Chinese tie-ups ‘the best bet’ for foreign firms as growth slows
US report says Chinese demand for overseas goods to wane as economic growth continues to ease and the industrial sector declines
Offshore companies will have to cement their tie-ups with mainland partners to tap potential in China as growth in its economy continues to slow.
Analysts offered the assessment after a San Francisco Federal Reserve Bank research report released on Tuesday said China’s appetite for foreign goods would decline amid the slowdown.
The report said demand from the China’s rising service sector would not be enough to offset the decline from the fading industrial sector.
“The strength in the service sector is unlikely to provide much support for countries that export commodities to China,” San Francisco Fed economist Mark Spiegel wrote in the report.
That is bad news for commodity exporting countries like Australia and Brazil, but could also indirectly affect countries like the United States and Japan.
The Fed is watching China and the global economy closely, and in September delayed an interest rate hike in part because of concern over the slowdown abroad.