Posted: Mar Oct 2022, 20:26
Last updated: Tuesday, October 2022, 20:32
Michael Pettis, a longtime Beijing resident and senior economist at the Carnegie Endowment, considered one of the most sensible experts on the Chinese economy, recently published the effects of a Pew poll that found that a majority of Europeans surveyed “look like China is the dominant country in the world. “Economic powerhouse”.
This perception runs counter to actual data, which shows that the United States has a GDP of about $6 trillion more than China, as well as the world’s largest stock market, the world’s most dominant currency, and the richest people.
“Do you think China is the largest economy in the world or is there a reason?” asks Pettis.
Among the answers, that of Andrew Haynes, a Canadian who works in the energy sector. “They see primary (acquisitions) and investments through Chinese firms, and they see significant sales of commodities similar to China, in and from their countries, and equate it with economic dominance,” he wrote.
In Italy, for example, citizens see China as the dominant economic force after buying economic and cultural icons like Pirelli tyres and Milan’s Inter football club from Chinese buyers. Investor Li Yonghong ended in failure, but he made headlines for months, no doubt further fueling the belief that the Chinese are the world’s leading economic force.
And if the source of perceived economic dominance is customers’ goods on store shelves. The looming energy crisis in Europe, China may be the powerhouse. According to the official China Daily newspaper, there has been “explosive growth” in exports of heaters and other heaters. generation of products to Europe.
“Statistics from AliExpress, Alibaba’s business-to-customer site that sells customer products in markets, showed that sales of heaters such as thermal blankets in the European market increased by almost 300% in September compared to August. “
In addition, there is a strong demand for heat pumps (devices that collect ambient heat from the air and soil and then compress it to heat the water), especially in Germany, Poland, the Netherlands and the United Kingdom, with orders of more than 100% year-on-year in the beyond 90 days, according to the newspaper.
“As Russia’s herbal fuel materials become volatile and energy costs continue to skyrocket, China’s moderate-cost energy-saving heaters are gaining more and more popularity among European customers,” said Liang Zhenpeng, an independent customer electronics analyst. to the China Daily.
The consumer call and perceptions run counter to the development efforts of the European Union and individual countries in what they see as unfair barriers to opening up industry and investment. Today, China is the world’s largest exporter and the largest source of goods imported from the European Union. . In turn, it is the 3rd destination for EU exports after the United States and the United Kingdom.
At the ninth EU-China High-Level Economic and Trade Dialogue last summer, “the EU raised considerations about the business environment, adding to the lack of a game point and the increasing politicisation of China’s business environment,” according to a European Commission following the industry summit. “This leads EU corporations to reconsider their existing operations and planned investments in the country. “
Valdis Dombrovskis, executive vice president of the industry committee, said he “emphasized the need for continued commitment to build a more balanced and reciprocal industry and investment between the EU and China” at the meeting.
And while consumers appreciate affordable products made in China, a survey by the Institute of Asian Studies of Central Europe of thirteen European countries found that the covid-19 pandemic has lost acceptance in the Asian giant.
More than 50% of respondents in Sweden, France, Germany, the UK, the Czech Republic and Hungary now have a negative opinion of the country, and others in Latvia, Serbia and Russia are the only respondents who have a positive opinion.
“When you look at the aspects of interactions, only the industry with China is overwhelmingly definitely seen in most countries,” said report author Richard Q. Turcsányi. “By comparison, Chinese investment is perceived a bit more negatively, with only a minority of countries: such as Serbia, Russia, Latvia and Poland, leaning towards the positive. “Chinese investments are the worst earned among respondents from Sweden, France and Germany.
Similarly, the Belt and Road Initiative was definitely seen in Serbia, Russia, Latvia, Italy and Poland, while the other countries surveyed leaned towards a negative view.
However, in terms of perceived economic power, among the majority of citizens surveyed, China is still considered stronger than the US. All this shows that other people can think globally, but live locally. International Monetary Fund.
And maximum ideology when it comes to his own portfolio.
As the world recovers from the worst pandemic in a century, we see China as an integral, albeit indispensable, component of the global supply chain. Perhaps this is what the street guy intuitively confuses with economic domination.
– Jon Van Housen and Mariella Radaelli are veteran foreign bloodhounds in Italy