Supported by the Chinese Government, a chartered flight from the United States arrived in Beijing on Sept. 13.
Eighty-seven U.S. business executives and their family members were aboard the flight from San Francisco in California. It was organized by the American Chamber of Commerce in China, also known as AmCham China.
After arriving in Beijing, the passengers were transported by several buses to a designated hotel in Beijing, where they are spending two weeks in quarantine. According to news released by the Beijing Municipal Government, all the U.S. passengers tested negative for the coronavirus.
At a time when China-U.S. relation is almost freezing to ice, I must hail the significant action of AmCham China. It had worked arduously for several months on this special arrangement to get the American executives and their families back to China to continue their business operations.
China is a market too big to fail. All investors with global and strategic vision will certainly not give up the investment opportunities in the gigantic country. AmCham said that it has now on its membership list 4,000 executives from 900 U.S. companies that are operating in China. Most of the U.S. companies still remained profitable in 2019 in spite of the escalating trade friction between China and the United States.
As a matter of fact, in the process of economic reshuffling and industrial upgrading in China, it is a normal phenomenon for some foreign-funded firms to exit the country. Nevertheless, a recent report released by the American Chamber of Commerce in Shanghai revealed that most overseas companies remained stable in the Chinese market, with 78.6 percent of the respondents reporting no plan to change their investment locations.
China warmly welcomes businesspeople from not only the United States, but also the rest of the world. At a meeting held Sept. 14 via video link between Chinese President Xi Jinping and European leaders including German Chancellor Angela Merkel, European Council President Charles Michel and European Commission President Ursula von der Leyen, President Xi said that China and the EU should adhere to peaceful coexistence, openness and cooperation, multilateralism, as well as dialogue and consultation for the sound and stable development of their relations.
Also at the meeting, China and the EU leaders announced the signing of a bilateral agreement on geographical indications on food products. It will ensure that 100 famous EU agricultural food geographical indications, such as Mozzarella di Bufala Campana and Languedoc wine, get protection on the Chinese market. Likewise, 100 Chinese products, such as Kweichow Moutai and Yingde black tea, will also be protected in the EU, so as to ensure mutual recognition of agricultural traditions and products.
The confidence of foreign investors regarding China's growth prospect is not groundless. Statistics showed that, in August, China's economy continued its strong recovery momentum from the damage caused by the COVID-19 pandemic, trade protectionism and other uncertainties. China's industrial output increased by 5.6 percent in August, exceeding the growth rate in July by 0.8 percentage points. If such a momentum continues in the coming months, it is very possible that by the end of this year China can make up the ground that was lost.
Healthy August economic data in China also lifted the yuan to a 19-month high on Sept. 16. The central parity rate of the renminbi strengthened by 397 basis points on Sept. 16 to 6.7825 against the U.S. dollar, the highest level since May 9, 2019.
While the economic data is encouraging, it is still too early to rest assured. Frankly speaking, we must admit that China still faces mounting domestic structural problems and huge pressure to keep employment and the business environment stable. However, at least at present, the Chinese Government has recognized the daunting challenges ahead and shown its capability, vitality and resilience to cope with expected and unexpected difficulties, whether it is pandemic, trade friction, protectionism or any other external uncertainties.
(The author is the editor-in-chief of Shenzhen Daily with a Ph.D. from the Journalism and Communication School of Wuhan University.)