Beijing’s push to transition its economy has led to the country moving on by simply being known as the entire world’s factory, according to a top executive at Swiss bank UBS.
“A lot of things are being created today in China, rather than [which just] being a manufacturing hub,” Kathryn Shih, president of UBS Asia Pacific, told CNBC on the sidelines of the UBS Greater China Conference in Shanghai.
“China is usually at the forefront of a lot of improvements in financial technology. So we see a lot of financial firms using China technology today, whether which’s local firms or even international firms,” she said.
improvements have also come to the manufacturing front as China moves into more high-tech sectors, with Shih pointing to developments inside Chinese electric car industry.
“We see the advent of … electric cars here in addition to also I think which’s going to be great in creating Chinese brands inside future,” Shih said. She added which many UBS investors were looking to invest in up-in addition to also-coming names inside space — in which China is usually currently angling to become a leading player.
The broader shift comes as China continues with its years-long plan to transition by a factory-led style of growth to one driven by services in addition to also innovation.
in addition to also while the country has drawn criticism over the business environment for foreign firms — the EU Chamber of Commerce in China last year called the country’s “Made in China 2025” manufacturing strategy an import-substitution plan — Shih had a sanguine take on UBS’ prospects when compared to domestic asset managers.
“I think the main advantage of being local here is usually distribution channels in addition to also which happens everywhere. yet China has actually been creating a more in addition to also more open field,” she said, highlighting Beijing’s announcement last year to lift the foreign equity ownership limit in certain financial sector joint ventures.
“There’s been a lot of opening up in recent few months which is usually great for foreign firms like us,” Shih added.