【By Observer Net, Wang Yi】While some Western media still indulge in the narrative of "pessimistic China," real global investors have already seen the opportunities. William Ford, chairman and CEO of the U.S. private equity giant Atlantic Investment Group, emphasized that Western investors underestimate China, leading to missed excellent investment opportunities.

According to Hong Kong's South China Morning Post, on November 10, Ford was interviewed during his participation in the 2025 Family Business Summit in Hong Kong. He stated that Western investors underestimate China's innovation capabilities, entrepreneurial spirit, and economic momentum, avoiding the Chinese market out of fear of risks, which led them to miss "some excellent investment opportunities."

Ford pointed out that a new generation of ambitious Chinese entrepreneurs is rising, with multiple companies in various fields such as industrial automation and medical technology implementing a "from China to the world" development strategy.

"They want to enter the international market and become true global leaders," said Ford, who had just completed a two-week visit to China.

William Ford, Chairman and CEO of Atlantic Investment Group, World Economic Forum

Despite certain challenges brought by geopolitics, Ford believes that the easing of U.S.-China relations and the recovery of Hong Kong's stock market have created new opportunities for investment. He stated that the two countries recently discussed issues such as trade tariffs, soybean purchases, and rare earth exports, and bilateral relations have seen positive changes. "I think the U.S.-China relationship has reached a new balance."

Ford frankly said, "As the Hong Kong market becomes active again, investing here will become very attractive."

The South China Morning Post introduced that after several years of decline, Hong Kong's capital market has recovered since last year. From home appliance giant Midea Group to the world's largest battery manufacturer, Contemporary Amperex Technology Co., Limited (CATL), many companies have chosen to raise funds in Hong Kong. In the first half of this year, Hong Kong once again topped the global initial public offering (IPO) market, with 42 enterprises listed and raising 107.1 billion HKD.

Atlantic Investment Group was founded in New York in 1980. Since entering the Chinese market in 2000, it has invested about 8 billion USD in more than 40 companies including Lenovo Group and Meituan. The Chinese business accounts for 10% to 15% of the company's global investment portfolio, reaching up to 20% at its peak.

Ford revealed that the company had slowed down its investment in China in recent years, waiting for greater certainty in U.S.-China relations. At the same time, Ford pointed out that the global capital market is also experiencing a "exit recession," meaning limited channels for investment exits, but he believes this situation has reversed.

The report mentioned that since 2023, Chinese regulatory authorities have accelerated the approval process for companies going public overseas, and corporate mergers and acquisitions have also shown growth. According to PwC's forecast, the scale of related transactions will achieve double-digit high growth this year.

Data from the Ministry of Commerce of China showed that from January to September this year, a total of 48,921 new foreign-funded enterprises were established nationwide, an increase of 16.2% compared to the same period last year; the actual use of foreign capital reached 573.75 billion RMB, a decrease of 10.4% compared to the same period last year. Notably, the actual use of foreign capital in September increased by 11.2% year-on-year, indicating an improvement in the trend of capital inflows.

This reflects the structural differentiation trend of foreign direct investment (FDI) in China. Although the total amount of actual use of foreign capital has declined, the number of newly established foreign-funded enterprises has significantly increased, with high-tech industries becoming a standout highlight.

"We can now be sure that if you find an excellent company in China, there will be good opportunities to go public in Hong Kong," Ford shared. Atlantic Investment Group is optimistic about the potential of China in areas such as industrial automation, consumer electronics, and life sciences. They invested in WuXi Biologics, a drug development and service company, as early as 2006, and have continuously increased their investment in the biopharmaceutical field since 2021. "China has entered a brand-new stage and has truly become a leader in therapeutic innovation."

In recent years, more and more Chinese biotechnology companies have licensed innovative drugs to Western pharmaceutical giants. According to data from the U.S. investment bank Stifel, one-third of licensing transactions by major pharmaceutical companies in 2024 came from China, compared to 12% two years ago. This trend is expected to continue this year.

At the beginning of this year, the Economist website noted that not only in artificial intelligence, but also in drug development, China's progress has surprised the world. Chinese pharmaceutical companies are ahead in terms of being cheaper and faster. The innovative drugs produced by Chinese pharmaceutical companies are cheaper than those of their competitors, and China has become the second-largest country in new drug R&D globally, following the United States.

In August, the China Pharmaceutical Innovation Promotion Association published an article stating that under the impetus of national strategies and policy systems, the Chinese pharmaceutical innovation industry has achieved leapfrog development, gradually stepping into the mainstream stage of global pharmaceutical innovation. From the comprehensive coordination of the policy system, the significant increase in capital investment, the deepening reform of medical insurance payment, to the international recognition of R&D achievements, the Chinese innovative drug industry is moving from quantity and scale to quality improvement and gradually gaining the strength to compete with top global pharmaceutical companies.

Beyond the pharmaceutical sector, Ford also found that today's Chinese enterprises' competitiveness is not only reflected in cost, but also in quality and innovation. "China is striving to become 'N+1', rather than 'N–2'." He explained that "N–2" means winning through cost reduction and exporting low-price products globally, while "N+1" means producing higher-quality products while maintaining price competitiveness. He used Chinese car companies as an example, saying, "Look at BYD, look at Xiaomi cars, you will understand what 'N+1' means."

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Original: https://www.toutiao.com/article/7571031698612306467/

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