On the sidelines of the 25th China International Fair for Investment and Trade (CIFIT), held from September 8 to 11 in Xiamen, Fujian Province, Harley Seyedin, Chairman and President of American Chamber of Commerce in South China (AmCham South China), shared his insights in an exclusive interview Beijing Review reporter Zhang Shasha on opportunities for global investment in China, the evolving China-U.S. relationship and the importance of cooperation for world peace and growth. Edited excerpts from their conversation follow:

Beijing Review: How do you assess the role of CIFIT as a platform for international investment and cooperation? And how would you evaluate the city of Xiamen as its host?

Harley Seyedin: I know the CIFIT very well, and I've watched its growth alongside China's growth—especially in Fujian Province and the city of Xiamen.

Xiamen is known as the "Paris of the Orient," but I think it's even better. It's a beautiful, ancient city, home to the very first foreign consulate in China, which has been preserved wonderfully.

The CIFIT is a very important part of the growth of China. We've been bringing delegations of different sizes to the fair for more than 20 years. The fair represents two types of opportunities: investment into China and investment into other countries. Over the past 20 years, our delegations have averaged more than $2 billion annually in new contracts signed at the CIFIT.

Could you share your experience and connection with China and the Guangdong-Hong Kong-Macao Greater Bay Area (GBA)? What does the GBA represent for foreign enterprises, and what role does the AmCham South China play?

I've lived and worked in China for more than 30 years and raised a family here.

In 1991, I put a team together and came to Guangzhou (capital of Guangdong Province in south China and a city in the GBA—Ed.). I saw the industrial revolution happening in China. As a result, I made some very good investments—every one of them turned out to be profitable, beyond what I had ever expected. That's why Guangzhou became home.

My first project investment was building a power plant in Dongguan (another GBA city in Guangdong—Ed.), which helped the city develop rapidly. I also built another in Guangzhou. I was very lucky to have those opportunities, and they made me feel like I was truly part of the growth and part of the change.

The GBA brings together Hong Kong and Macao special administrative regions and nine cities in Guangdong—each with unique capabilities that collectively create a region unlike anywhere else in the world. It will play a decisive role in shaping the future growth of China, not just the region itself.

At AmCham South China, we represent about 2,300 members, accounting for 40 percent of all U.S.-China business trade and investment. We work directly with the U.S. Chamber of Commerce in Washington, D.C. We are fortunate to have the GBA as part of our area of coverage, as our member companies have a strong interest in investing in the GBA.

What are your views on the current state of global investment and the role China is playing in that field?

China plays a great role in global investment. The Belt and Road Initiative is an area that China has highlighted and fully supported, providing many countries with the ability to build ports, airports, railways and highways, and this is going to continue. (This China-proposed initiative boosts connectivity along and beyond the ancient Silk Road routes—Ed.)

The need is there. Many Asia-Pacific countries in particular require roads, ports and other facilities. When a new port is built in one of these Southeast Asian countries, trade between that country and China naturally increases.

The reality is that China has risen as a global powerhouse in manufacturing, exports and investment. Many Chinese companies are investing overseas and going multinational, and I believe this trend will continue. I also believe the U.S. welcomes the opportunity for Chinese companies to invest there as well.

What does the Chinese market represent for U.S. companies today? Has its significance for them changed?

China continues to be a very significant market for American companies. According to the latest study released by AmCham South China, more than 72 percent of our members are primarily operating in China—importing goods and services from the U.S. and producing goods and services locally for the Chinese market. Fewer than 28 percent remain focused on exports. This shows that China has become a market where we have transitioned from simply relying on low-cost manufacturing for export to developing higher-technology and higher-value-added products for domestic consumption.

Chinese market has been very important to us. It's going to continue to be important and it will represent a very significant market for our companies going forward.

Given the cultural differences between China and the U.S. in terms of consumption and savings habits, what recommendations would you offer for China's efforts to expand its domestic demand? How might U.S. companies contribute in this context?

U.S. companies began arriving here some 30 years ago, bringing with them advanced technology and high-quality products. Trust and confidence in American products is very high in China.

That is why I constantly encourage American companies to sell their products here. China remains an exponentially growing market—perhaps not as fast as we would like at this moment, but current challenges, driven by the COVID-19 pandemic and international factors, are temporary in nature. With time and negotiation, these difficulties will pass. I firmly believe China will continue to be an ever-expanding market for American products. We are not leaving; in fact, we want to expand our market share here.

As income levels rise, Chinese consumers will spend more. Chinese people are very smart consumers. They know what products they like and they spend within their means. They will continue to spend. Today, it is slower, which can be explained by broader economic conditions, particularly the softness in the real estate market. And I believe that as the broader economy strengthens, with COVID and its impacts behind us, China will continue to buy more products. The Chinese will spend money when it is necessary, and they love to spend on luxury goods. I think that is something that will naturally continue to grow.

I recognize that there are differences between the U.S. and China in trade and other areas. Dialogue is what creates understanding, agreements and opportunities. I think the fact that China is demonstrating such openness to maintain dialogue and work through differences is remarkable and commendable. This is exactly what we need to continue doing. I'm very pleased to see that high-level talks are taking place.

How should China and the U.S. respond to current challenges in order to promote better global economic governance, and what role can businesses play?

If you look at the last 70-plus years of peace, technology in the world has advanced far more than it had in the previous 3,000 years. This boom has allowed every country in the world to raise the quality of life for its people.

When we look at China over the last more than 40 years, it has lifted some 800 million people above the poverty line, an achievement that has never happened before in human history. All of this has been possible because of peace.

As a result of peace, countries began to work together. Globalization became an important factor in this process, contributing to the wellbeing of people. China is now the second largest economy in the world, making

it a naturally important part of the global economy. China has not only improved the lives of its own citizens but has also helped raise the standard of living in many other countries.

As long as peace continues, I expect our technology will keep advancing.

Business is an integral part of political and international relations. The U.S. and China already work very well together. There are differences and occasional arguments—but every relationship, even marriage, has disagreements from time to time. Currently, trade between China and the U.S. is robust, and cooperation in many areas is strong and growing. Negotiations are ongoing not to reduce collaboration but to expand it—to open new doors, explore new frontiers and create new possibilities for both countries.

I expect that both countries will continue to work together for the betterment of humanity for many years to come. The U.S. and Chinese economies are deeply intertwined and inseparable; in many ways, they depend on each other. I expect that this will continue to grow.

Many Global South countries are seeking greater infrastructure and development support. Do you see potential for China-U.S. cooperation in third-party markets?

The reality is that after World War II, the U.S. played a key role in enhancing the World Bank and other multilateral institutions that support investment in many countries. These institutions continue to contribute to global growth.

China has entered this arena through the China Development Bank and the Belt and Road Initiative. I believe there is ample opportunity for collaboration. With these investments, there are many possibilities for co-investing in infrastructure across different regions. This is something the two countries should continue to discuss and actively pursue. I simply cannot see any one country doing this alone in the future. BR

Copyedited by G.P. Wilson

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