Adriel Chan, director of the Better Hong Kong Foundation, a leading private think tank in Hong Kong, said European political and business communities are increasingly concerned about Russian influence in the continent and that European leaders are more willing to cooperate with China as a countermeasure.
“I was surprised to see that even in France and Germany there is an existential fear of the conflict in Ukraine,” Chang said, recalling discussions he had during a visit to Europe in early May as head of a delegation organized by the foundation. “When you’re in Asia, it’s just not conceivable that Russia might try to shift the war to Western Europe.”
“The nice surprise is that they’ve taken a level-headed approach to Europe’s relationship with China,” Mr. Chang said in his first interview since taking over as chairman. “They recognize that China is an integral and important part of not only the global economy but also their own economy, and they want to remain engaged.”
“The aim is not to change global capital flows overnight, but to inform and educate decision-makers about the situation in Hong Kong,” Chan said.
The Better Hong Kong Foundation was founded in 1995 by Hong Kong’s leading business and community leaders, with trustees including property tycoons Li Ka-shing, Li Shau-kei and Ho Chau-hing.
But Chan said they feel they need to wait for other tensions, including the Ukraine conflict and the Gaza conflict, to end before making any major new investments.
“They’re worried about two wars, but they’re also worried about a domestic rightward shift across Europe,” he said. “They’re very concerned about their own economic policies and jobs, especially in relation to China.”
“It’s really their own competitive advantage. They really need to open up and solve their own problems before they’re ready to invest heavily outside.”
The Chinese government has threatened retaliatory measures against the tariffs through state media and business channels.
Large companies, including automakers and fast-moving consumer goods makers, have made big profits in mainland China for years and recognise the importance of the market, Zhang said.
“Even though domestic consumption has slowed down a bit, big companies are still happy to operate in China,” he said. “They still want to be in China. They’re [us] What geographical areas should we expand in mainland China?
According to Bain & Company’s latest China Luxury Report, released in January, China’s luxury market is expected to grow at a mid-single-digit pace in 2024, following an overall recovery last year.
Large luxury brands are aware of the impact of the economic downturn following the spread of COVID-19, but they believe the slowdown is to be expected.
“I don’t think they’re unhappy with the way China is doing,” Chang said. “Everyone we’ve spoken to recognizes that the Chinese economy is going through a macro cycle, and looking at everything together, they don’t think the slowdown is going to be permanent.”
Sources have noted that stock markets in mainland China and Hong Kong have hit bottom in recent weeks, with “significant” declines in share prices suggesting it may be time to reconsider Chinese stocks.
“This was literally happening as we were going around Europe, as people started reinvesting into Chinese stocks, mostly large caps and tech stocks,” Chang said. “That said, I don’t think the avalanche has started yet. But hopefully, [are going] In the right direction.”
.
