Bank of China US President Hu Wei (right) and National Commission Chairman Steve Orleans … [+]
Bank of China is one of the world’s largest banks, ranked 13th in the 2022 Forbes Global 2000 World Listed Companies Rankings. The Beijing-based institution was one of a record number of Chinese companies on the list this year (see related article here).
Mr. Wei Fu, President of the Bank’s US Business Unit, spoke at the “US-China Business Forum” hosted by Forbes China on August 9 at Forbes on Fifth in New York. Business, the outlook for the US economy, and the impact of geopolitical tensions between the US and China. Fu is also president of the General Chamber of Commerce of China, an organization of Chinese businesses in the United States that directly and indirectly contributes to the employment of more than one million Americans. An edited excerpt follows.
Flannery: The bank has expanded significantly since opening its first branch here in 1981. How different is the business mix here from China?
Hu: This bank is the most international of all Chinese banks. Although our markets are slightly different, we share the same strategy of serving our communities while connecting with the world.
Nevertheless, we also make use of various resources. In the US, our resources are limited. In China, unsurprisingly, the branch network is much larger. We focus our local (within the US) resources on our key clients (large corporations, major real estate developers, globalizing Chinese companies) to support US trade and investment as well as local economic growth. We are working with them to Not just China, but other parts of the world.
Flannery: How does the US rank among your foreign markets?
Hu: Bank of China operates in more than 60 countries and regions around the world, and given the scale and opportunities of the two economies, the United States is definitely one of our key markets. Luckily, we have a market (domestic), a strong reputation and a dynamic talent pool.
Flannery: By some definitions, the US entered a recession in the first half of this year. Growth is barely slow. What impact is it having on your business?
Hu: We know that economic growth has been negative in the last two quarters, and the economy as a whole continues to cool. We are very cautious about economic developments, the potential impact of rate hikes, and the credit cycle. However, we are cautiously optimistic about near-term growth. Our customers are prestigious customers with solid credit profiles. We always take a prudent approach and have strict standards for risk management. We will continue to monitor market trends.
Flannery: What about the current geopolitical challenges in the world, especially in the US and China? What are the implications for your business?
Hu: I think this is actually a very difficult issue, not only for banks, but also for member companies of the General Chamber of Commerce of China. Her two largest economies in the world, the United States and China, are inextricably linked. A mutually beneficial and strong relationship is very important. Unfortunately, conflicts are observable. Much activity between the two is greatly reduced. Impacts, uncertainties and complexities exist on many fronts.
There are many opportunities to connect with various partners from both the United States and China. We want to help both sides to come up with solutions that are practical or pragmatic. increase.
Flannery: What is the future outlook for the value of China’s currency against the US dollar?
Hu: That’s another important question. When talking about the renminbi, the whole world should be taken into account, not just China and the United States. In Q1 and Q2, the Chinese economy has been slightly affected by the pandemic. However, there are signs of recovery since his June this year. We also observed that the impact of the Fed’s interest rate hikes would reduce the global (growth) trend, especially in emerging markets, which would affect the comparison of the renminbi to other currencies. Taking that into account, we still consider the renminbi to be a safe port for the global economy.
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The 4th The US-China Business Forum was hosted by Forbes China, the Chinese version of Forbes. The rally was held in person for the first time since 2019. 2020 and his 2021 he was held online at the height of the Covid 19 pandemic.
Other speakers included Chinese Ambassador to the United States Qin Gang. James Shih, SEMCORP Vice President. Abbey Lee, Director of Corporate Communications and Research, General Chamber of Commerce of China. Audrey Lee, Managing Director of BYD America. Lu Cao is Managing Director of Global Corporate Bank, Corporate and Investment Bank, JP Morgan.
Stephen A. Orleans, Chairman of the National Committee on U.S.-China Relations, also spoke. Ken Jarrett, senior his advisor at Albright Stonebridge Group; Dr. Bob Li, Physician Ambassador for China and Asia Pacific, Memorial Sloan Kettering Cancer Center. Yue Sai Kang, Co-Chair, China Institute.
See related articles:
American universities are losing Chinese students to rivals: US-China Business Forum
US companies escape China sanctions on Pelosi visit: US-China Business Forum
Growth prospects are today’s biggest fear among US companies: US-China Business Forum
New Opportunities from New Technologies: US-China Business Forum
US ambassador says pandemic’s impact on China’s economy will be only short-term
US-China Business Outlook: A New Pathway
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