HSBC CEO Reports Significant Increase in Chinese Companies Diversifying Business Outside China

HSBC CEO Noel Quinn reveals a 70% surge in banks' aid to Chinese businesses moving their operations overseas, signaling a shift as China's growth model changes and companies seek to mitigate risk amid geopolitical uncertainty.

• HSBC's CEO, Noel Quinn, reported a 70% increase in the bank's activity helping Chinese companies diversify their operations outside China's mainland, denoting a significant shift in the global business landscape.
• Chinese businesses are spreading their supply chains into other parts of Asia and the world, as China transitions from being the 'factory of the world' to a more services and consumption-centered economic model.
• This pattern of diversification from China has been ongoing for years, with Chinese firms frequently investing in overseas manufacturing in pursuit of lower costs, according to a July report by Rhodium Group.
• Despite this trend of diversification, China still plays a significant role in the global supply chain, with replacements for China's manufacturing capabilities anticipated to take years, if not decades.
• Quinn emphasized that China remains an attractive market for international businesses due to its rising consumer class and continuous urban growth.

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