Chinese economic rebound helps to stabilize US companies
Published: 10:55 AM, 22 October 2020 Updated: 10:56 AM, 22 October 2020
The economic jump back of China has become a bright spot for some multinational companies of the United Nations that have seen domestic revenue fall amid the coronavirus pandemic.
According to the National Bureau of Statistics data released on Monday, China’s GDP expanded 4.9 percent year-on-year in the third quarter which is a positive figure that far surpassed the recent performance of other major economies.
Such economic strength has helped backstop some Western companies’ bottom lines.
Strong retail sales increase in China during the third quarter continued its international business at a time when around 300 of the US-based company’s locations worldwide were closed due to the pandemic, said Domino’s Pizza.
Richard Allison, CEO of Domino’s Pizza, called China a great success story earlier this month, reports The Wall Street Journal.
Allison said, we’ve had some slowdown in some of the markets across the world, but China is certainly not on the list. Besides, the CEO has expected that China would soon be the company’s largest market outside the US.
Another Maryland-based spice maker company named McCormick & Co stated that while global sales fell 1 percent, the demand from China has not ended.
Meanwhile, Ford Motor Co’s said China sales rose 25 percent in the third quarter, the company said on Friday.
According to General Motors Co, vehicle sales in China have increased 12 percent in the third quarter while the Michigan automaker’s second consecutive quarterly sales rise in the world’s leading auto market at this time.
General Motors said in a statement that the sales rose 26 percent for General Motors cars in the third quarter year-on-year.
In comparison, footwear maker company Skechers has increased its sales 11.6 percent in China and at the same time, the California Company’s second-quarter sales were down 42 percent overall.
According to the latest forecasts by the International Monetary Fund (IMF), China’s GDP is expected to rise 1.9 percent this year.
Tom Fowdy, a British international relations analyst focused on Asia, Twitted, “China’s GDP number is that not only is it the only major economy growing, but it’s also the only major economy which has managed to reverse all the coronavirus damage within the year, which many countries will not be able to achieve by the end of 2021.”
Rob Subbaraman, global head of macro research at Nomura Holdings in Singapore, praised China as saying China’s rebound is an encouraging and hopeful message for the rest of the world. If anyone successfully handles the health crisis, then the economy would also recover, reports Bloomberg.com
On Monday, in a video meeting with the delegation of the US-China Business Council, Xiao Yaqing, Chinese Minister for Industry and Information Technology said China welcomes US companies to actively participate in its market.
US executives also participated in the meeting, along with leaders from the business council.