China faces slow road to economic recovery despite border reopening
Of foreign businesses are gearing up for travel into China following the country’s surprise relaxation of a strict covet travel restrictions and Border controls uh business groups and analysts say this could help boost foreign investment but as elevation reports China’s post-covet economic recovery could still take some time.
It’s full steam ahead for staff at this migration agency in Beijing the Singapore headquartered company has been ramping up preparations after China announced it would scrap lengthy quarantines for inbound Travelers and relax other travel restrictions from January 8th is expecting a 30 to 50 percent boost in business this year as.
Clients are able to visit destination countries more easily and Company leaders resume regular business trips to China after the Chinese New Year because I know I know that uh um the face-to-face value is really very important and I and I know some of the clients they really want to hear from like maybe myself or some of my.
Colleagues here in Singapore Mr Chang said business had taken a hit in the initial stages of the pandemic forcing the company to shut three of its five offices in China and layoff staff it also had to stop in-person seminars which are used to hold fortnightly prior to the pandemic Mr Ching is hoping some of this can resume but also to.
Personally assess how China has changed in the last three years I think the the business model will have to change yeah so I don’t know whether having like a large War people in a single room whether they will still work in China um of course we have to test it out the foreign business groups say China’s reopening had been highly anticipated.
And will boost business confidence it would also help in getting more investments into the country if you can’t have Senior Management come it makes it very hard um to get the attention for additional investment number two there’s a lot of concerns about Supply chains and there’s a lot of concerns about U.S China.
Relations when you can have people come and have face-to-face meetings People to People exchanges that will really help but it could take some time for China’s economy to recover as China still grapples with the impact of its sooner than expected relaxation of zero covet measures while life and consumption slowly.
Returns to normal in big cities like here in Beijing where Health officials say infections are part of this peak and the experts I’ve spoken to those say that this covet wave is far from over as the virus is expected to spread to smaller cities and rural areas especially as people start to travel home to celebrate the upcoming Spring.
Festival later this month a quick recovery though can be expected once the situation comes under control say experts with many adjusting economic growth forecasts for 2023 upwards to above five percent although more policy support is still needed it just looks like the timeline is quite unclear before the two sessions in March.
We don’t anticipate any major policies coming out now it seems that the monetary policy and fiscal policy have both been quite conservative and the lack of liquidity in construction in real estate is still quite widespreading but miss Wong says there could be other challenges as the global economic Outlook remains gloomy for 2023 with the.
War in Ukraine continuing with no end in sight even for the U.S economy which is a major destination for China’s exports is slowing down uh in a significant way so that means uh when China is in full recovery probably later this year there wouldn’t be enough demand from overseas Market this also as China continues to Grapple with other economic challenges.
Like it’s struggling real estate sector elevation CNA Beijing