The figures haven’t been kind to China lately. Gone are the days of double digit growth, trade data have weakened, credit markets have overheated and fears of a housing bubble remain. But despite the bearish headlines, the long-term picture for China looks quite good and a slowdown might actually be healthy, according to HSBC.
“This is a long term play,” James Emmett, global head of trade and receivables at HSBC told CNBC. “Absolutely there is long term sustainable growth. But it is the evolution and the change that needs to take place, and some of the reforms that need to take place which will be key as to how quickly that happens.”
Emmett told CNBC that decades of double digit growth for China had become unsustainable, and the recent slowdown for any company exporting to China is part of a natural cycle as the economy rebalances.
“We are inherently moving into new phase form the Chinese perspective. I think that is around the suitability of development. I think it is around the stability of development, I think the government is very focused on that,” he said.
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