Joe Cash covers domestic Chinese fiscal and monetary policy, key economic indicators, and trade relations. Before joining Reuters, he worked on U.K. and E.U. trade policy across the Asia-Pacific region. He studied Chinese at the University of Oxford and is a Mandarin speaker.
U.S. furniture company head Jordan England thinks his firm’s Chinese suppliers are among the best in the game. Still, geopolitics and a slowing economy have pushed him to source more products from Southeast Asia, Eastern Europe, and Mexico. “I’m looking to move away from it (China),” said England, CEO and co-founder of Florida-based Industry West.
China has a lot of work to do in winning back Western investors. Premier Li Qiang’s overtures declaring China open for business have been met with skepticism in boardrooms worldwide, particularly given a murky capital market outlook and lingering concerns over past regulatory crackdowns on high-growth industries.
While many Chinese companies remain the top suppliers for foreign investors, those that are not are catching the attention of Western investors. London-based hedge fund Aspect and Paris-based investment manager Metori are planning to launch funds for their respective clients that will exclusively invest in Chinese assets next year. These funds are expected to use China’s new futures trading law, passed last year, which standardized the rules governing futures markets on different exchanges.
This law was seen as a significant step to bringing legal certainty when a counterparty defaults on a bespoke derivatives trade, which has long been an issue for many foreign managers operating in the country. Aspect and Metori declined to comment on their plans.
Even as the global economy slows and trade tensions rise, China has been relatively resilient, growing by around 5% in 2024 and aiming to double its economy’s size by 2035. But a recent survey of global chief executives by The Conference Board found that demand in China has yet to return to pre-COVID levels, and 40% expect to cut jobs over the next six months.
