New Delhi
CNN Business
–
Indian Billionaire Gautam Adani said that China “will feel increasingly isolated” and that “globalization’s leading champion” will find it difficult to recover from a period of economic weakness.
Speaking at a conference in Singapore on Tuesday, Adani said “rising nationalism, reducing supply chain risks, and constraining technology,” as well as resistance to China’s massive Belt and Road initiative. Beijing, will influence China’s global role.
Asia’s richest man says the “housing and credit risks” in the world’s second-largest economy are “comparable to what happened to the Japanese economy in the ‘lost decade’.” ‘ of the 1990s.”
Adani was speaking less than a month after the business magnate became the world’s third-richest person, according to the Bloomberg Billionaires Index. He is the first Asian to win that position.
The founder of the Adani Group of the same name controls companies ranging from port to power.
While pessimistic about China, Adani remains upbeat about his country, saying that India is “one of the few relative bright spots from a political, geostrategic and market perspective”.
He predicts India will become the world’s third-largest economy by 2030, with “the largest consumer middle class the world has ever seen”.
Some tech companies looking to reduce their reliance on Chinese manufacturing have seen India as an attractive alternative.
In Monday, Apple announced that it has begun production of the new iPhone 14 in India, as the tech giant is looking to diversify its supply chain. While the company manufactures the majority of its products in China, it decided to start manufacturing its latest devices in India much earlier than previous generations.
Businesses may have to leave China not only because of strict Covid restrictions, which have hurt supply chains for months now, but also because of rising tensions between Washington and Beijing over Taiwan .
The US government has ordered two of the leading chip manufacturer stopped selling high-performance chips to China earlier this month. And, last week, the leaders of America’s largest banks said they can escape China if it ever attacked Taiwan.
Adani also mentioned the challenges that UKand countries in the European Union, because of the war in Ukraine and Brexit.
“While I would expect all of these economies to readjust over time – and bounce back – this time the friction of the recovery looks much harder,” he said.
