US firms bullish on future of China market
Caterpillar, Micron among those keen on enhancing their presence in nation
US business leaders remain bullish about the long-term prospects of the China market, as the country vows to further open up despite headwinds.
Some of them have considered further strengthening their companies’ presence in China within the next few years, the executives said in recent interviews with China Daily.
US machinery giant Caterpillar Inc sees good long-term prospects in the market, and plans to launch more products and services for local customers, said Ramin Younessi, the company’s group president for construction industries. He said Caterpillar is “very committed” to China, and has a strong team for the long run in the market.
Micron Technology Inc, the Boise-based semiconductor giant, and F5 Networks, the Seattle-headquartered company in multi-cloud application services, are planning to advance their capabilities in China, according to their global heads.
Their remarks came amid rising concerns that the trade tariffs and investment restrictions that China and the US imposed on each other may impede their companies’ commercial cooperation.
China will open the market even wider, according to the newly released government white paper, “China’s Position on the China-US Economic and Trade Consultations”. Measures to be taken include expanding market access for foreign investment in broader areas, and strengthening international cooperation on intellectual property protection, the paper said.
Sanjay Mehrotra, CEO of Micron Technology Inc, said the company is moving forward to advance its capabilities in China. He said the long-term trend of rising demand for memory and storage is exciting, and will make possible revolutionary technologies.
Francois Locoh-Donou, president and CEO of F5 Networks, said the company is considering to hire more technical specialists, service and sales staff in China within two years, and probably to deploy more development resources.
He said he expects “a large opportunity for growth” in the market, as more customers are going through digital transformation.
These executives said they are hopeful that China and the US can come to a positive resolution that’s win-win for the two sides and the rest of the world.
The government white paper, released on Sunday, said the two countries’ disputes and conflicts on the trade and economic front need to be solved through dialogue and consultation. Striking a mutually beneficial and win-win agreement serves the interests of China and the US and meets the expectations of the global community.
Sang Baichuan, director of the Institute of International Economy at the University of International Business and Economics, said the escalating trade tensions have been exerting a negative impact on the Sino-US economic and trade ties and weakening the global economy.
The white paper pointed out that it is clearly wrong for the US government to escalate the trade friction, and China will stick to the bottom line and will never give in on the major issues, Sang said.
“It is still possible for the two side to reach an agreement on the premise of mutual respect and treating each other as equals,” he said. He added that the worst possibility was that the US would fire a trade war with the rest of the world under the principle of “America First”.