Maroš Breda, co-owner of the Chinese winery Chateau Nine Peaks. (source: Chateau Nine Peaks)
China's economic growth is slowing and Western capital is moving away from one of the most populous countries in the world, closer to the US and EU borders.
Chinese labour is becoming more expensive for Western companies, and when transportation threatened by military conflicts is added to costs, companies prefer to move their factories.
"Slovakia should take advantage of this trend and become an important producer for the European market," manager and investor MAROŠ BREDA, who previously participated in development projects in China and now owns a winery there, says in an interview with Index magazine.
According to analysts, there is an outflow of Western capital from China. Do you also see it that way?
Yes. This is especially the case of large US companies such as Apple and Nike, which are relocating their production plants to Vietnam, Malaysia or India. Foreign investors are withdrawing money from China faster than they are investing there.
What's the reason?
There are several. The war in Ukraine divided the world geopolitically, and China has not taken a clear stance in the conflict. Tensions between the US and China over Taiwan are also growing. The country's low interest rates and caution of investors as China is facing an economic slowdown also play a role.
Chinese President Xi Jinping likes to present as Mao Zedong. (source: TASR/AP)
Despite the increase in wages, inflation not rising
Why are investors moving to Vietnam? What does it offer?
In terms of infrastructure development, Vietnam is 15 to 20 years behind China, but is developing rapidly. In addition, the culture in China is very different from that in Vietnam. First of all, China is communist while Vietnam is socialist. The Communist Party also has great power in Vietnam, but not to the same extent as in China, as evidenced by the way the country is run.
Is Western capital moving from China back to the US and Europe?
