Large companies in China, Taiwan and South Korea are responsible for a half-bill of dollars in outgoing investments over the next five years, emphasizing the “processing industries” in the middle increased geopolitical tensions, according to Citigroup senior executives.
A global objective was necessary for companies to achieve growth and sail on volatility and uncertainties posed by geopolitics and macroeconomic pressures, said Kaleem Rizvi, manager of the business bank for Japan, North Asia and Australia.
“We continue to see important opportunities despite the various opposite winds discussed,” he said. “During high volatility, companies must integrate flexibility into their strategies.”
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The American bank considered that capital expenses announced by continental Chinese and Taiwanese companies outside their original markets would be close to $ 300 billion over the next five years, with money in technology, ‘Artificial intelligence, electric vehicles (electric vehicles) and health care.
The senior executives of Citigroup Kanika Thakur (left) and Kaleem Rizvi say that Asian companies are considering emerging markets in the middle of geopolitical tensions. Photo: Edmond so alt = Senior Citigroup Healing Kanika Thakur (left) and Kaleem Rizvi say that Asian businesses envisage emerging markets in the middle of geopolitical tensions. Photo: Edmond so>
Meanwhile, investments in South Korean companies would cost around $ 200 billion during the same period. This would place in markets such as North America, Eastern Europe, Southeast Asia and India in areas such as the manufacture of batteries, electric vehicles, semiconductors and renewable energies.
“Emerging corridors are largely developed due to changes in supply chain and capital expenditure in processing industries such as artificial intelligence, semiconductors and electric vehicles,” said Rizvi. “This trend should continue.”
Chinese electric vehicle manufacturers and automotive supply chains suppliers are at the forefront of the diversification of their global supply chains to navigate prices and seek growth. Plans for manufacturers of Chinese electric vehicles were assigned after the United States increased prices on 100% Chinese electric vehicles, compared to 25% last year and US President Donald Trump threatened to impose more than Tasks to Chinese goods. The European Union applied import prices up to 45% on electric vehicles produced in China in October.
