Goldman Sachs on China’s economy reform

According to Nikkei Asian Review, Goldman Sachs has an important part to play as they support the reform of Chinese Economy. CEO and Chairman Lloyd Blankfein revealed this in an interview, which also discussed several topics such as Bitcoin, Toshiba, and the prospect of retirement.

At the moment, Wall Street bank has been up to some China-related business. Announced last fall, this includes their partnership with state wealth fund China Investment Corp as well. Blankfein emphasized the value of the country as a market for Goldman Sachs.

“My predecessor, Hank Paulson, went there a lot. I go there a lot. It is the second-largest economy in the world, and certainly on the way to being the largest,” he said.

“You are going to need rules and regulations that allow companies to go bankrupt in a sensible way so that bad assets can be recycled and redeployed in the economy. You are going to have to reorganize companies to make them more efficient,” he added.

“Those are all ways in which we normally help an economy, and so we think it is very important for us to be there, and I think it is very important for China to have companies like us there helping the economy grow,” he further shared.

Moreover, Blankfein believes China needs his company if they want to continue pursuing the ranks of advanced economies. This goal requires the country to edify their financial and economic reform. He also addressed Goldman Sach’s transaction with Japan and how their operation there is doing for the last four decades.

“Commitment is especially important in Japan, where relationships really matter. It takes a long time, and we have been here a long time. Sometimes it’s frustrating: You want quick results, but Japan gives solid and durable results, but not quick results,” he said.

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