(Yicai Global) July 19 -- China’s economic fundamentals remain the same, and although there have been short-term challenges, the economy should grow steadily in the medium and long-term and the country will continue to be attractive to most multinationals, China News Service reported today, citing a senior executive at German consultancy firm Roland Berger.

China’s economy is under great pressure amid a complicated global economic environment, heightened geopolitical tensions, recurrent outbreaks of Covid-19 and high inflation worldwide, said Denis Depoux, co-president of the Munich-based firm’s global management committee. But the nation is rapidly forming new competitive forces driven by industrial modernization and low-carbon development.

China provides many multinationals with additional engines for their growth, Depoux said. Before the latest wave of Covid-19 struck this year, most multinationals in the country were not badly affected by the pandemic and were able to generate considerable profits.

The recent flare-ups have dampened optimism about the China market and made it more difficult for international companies to do business in the country, he said. However, overseas firms still have in-depth and extensive development ongoing in the country and will continue to devote themselves to China in the medium to long-term.

China remains attractive to most multinationals thanks to its superior industrial clusters and efficient innovation centers, Depoux said. Compared with other world markets, the country’s key fundamentals are still strong and one-of-a kind.

China will maintain a leading position on the supply side because of its high lower-carbon production capacity and influence in Asia. On the demand side, the nation has a bigger middle class than other countries and so it will stay attractive to overseas firms with continued support from the government, he added.

Editor: Kim Taylor