American firms that continue doing business with China are facing several risks related to slowdown in the country’s economy followed by trade war and widespread political protests in Hong Kong. But that does not seem to faze them as they have received positive signals from the Chinese government that could help them get lucrative business deals in the world’s largest economy.
PayPal has signed on a license to provide digital payments across the country last month while BlackRock is tying up with local tech firm Tencent. In August this year JP Morgan Chase bank won an auction that will allow the bank to take control of its asset management services business in the country though final approval is awaited. Several other countries are strengthening their footprints across the country like Tesla that is building a massive factory in Shanghai to tap into the world’s largest market for electric cars.
This shows that despite challenges relationship between American firms and China is growing as the market of more than a billion people is an impressive customer base that they want to tap. President of American Chamber of Commerce in China, Ker Gibbs stated that corporate America is still very keen on Chinese market and business executives do not want to break relations completely. During AMCHAM’s annual summer survey around 77 percent of participants affirmed that they made money in China during 2018. Nearly half of them expect to invest money in the country while only a quarter of them talked about scaling back.
JP Morgan CEO Jamie Dimon told during an interview in March that China will become a developed nation within the next 30 years and its economy will be as large as the US. Though it has challenges like lack of transparency and corporate corruption they are willing to face these. Companies that manage to find a foothold in China, a country with population of 1.2 billion people, even a small percentage of national business is big money.