CGTN Europe spoke to Chen Jiahe, Chief Investment Officer at Novem Arcae Technologies.
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00:00I've been speaking to Chen Jiahe, the Chief Investment Officer at Novum Archive Technologies.
00:05Well, when we look at the trade war that is currently, you know, started by the Trump administration with many countries,
00:13China is definitely affected. And if you look at the service sector, the trading of the service sector is definitely affected.
00:20But this impact is still, you know, controllable. If you look at how quick China's economy is currently growing.
00:28I mean, if you look at the trade between China and the United States, that's about 11 percent of China's total international trade.
00:35And if you consider a very extreme situation that, you know, maybe, for example, because of the high tariff, then this reduces by 50 percent.
00:44This means about 5.5 percent deduction to China's global trade, including the service sector.
00:50But if you look at the growing speed of China's global trade, that's about 3 to 5 percent every year.
00:56So this means this deduction will be repaired within just about one year and a half, given the fact that China's growth is currently pretty fast.
01:05So China's service sector already attracts a lot of foreign direct investment.
01:09And there's been a suggestion now that they could open up app store services to more of that kind of investment.
01:15What kind of difference could that make?
01:16Well, when we look at the app service previously, most of them are owned by the Chinese companies.
01:25And this is now welcoming more foreign investment.
01:28And that includes many other sectors.
01:30I mean, not only the app sector.
01:32And if you look at China's policies in the past many years, I think past the 5 to 10 years,
01:37you can see that China is opening more and more of its local sectors, local industries to global capital.
01:43Currently, there are much less things that foreign capital can't do in China.
01:48This list has been reduced.
01:50So it's much more jobs that they can do here, much more programs that they can put their money to.
01:54So this increased a lot of foreign investment to China.
01:57They started to look at China.
01:59And this also gives Chinese capital more chance to go to the global economy because they have more cooperation with foreign capital here.
02:07And after a very friendly cooperation, a profitable cooperation, they say, OK, why don't you come over to our country?
02:14So this really increased the trade between China and many other countries.
02:18And how could all this, do you think, help re-energize consumption?
02:22Well, this is pretty important to China's consumption because when China's economy, when China's government and authorities are looking at the consumption, the domestic consumption,
02:34we don't say that we close our doors and our consumption will increase, bring jobs back to China.
02:39We never say that, you know.
02:40So we actually do understand if you want to have a prosperous local consumption market,
02:46you have to get everyone around the world to come in and join in your consumption market.
02:50You have to communicate with the rest of the world.
02:52I mean, look at how the global economy has been developing for the past 150 years.
02:57The global economy grew because many countries are participating into the global trade.
03:02So this means that the more foreign capital we have in many of China's sectors,
03:08the more foreign funds are coming into China, the more foreign businesses are coming into China.
03:13This will mean that we have a consumption economy that is growing larger and larger.
03:17And currently, if you come over to China, you can see quite many foreigners actually consume over here.
03:23So there's many people coming over, of course, with the businesses as well.