Economic experts forecasted that China will retain investment interest in the coming months despite increasing fears for the global economy as its solid domestic market supports business confidence.
According to China Daily, President of Cargill Asia Pacific, Robert Aspell, noted that the private agricultural firm still believes in China's economy. Aspell said the U.S.-based company is "very, very confident about the direction where China is going."
Aspell pointed out that family owners in the company are long-term thinkers, which is why the group decided to invest $100 million into its Shanghai facility as it sees long-term growth in the country.
Aspell isn't the only one who believes there is great potential in the Chinese market. Head of China economics at Credit Suisse, David Wang, noted that despite ongoing trade tensions with the U.S., the size of China's domestic market is "too big to ignore" for foreign companies and brands in search of a place to grow.
For Dean of the School of International Economics and Trade at the Central University of Finance and Economics, Zhang Xiaotao, China's middle-income population is helping drive business interest in the country.
To date, there are around 400 million middle-income people in the country. This particular consumer group is considered to have high consumption potential and the growing numbers could be one of the reasons why investors are putting their faith in the Chinese market.
Head of Home Credit China, Roman Wojdyla, also explained that the millennial generation is helping drive consumption in the country. Many young consumers are inclined towards premium products and they are attracted to new offers.
The numbers also speak for themselves. For the first eight months of the year, foreign direct investments (FDIs) saw a 6.9 percent hike, the Ministry of Commerce revealed. The increase accounted for 604 billion yuan in FDIs for the Chinese market.
Due to the continued resilience of the Chinese consumer market, many analysts believe the country will overcome headwinds along the way and hold up despite the collapse of some Asian economies amid the global slowdown.
Earlier this week, CNBC reported that some international brands are looking into tapping the growing middle-class Chinese market. Economic experts said there's still a lot of room for the middle-class consumer group to grow even amid a slowing economy.
Walmart is planning to open at around 14 Sam's Club membership stores in China within three years as part of its efforts to have a chunk of the dominating middle-class consumer group in the country.
China's economy has been the topic of debate ever since the trade war started. However, the country has proven time and time again that through the slowdown, it stands strong on its solid economic foundations.
