing to the Chinese on some level but I would have to think -- mayor pretty happy -- right now if indeed that is the right number while.
The sources statistics issue in China but -- worry I think a pretty confident but it's between seven and 8%.
I think this obviously does represent a little bit more of a slowdown than previously anticipated but very robust.
And and the idea -- that China is now.
I mean the well documented -- broadly reported.
Attacks against the united states of secretary of state Clinton.
Or her comments in Africa -- which is our top end of which are both.
Nations are contesting for valuable natural resources.
Does seem to be.
Very.
Strong.
Responsible part of the Chinese.
I was an over reaction are we should we expect more of the -- Well I think festival this is the most important bilateral relationship in the world -- -- subside previously.
There's going to be inevitably swiping that occurs periodically from about one group or another.
In China vis a vis the US remember where in a leadership transition year in China.
As we are in the US and inevitably the rhetoric is gonna be raised on both sides.
But the one thing that I would point out.
Is that over the -- several years the level and frequency of contact.
Between the US government and Chinese Government officials has never been -- -- -- -- Rare but they're never been practiced many stresses.
The Chinese are really feeling their -- they're making -- dirt from various quarters not necessarily.
-- from the directly from the leadership.
But they're rather strong in their statements.
Not rising to -- capacity.
But the fact of the matter is -- it's getting to be a little bit of an edge there and -- to write an office to a transition to new leadership this fall.
You're satisfied that's all -- that well I think I think inevitably there is.
An edge to it.
You know on the one hand you have Chinese companies now going out of China.
Attempting to acquire.
Streaks or outright ownership of companies in the US and for that matter in Europe.
And and Canada are capex was one fifteen billion dollar deal -- -- -- one of the Chinese are owned oil companies buying.
Trying to buy it outright do you think -- go through you think it's very Smart of the United States.
Not to count -- in.
Against.
That takeover of resources in Canada because that's what amounts to him I mean I I personally think it will go through and I think it's a mistake to counter it.
There are obviously certain cases.
Well documented where -- Chinese company's attempt to acquire American firms and their own national security issues that are raised rupiah since he has problems this is not.
About level.
And I think that you have to remember Lou -- -- -- -- will not be quoted because I think that.
From a national security point of view we're principally concerned with the transfer all of technology.
But we have developed.
That is my least sensitive from the security when -- revealed when it's -- -- resources premier Wen told me yeah point four.
-- That the Chinese were most interested in USI technology above all other assets and possibilities right at the same top.
The their interest stand.
Basic resources and manifest right Andy it seems in congress that we would have.
Not object and would not insist on some adjustment.
And responsiveness on their part because they would never permit the United States or Canada to -- a Chinese company whatsoever period.
And for us to continue this sort of -- -- -- attitude that we adopt.
Toward what is after all our greatest creditor.
Is is so blindly.
Ignorant on our part.
And a and attitude and a position that -- Sustain itself -- malevolent let me say to a -- -- there -- many US companies that have acquired and to acquire.
Or take significant joint venture partnerships stakes in Chinese company I'm -- did -- -- -- -- -- -- A joint venture because what I really meant to say was they were buying an outright -- -- -- I understand understand what they're more than a noted don't respond to me with joint venture run I'm talking -- operation perfectly well no.
Taking ownership of a company okay.
But and they are can -- not in China because it sounds like your question in my statement while Coca-Cola has made an effort in China.
Pepsi has made an happened in China not -- but I -- -- please please look what you're -- guy but at the tube you're my understanding -- that I -- -- -- as -- an incorrect -- If you're telling me that -- -- United States companies -- going to China and by a company -- I think just say so not.
Okay thank -- -- we we do agree we agree on that please right.
But.
-- -- has probably thirty to 40%.
Of the foreign direct investment capacity.
-- variable over the next three to four years.
For investment worldwide -- now we can take the attitude.
That we have strong enough to -- -- on -- these investments.
But -- showing is slow launch just the launch its potential.
Growth export markets for US companies.
Why do not think that -- warnings.
To make.
Strong statements.
That.
We've -- -- -- gonna allow Chinese.
Companies I didn't and there are a lot -- that is -- -- -- -- but I do think it's really important for -- to understand.
That we are not operating with parity with the equity in the relationship -- we permit them.
Two because they hold -- Our dollars in hard reserves right to run over rostrum and seek to send our interest -- were volatile those that are Hasbro's I -- I've got to I've got to take heart break here all right fine thanks so much on -- -- -- -- -- -- the condensation.
