Economist Justin Lin Yifu speaks at the session "Dialogue of Asian Civilizations" during the Boao Forum for Asia (BFA) Annual Conference 2016 in Boao, south China's Hainan Province, March 23, 2016. (Xinhua/Weng Xinyang)
China's ongoing transition to "new normal" featuring slower but better growth means new investment opportunities, in areas ranging from e-commerce to high-end manufacturing, attendees of the Boao Forum for Asia (BFA) agreed Wednesday.[Special coverage]
"Aggravated overcapacity would not be an issue if investment was channeled to sectors with capacity shortages," said Justin Yifu Lin, a former World Bank chief economist, in an article published by BFA.
China is implementing supply-side structural reforms, with a focus on reducing overcapacity, destocking, deleveraging, reducing costs and shoring up weak growth areas. The reform will advance economic restructuring by expanding medium-to-high-end supply.
"Investing in industrial upgrading and technological innovation would be an [entry route] for businesses seeking opportunities in China," he said.
When attending the sub-forum "Dialogue of Asian Civilizations" at Boao, former Pakistani prime minister Shaukat Aziz highlighted the cooperation opportunities the Belt and Road Initiative had brought to his country and to regions along the routes.
Aziz said trade and investment should also be enhanced via local mechanisms including ASEAN.
During the same forum, Nobel Prize laureate Mo Yan shared his thoughts on how online shopping had made exchanges much faster. He shared that his daughter had bought him some dates from the Middle East, which arrived just a day after she had pressed send on the order.
"I couldn't imagine how quick the date would be delivered."
China will set up more cross-border e-commerce pilot zones to attract businesses, create jobs and nurture new business models that will boost foreign trade and stimulate the economy, the State Council announced in January.
E. Allan Gabor, president of the Asia Pacific region for Merck Biopharma, told Xinhua at Boao that he is confident that China, one of the biggest markets for most of Merck's products, will offer more opportunities for Merck thanks to the country's rising middle class.
"In 2016, the Chinese government implemented the universal two-child policy. This will bring additional demands on the treatment and service level in the hospitals [...] we hope to provide better products and services to patients." Gabor said.
According to Merck, although the Chinese economy has entered a "new normal" phase, the demands of its 1.3 billion population continue to increase, which is a driving force for economic development.
China, as the largest market for goods such as automobiles, cosmetics, food and large-screen displays, provides numerous business opportunities for global investors, Gabor said.
"China is full of opportunities under the backdrop of 'new normal,' ranging from restructuring to urbanization, but investors should be prepared and invest in fields that need upgrading," said Zhang Shuyu, a researcher with the University of International Business and Economics.
Douglas Oberhelman, chairman and CEO of U.S. construction and mining equipment producer Caterpillar, said over the weekend that China's ongoing transition to slower but better growth will benefit multinationals.
No economy the size of China can sustain double-digit growth, and the transition to 6.5-7 percent growth is "very healthy," he said.
Oberhelman spoke highly of the 13th Five-Year Plan released last week, saying that "what's contained in that plan is very appropriate for the current times."
According to him, China's pursuit of cleaner air will create business opportunities for Caterpillar, as it can produce a broad range of environment-friendly machines.
Despite the current economic slowdown, China is still growing twice as fast as the global average, he said, adding that a growth rate of 6.5-7 percent for the next five years will require more investment.
IMF deputy managing director Zhu Min told Xinhua in January that China's economic transformation was not fully understood.
Zhu suggested that the Chinese government increase transparency and launch publicity campaigns to let the world know about the changes underway in the country's economy.
Besides, the outside world needs to better understand the problems China has encountered in the process of its economic transformation.
