‘The next China is China’ for foreign investors, claims McKinsey & Company’s Greater China CEO
- China’s potential for GDP growth puts it at the head of the pack when it comes to pulling in investment funds from overseas
- However, critics contend that China must do more to protect the rights of foreign businesses and investors, including by opening up the market and not favouring state-owned firms
Foreign investors on the hunt for growth potential do not need to look too far for “the next China”, according to the chairman of a global management consulting firm.
“The next China is China,” says Joe Ngai at McKinsey & Company in Greater China.
His declaration came in response to a question he posted himself on the LinkedIn networking site: “As global investors and corporations look for growth, everyone is wondering: Where’s the next China?”
More specifically, he was referring to the potential for gross domestic product (GDP) growth in China over the rest of this decade, relative to what will be seen in other countries.
“If China’s GDP grows at a conservative 2 per cent annually for the next 10 years, the total cumulative growth will be equal to India’s GDP today,” Ngai explained. “If China’s GDP grows at 5 per cent, the total will be equal to India [and] Japan [and] Indonesia.”
Not everyone believes it is so cut-and-dried as mere GDP growth, however.
