China’s stimulus offers shot in the arm for global firms amid consumption, capital boost

Foreign firms have enjoyed a boost in consumption and easier access to capital as Beijing has rolled out stimulus measures over the last month

Reading Time:2 minutes

Tourists enjoy barbecue in Wuhan, Hubei province. Photo: Getty Images

Published: 10:00pm, 28 Oct 2024Updated: 2:57pm, 29 Oct 2024

Major foreign investors in China have seen a tentative uptick in consumer spending, easier access to capital and an opening for deeper change after China’s wave of economic stimulus over the past month, overseas business organisations said.

Some American retailers found Chinese customers spent more, while they also anticipated that it would be easier to access funds for new investments.

European companies in the world’s second-largest economy, meanwhile, view the stimulus as a step toward government spending that could further raise consumption and structural changes, which refer to more seismic shifts in a country’s business environment.

“One of the most significant changes our member companies have begun to observe is a rise in consumer confidence and spending,” said Harley Seyedin, president of the Guangzhou-based American Chamber of Commerce in South China.

The chamber, which has more than 2,300 members including multiple Fortune 500 companies, had discovered that American entrepreneurs can easily obtain capital due to lower interest rates, Seyedin added.

More than anything else, it’s important to use this time to take on direct structural reforms

Adam Dunnett, European Union Chamber of Commerce in China

“As a result, businesses can pursue larger projects that may have previously been on hold due to financial constraints,” he said.