17 Nov 2020
According to IHS Markit, companies in China and the U.S. reported the highest recovery rate from the coronavirus pandemic.
China’s economy is expected to grow throughout the remainder of the year, in contrast to the other countries. The world took measures to battle the pandemic by shutting down its industries. Despite the measures taken, coronavirus cases continued to surge in a second wave.
S&P Global stated that S&P 500 profits will decline by another 16%, year on year, and may be impacted more by the latest restrictions.
Greg Gilligan, chairman of the Beijing-based American Chamber of Commerce in China, said, “Anecdotally, people are getting pressure from headquarters since the China economy (is recovering). They’re expected to carry a little more weight in the next fiscal year.”
Over 6,600 companies from 12 countries participated in IHS Markit’s survey in October, which resulted in positive news for those firms in China. Businesses in China had the highest recovery rate, followed by those in the U.S.
Matt Margulies, vice president for China Operations at the U.S.-China Business Council said, “At least the companies that I engage with, I don’t think their view or preference for China really ever waned that significantly. A lot of American companies are really in China to sell to China because that’s where their market is. Very few of them are there to export to the U.S.”