Future stable growth is in the US, and China agrees

Chinese officials don’t really care about what presidential candidates like Donald Trump said about the so-called unavoidable confrontation, be it about geopolitics or trade, between China and the US. China’s Premier Li Keqiang stressed bilateral ties will progress no matter in the end who wins the laurel and serves as the next US president. Li also saw no contradiction with Beijing’s foreign and military policies in the Pacific but instead room for greater regional cooperation between China and the US plus its allies like Australia.

This could be just diplomatic rhetoric however there is growing investment dynamic that gives credence to China’s stance. Chinese parliament’s latest 5-year economic plan aimed to achieve 6.7-7% growth a year by 2020, meaning that this is a target rather than the continuation of the current growth trend that’s yet officially close to this level. At the same time, China’s big corporations have already started to seek more stable growth elsewhere, particularly in the US, confirming Cyceon’s assessment that while China may undergo some extended economic difficulties, it will seek to expand abroad.

The Los Angeles Times has listed 7 major US acquisitions by Chinese companies since 2013, mainly in the entertainment and tourism sectors. From a business viewpoint, China has engaged in a real win-win effort, possibly as an insurance that more economic interdependence will help to prevent / mitigate likely future aggravation in geopolitical tensions.