BEIJING, June 29 (Xinhua) -- Mercedes-Benz looks to be heading for double-digit growth this year in China, the world's largest auto market.
Ni Kai, president and CEO of Beijing Mercedes-Benz Sales Service Co., Ltd., said that the company is confident of its performance in 2014, after over 23,000 Mercedes were delivered in May, up 30 percent year on year.
This optimism is not rare among foreign firms, despite an apparent economic slowdown, or -- as President Xi Jinping puts it -- a "new normality": slower growth, structural reform, no big stimulus.
A business confidence survey by the German Chamber of Commerce in China this month showed 90 percent of business planning to keep or expand their business this year, with nearly 60 percent hoping to achieve or exceed their targets. In terms of reform, 70 percent are optimistic, saying domestic consumption, environmental protection, and emphasis on the market will be good for business.
Another Chamber of Commerce, this time the Americans in Shanghai, expect one fifth of American companies chose China as their "first investment destination", and 48 percent plan to increase investment here.
Confidence in the economy comes from an increasing number of middle-income consumers and stable growth in second and third tier cities.
Disney's plan to increase investment in their Shanghai project and a joint venture between Microsoft and BesTV in the Shanghai Free Trade Zone are signs of foreign companies' inclination to invest.
Jin Yuanpu of Renmin University believes consumption is shifting from basic daily needs to the higher end, particularly services, and growth potential is far from exhausted.
A research note from the Peterson Institute for International Economics said that Chinese leaders may be willing to accept slower growth as long as labor market indicators look stable and only structural reform can ensure a healthy labor market.
This analysis is broadly correct, and a welcome sign of better management of the economy.
News Analysis: Globalized RMB to stabilize world economy
BEIJING, June 27 (Xinhua) -- The globalization of the yuan, or renminbi (RMB), will not only benefit the Chinese economy, but generate global economic stability, a senior banker has said.
The yuan did not depreciate during the 1997 Asian financial crisis or the 2008 global financial crisis, helping stabilize the global economy, Tian Guoli, chairman of the Bank of China, said at a forum in London last week, according to the Friday edition of the People's Daily. Full story
China, Britain vow to enhance cooperation in finance, RMB business
LONDON, June 18 (Xinhua) -- Visiting Chinese Premier Li Keqiang said here Wednesday that China and Britain will work together to lift the bilateral financial cooperation to a new height.
Li made this remark during a speeh at the Britain-China Financial Forum, co-hosted by the People's Bank of China and British Finance Ministry. Full story
China Focus: Chinese talent comes back for business
WUHAN, June 26 (Xinhua) -- Chen Jian, a rail transit development research fellow at the National University of Singapore, wants to return to China to make his fortune.
Chen attended the 14th Conference on Overseas Chinese Pioneering and Developing in China this week in Wuhan, capital of central China's Hubei Province. The Conference is an annual event for overseas Chinese to exchange business ideas and projects. Full story