Conflict in the Middle East and growing global turbulence following US-Israeli strikes against Iran has seen foreign investors look to China
SCMP
“Capital needs expectations,” he said. “If people don’t know when the [Iran] war will end and uncertainty continues to mount, while China becomes increasingly certain, capital will naturally flow in.”
Pointing to the recent visits to China of European leaders, Zheng described them as significantly symbolic, adding that China must “maintain strategic composure in the face of profound changes”.
He also called on China and the United States – which he called “de facto G2” – to deepen dialogue, not only regarding bilateral relations but also on broader global affairs.
Pan Gongsheng, governor of the People’s Bank of China, told the forum that the country will steadily promote the “high-level opening up” of its financial sector, deepening the interconnectivity of financial markets and cross-border payment systems to smooth the path for global capital.
“We welcome overseas investors to participate in China’s financial markets,” Pan said.
He added that stable, rational and predictable cooperation was “particularly precious” in the current climate, warning that “trade fragmentation is undermining the foundations of free trade”.
“We must more firmly oppose all forms of trade protectionism … and promote a universally beneficial and inclusive economic globalisation,” Pan said.
He reiterated China’s stance on the exchange rate, adding that it “has neither the need nor the intention to gain a trade advantage through currency depreciation”.
Also at the forum, Finance Minister Lan Foan said China “still holds enormous investment potential”, with the key lying in “making greater efforts to improve the efficiency of government investment and to unleash the vitality of private investment”.