MILAN, Mar 9 (Class Editori) — Italian companies that will benefit from increased demand from the Chinese market in 2023 are getting more and more opportunities, driven by energy goods and an expected accelerating GDP. The economic recovery will continue and will drive Asia-Pacific countries such a Singapore, the Philippines, Thailand, and Vietnam. The figure emerges from SACE’s Map of Risks and Opportunities. Against a moderate increase in credit risk in China, which went from 48 to 50, there is still optimism over economic performance.
The document was presented in Beijing at an event organized by the Italian Chamber of Commerce in China and the insurance and export support Group led by Alessandra Ricci, with the participation of the Italian Embassy ICE Agency.
SACE has been operating in Asia since 2006, and in Shanghai since 2018, with the international network team that day after day creates opportunities, feeds the network and facilitates business opportunities for the Italian business fabric.
“The Ways of Italian Export to China” was an opportunity to delve into existing opportunities in the country thanks to the contributions of First Counselor and Head of the Economic and Commercial Office of the Embassy of Italy in China Marco Midolo, President of the Italian Chamber of Commerce in China Paolo Bazzoni, Head of SACE Office in Shanghai Donato Morea, Director of the ICE Agency Beijing Office and Coordinator of the China and Mongolia Offices Gianpaolo Bruno, SACE Chief Economist Alessandro Terzulli, SACE Country Risk Analyst Asia Pacific Claudio Cesaroni, Treasurer of the Italian Chamber of Commerce in China Lorenzo Riccardi, General Manager of Regina (Tianjin) Chain & Belt Co., Ltd., and Vice President for the northern Territory of the Italian Chamber of Commerce in China Fabio Antonello. The seminar was moderated by Renzo Isler, Secretary General of the Italian Chamber of Commerce in China.
It was recalled that China, despite the unprecedented economic and social costs, maintained a zero-tolerance approach to the spread of Covid-19 in the country for nearly three years. In fact, in 2022, the economy’s growth rate was among the lowest in 50 years (3%), with companies experiencing a slump in profits in several sectors, and the youth unemployment rate reaching about 20%.
After difficult years, the abandonment of the zero-Covid-19 policy in December 2022 finally restored optimism to China’s economic scenario. In fact, the country is expected to return to growth with pace in 2023, by 4.2% according to Oxford Economics and even more than 5% according to the International Monetary Fund (IMF), also aided by the expected boost from domestic consumption, given the sharp increase in the savings rate during the most acute phases of the pandemic.
The increased optimism to China’s economic performance also stems from the authorities’ continued stimulus policies, with infrastructure investment continuing to be a key driver of Chinese growth. In addition, the loosening of restrictions imposed in 2020 on real estate groups to limit their borrowing capacity is expected to support a faster recovery of the sector, which has been in a state of crisis since 2021 and accounts for about a quarter of the country’s GDP.
Although the adoption of these measures are positive for the growth scenario, they explain the moderate increase in credit risk in the country related to the impact of increased spending on the fiscal deficit and local Government liabilities.
Last but certainly not least, there are important current and future signals regarding opportunities in China’s energy sector. In fact, much of the increase in clean energy spending between 2020 and 2022 took place in China, where 60% of global electric vehicle sales are also concentrated. Therefore, the country remains among the areas of highest trend growth in renewables.
(Source:Class Editori)
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