China investment drowns out decoupling rhetoric
10/04/2023 16:18
(The author is a Reuters Breakingviews columnist. The opinions
expressed are their own.)
MUMBAI, April 10 (Reuters Breakingviews) - International
companies are reinforcing President Xi Jinping’s message that
China is open for business. It’s a brief comfort for investors
fretting about whether and how the country will fit into world
trade given its soured relations with the United States.
Japan Display’s 6740.T shares soared 21% on Monday after
the Apple AAPL.O supplier said it would provide its OLED
technology to China’s HKC. The duo will construct plants for
displays used in autos, wearables and other products. A day
earlier, Tesla TSLA.O committed to building a factory in
Shanghai that churns out 10,000 Megapack battery units a year,
equal to about 40 gigawatt hours of energy storage, to ship
globally. And Europe’s Airbus AIR.PA just moved to double
capacity in China, agreeing to push ahead with a second China
assembly line despite failing to win any new orders during
French President Emmanuel Macron’s recent state visit.
The new commitments provide a reminder that multinational
companies are making – and want to make more – money in the
People’s Republic. Three-quarters of those surveyed by the
American Chamber of Commerce in Shanghai generated a profit in
the world’s second largest economy in 2021. The European Union
Chamber of Commerce in China paints a similar picture. At least
some of the decoupling rhetoric is being drowned out. (By Una
Galani)
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(Editing by Jeffrey Goldfarb and Amanda Gomez)
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