MUMBAI, April 10 (Reuters Breakingviews) – International companies are reinforcing President Xi Jinping’s message that China is open for business. It’s a brief comfort for investors fretting about whether and how the country will fit into world trade given its soured relations with the United States.
Japan Display’s (6740.T) shares soared 21% on Monday after the Apple (AAPL.O) supplier said it would provide its OLED technology to China’s HKC. The duo will construct plants for displays used in autos, wearables and other products. A day earlier, Tesla (TSLA.O) committed to building a factory in Shanghai that churns out 10,000 Megapack battery units a year, equal to about 40 gigawatt hours of energy storage, to ship globally. And Europe’s Airbus (AIR.PA) just moved to double capacity in China, agreeing to push ahead with a second China assembly line despite failing to win any new orders during French President Emmanuel Macron’s recent state visit.
The new commitments provide a reminder that multinational companies are making – and want to make more – money in the People’s Republic. Three-quarters of those surveyed by the American Chamber of Commerce in Shanghai generated a profit in the world’s second largest economy in 2021. The European Union Chamber of Commerce in China paints a similar picture. At least some of the decoupling rhetoric is being drowned out. (By Una Galani)
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(The author is a Reuters Breakingviews columnist. The opinions expressed are their own.)
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