TOKYO, Aug. 5, 2021 /PRNewswire/ -- Economists at JC Fulton Alliance say recent data on China's economy highlights the draw to business operations by foreign companies despite the restrictions imposed on them. In the second quarter of this year, economic output in China increased 7.9% year on year, a growth unheard of in the current economic climate but significantly less than the previous quarter growth of 18.3% on last year results.
However, JC Fulton Alliance economists noted that the previous quarter results are inflated due to lockdown restraints imposed that time last year in 2020 at the onset of the pandemic. They pointed out that 7.9% growth is well above initial estimates and sets China on a trajectory to surpass their annual growth target of 6%.
JC Fulton Alliance economists believe that the recent economic growth could be reason enough for foreign multinational companies to keep a solid footing in China, despite volatility in regulative policies, market access constraints, human rights violations, and challenges with respect to the protection of consumer data and intellectual property. Examples of these challenges are laden in mass media over the past year; with major labels facing boycotts as a result of the stances taken against labor conditions in China to name but one.
However, the world's second largest economy remains an area of high growth potential, with a steadily growing middle class and luxury market. The volume of the Chinese consumer base and the exponential growth it is experiencing makes it far too enticing to negate.
In recent years, China has pledged to improve the business environment for foreign multinational companies, promising better access to trade and investment and JC Fulton Alliance economists believe this has gone some way to increasing the appeal of doing business in China for many foreign businesses and investors.
SOURCE JC Fulton Alliance