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Will 2019 be the Year when Foreign & Swiss Businesses do better than their Chinese Competitors?

Will 2019 be the Year when Foreign & Swiss Businesses do better than their Chinese Competitors?
February 2019

No reason for hubris though – confidence is going down

The productivity know-how and quality competitive advantages of international companies are welcome good news but still no reason for complacency. Indeed and despite the positive forecast of international companies, the bad economic news is real and it is reflected in the lower confidence levels that all economic actors express for 2019.

On a scale of 0 to 10 (with 7 labeled as “confident” and 10 as “extremely confident”) Swiss, EU and US companies report a confidence of around 6.5 on average, clearly lower than what they expressed a year before.

The Chinese businesses announce the biggest drop in confidence among all companies, in consistence with their relatively lackluster sales expectations and confirming the pessimistic growth views of Chinese businesses, if need be.

All in all, the new Chinese year opens up on a background of economic uncertainties. We will all be watching the international developments, hoping for a degree of sanity in international relations leading to a resolution of the Sino-American conflict or a long term armistice, at least.

Business in China has never been easy. Clearly, if it get further complicated by a worsening trade war, we have to be ready for more difficulties. Yet, the aspirations of the Chinese consumers will remain and China’s large needs for quality growth will still need to be fulfilled.

And then, if we make full use or our natural competitive advantages, we should be able to make the Year of the Golden Pig another prosperous year, hopefully yielding fat profits!

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