The country is too big to sideline, according to the investment bank’s Asia CEO
China is an important player on the global economic stage that cannot be left aside, JPMorgan Asia Pacific CEO Sjoerd Leenart said on Thursday at the 20th annual Global China Summit in Shanghai.
According to the chief executive, a lot of international companies are investing in the economic powerhouse despite the prevailing political rhetoric.
“You can’t ignore it, you have to do business there, even if you decide not to do business there, you need to understand what’s going on,” Leenart argued, adding that what happens in China “influences every industry around the world.”
According to a CNBC report, China currently accounts for 19% of GDP and 48% of Asia’s GDP in terms of purchasing power parity.
Leenart underscored China’s importance in the region’s investment banking business, claiming that “banking in Asia also can never be full speed if China isn’t running.”
He noted that despite foreign direct investment into the country falling last year, it should be viewed in the broader context of FDI growing for the last 50 years. “Every market will take its pause,” Leenart said.
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