By Manal Abdel Fattah
Although some Western economists are pessimistic about the Chinese economy, entrepreneurs such as John Mueller, CEO of consumer products company P&G, are optimistic about future business opportunities in China.
According to what the Chinese “Xinhua” agency reported, the reason behind this discrepancy is clear. While many Western economists rely on Excel spreadsheets and rigid models for their flawed forecasts, entrepreneurs with direct experience in the Chinese market tell a different story.
Mueller said that a visit to China last month reinforced his view that there will be opportunities to expand the company’s business in the coming years.
During a recent earnings discussion meeting, Mueller said he spent six days in China, where he met with local company employees, government officials and visited citizens’ homes. “The opportunities provided by China in the long term still exist,” he said after his visit.
He added that vision is the basis of belief, and the best way to understand the Chinese economy is to visit China to gain first-hand experience, and this is crucial for companies and investors, as knowing China well can benefit investments.
Bridgewater Associates, the world’s largest hedge fund, provides a good example in this regard. Despite widespread negative sentiment towards China’s financial market, the hedge fund performed exceptionally well in China last year.
The performance of Bridgewater China Investment Management has exceeded many other domestic and foreign funds, and is expected to increase to about 5.6 billion US dollars at the end of 2023, according to the Financial Times.
Analysts attributed the hedge fund’s outstanding performance to its investment strategy and full experience gained from long-term research into the Chinese market.
Some Western economists who indulge in rigid models may not accurately understand China’s economy.
Not only did these economists fail in their predictions about China, but their estimates of the global economy also proved incorrect.
