Credit Suisse is ‘very positive’ about China’s long-term growth

Credit Suisse CEO Tidjane Thiam is bullish on China, and sees opportunities as its economy shifts to a consumer-driven one — making it “less sensitive” to trade.

“We have very positive expectations about China long term,” he said at the Credit Suisse China Investment Conference in Shenzhen on Wednesday. “We believe that the fundamentals that have been driving China’s growth for so many years are intact.”

“There is … a shift of the Chinese model from a manufacturing, export-oriented model, to a more consumer-oriented, domestic-based economy, that will also be less sensitive to issues like trade,” Thiam added, flagging healthcare and technology as two sectors he believes in.

China is currently embroiled in a trade dispute with the U.S., which has led to both sides imposing tariffs on billions of dollars worth of each other’s goods. The world’s two biggest economies are currently trying to reach a ‘phase one’ trade deal, which has yet to be signed.

Amid those trade tensions, tariffs have hit China’s exports and its economy has increasingly declined, with the country reporting that third-quarter GDP grew by a slower-than-expected 6%. Its GDP has fallen sharply since the first quarter of 2018, when the trade war began.

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