Advertisement
Opinion | As China’s economy reboots and its global influence grows, Hong Kong stands to benefit
- Beijing’s pivot from its zero-Covid strategy is expected to boost the global economy in 2023 as the nation’s geopolitical clout grows under Xi Jinping
- Hong Kong, in particular, could gain greatly from increased investment, improved business confidence and an injection of foreign capital
Reading Time:3 minutes
Why you can trust SCMP
6
As the world slowly recovers from the Covid-19 pandemic, China is poised to play a crucial role in restoring global economic stability. After nearly three years of stringent lockdowns and border curbs, Beijing’s pivot from its zero-Covid strategy is expected to inject much-needed vitality into the world economy in 2023.
Advertisement
China has been out of sync with the rest of the globe during the pandemic, impacting global supply chains and adversely affecting trade and investment flows. All of this is projected to change as the country’s reopening is anticipated to stimulate economic growth, enhance corporate profits, reduce youth unemployment rates, alleviate energy shortages and lower inflation.
Consequently, due to its sophisticated technological capabilities, as well as efficient manufacturing infrastructure, China is expected to become a valuable contributor to the revival of the world economy. Although there may be some initial setbacks, China’s reopening is expected to benefit Hong Kong, a major international financial centre, as well as nations around the world that primarily rely on trade with China.
The economic reopening has the potential to amplify China’s already significant global influence. Some of the world’s most valuable companies are now headquartered in China; Chinese companies produce a large variety of merchandise that is in high demand worldwide.
Over the past four decades, China experienced massive economic expansion. Now the world’s second-largest economy, it is expected to surpass the United States as the world’s largest by 2030.
Advertisement
President Xi Jinping’s Belt and Road Initiative, which seeks to promote international trade through infrastructure projects, has facilitated this growth. The initiative has resulted in increased investment in Southeast Asia, Africa and Latin America, as well as the establishment of new markets for Chinese products.
Advertisement