European companies are stepping up investment in the United States as executives seek growth and stability amid the turmoil caused by the war in Ukraine and the tight locks to prevent the spread of Kovit-19 in China.
The US economy emerged strong from the epidemic, while Europe’s prospects for recovery were skeptical of the war in Ukraine. In addition, Beijing’s harsh zero Govt policy and regulatory repression of technology companies and credit problems in large real estate companies have raised questions about its commitment to economic growth. The emergence of the Chinese market in recent decades has led to huge growth and profitability for European companies.
Some European executives are considering a complete exit from China, but as its economy weakens, companies are reconsidering their investment strategies. For many, the United States is becoming a more attractive destination because of its relative stability and growth. “The United States has the potential for strong strategic growth,” Volkswagen chief executive Herbert Dice told reporters Wednesday.
Alexander Lasik, CEO of Pandora, told investors on Wednesday that the Danish jewelry company had bought 32 stores in the United States in recent months, mostly located on the West Coast, and had suspended plans to expand its operations in China. The company operates more than 200 stores in China. “In the current situation, there is no truth in investing too much in China. So now it looks like we are guarding the fort and we will have to wait for a while, ”he said.
According to a study by the European Union Chamber of Commerce in China and a consultation with Roland Berger in April, the wait-and-see attitude towards China is widespread among European executives. Nearly a quarter of respondents said they would consider moving current or planned investments from China, despite higher operating costs. “A more expensive and functional market is better than a relatively cheap but stagnant market,” Mayor Jர்க்rg Woodke said. (With international companies)
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