Source: Finance Association

From May 23 to 24, the 20th J.P. Morgan Chase Global China Summit was held in Shanghai. In an exclusive interview with the media, Sjoerd Leenart, CEO of J.P. Morgan Chase Asia Pacific, said that China, as the world's second-largest power, cannot be marginalized, and investors “must do business there.”

He added that many international companies are still investing in China, “China is a very important place... we will be here for the next 100 years.”

Since it was first held in 2005, the J.P. Morgan Global China Summit has become one of the most influential annual conferences for business leaders in China. According to reports, this year's J.P. Morgan Global China Summit attracted more than 2,500 participants from 33 countries and regions and 1,300 companies, including J.P. Morgan Chase CEO Jamie Dimon, Bill Gates, etc.

China is influencing every industry in the world

In terms of purchasing power parity, China currently accounts for 19% of global GDP and 48% of Asia's GDP.

“You can't ignore it; you have to do business here, and even if you decide not to do business here, you need to know what's happening here,” Leenart said. “What's happening in China “affects every industry in the world.”

Given China's extensive links with the global economy, Leenart emphasized that to have a thriving investment banking business, it is necessary to carry out “good business activities” in China.

“If China doesn't work, the banking industry in Asia will never be able to run at full speed,” he said.

In April of this year, official data released by the National Bureau of Statistics showed that China's economy grew faster than expected in the first quarter. GDP grew 5.3% year over year, not only faster than the previous value of 5.2%, but also higher than many economists' expectations.

Leenart said there are now more and more signs that China's economy is growing strongly. This gave investors hope and confidence. “I think investors have been encouraged by many early signs.”

China's trade position needs to be viewed from a long-term perspective

In March of this year, the State Administration of Foreign Exchange stated that in recent years, foreign direct investment absorbed by China has fluctuated. In 2021, China's balance-of-payments foreign direct investment (FDI) reached a record high, but fell from a high level in the next two years.

Leenart believes that although foreign direct investment into China declined last year, people must look at the issue from a longer-term perspective.

He pointed out that over the past 50 years, China's foreign direct investment has been growing, and people must consider the issue in this context: “Every market is likely to slow down temporarily.”

According to the Wilson Center, an American think tank, China is still the largest trading partner of more than 120 countries around the world.

“I think [China] has a lot to sell to the world, and the whole world needs Chinese products,” said Leenart. He saw many opportunities in China. “We've been here 103 years. So we have taken a long-term view of China, and we will be here for the next 100 years.”

In 1921, J.P. Morgan Chase's predecessor, J.P. Eastern Banking Corporation, opened a branch in Shanghai. In 1930, Equitable merged with Chase Bank and continued to operate in Shanghai, Tianjin, Hong Kong, etc.

editor/tolk