She also brought up the shift to China’s consumption model and emphasized the sophistication around consumer services and innovation. “Consumption patterns create opportunities,” she said.
The growing middle class in second-tier cities, whose populations are projected to triple in size by 2030, is driving much of the growth.
In general, and by all accounts, there is a misunderstanding about China’s prospects.
Rothman pointed out that the tariffs imposed by the Trump administration haven’t had much of an effect on the Chinese economy. Recent slowed growth, he said, can be linked to investor uncertainty and Chinese government intervention in the financial markets, restructuring its economy.
“It’s the world’s best consumer story,” Rothman claims. Household savings is 27% versus 8% in the U.S.
The only ramification of the tariffs is that it has created that uncertainty in the markets, Rothman said. But that will be erased once a trade agreement is reached. And he believes there is a 90% chance that will happen this month. Then, “Trump will roll back nearly all of the tariffs that are in place today.”