Standard Chartered PLC is firmly optimistic about China's economic prospects and has actively aligned its business strategies with economic trends, such as the high-quality development of the private economy and the rapid application of artificial intelligence technologies, in the world's second-largest economy, its top executive said.

"It's entirely possible for China to hit the economic targets that it has set as it had in recent years," Bill Winters, group chief executive of the bank, said in an exclusive interview with China Daily, pointing to the positive advancements in China while analyzing the challenges.

"We know that consumer confidence has been relatively weak, but we see very concrete actions that are being taken to support confidence and encourage consumers to spend more freely," Winters said.

"We also know that the source of some of this lack of confidence has had to do with the weak property market. But there are signs of stabilization certainly in the tier-1 and tier-2 cities and support coming from the government and the banking sector and elsewhere, which I think will help support this confidence."

Winters highlighted the "outstanding growth" made by China's private sector, in particular, the significant advancements made by private companies in climate-related new technologies and AI. China's leading positions in these new and emerging sectors, he said, "will provide an ongoing source of growth in the foreseeable future".

"China is extremely advanced in the development of these large language models and the AI tools that are built around them," he observed. "The pace with which those tools are being embedded into everyday life, whether it's a consumer life or business life, is very rapid."

Winters said the bank uses cloud applications and partners with leading Chinese tech companies. Additionally, Standard Chartered provides financial services to these companies, including lending and support for their international expansion.

He pointed out the opportunities for Chinese companies to distribute their products and technologies globally, making more contributions to world economic development.

"We've seen some pushback in the EV sector, for example, out of the United States and Europe. But through clever management of the various stakeholders around the world, I think China can take its technical lead and really make that a great basis for distribution of Chinese intellectual property around the world in a way that benefits its customers outside of China and benefits companies back home as well."

Standard Chartered, with a long history in China, has actively aligned its business strategies with the country's economic trends, he said, citing the bank's focus on cross-border businesses and its ability to support Chinese companies in their international expansion.

As for the prospects of tariffs and trade disputes that could perhaps prompt a global growth slowdown, he believes many of the tariffs that have been suggested around the world will not happen because everybody loses from tariffs.

Even if there are very substantial tariffs applied by the United States on Chinese imports, that would have a "noticeable but not overwhelming "impact on Chinese economic growth, he said, adding that is because China has tools at its disposal, like targeted fiscal stimulus and monetary stimulus, to offset such an impact.

Winters expressed support for the Chinese government's efforts to promote the high-quality development of the private sector. He emphasized the importance of policy consistency and predictability for private companies to thrive. "The messages are very supportive of the private sector," he said, "I'm very encouraged about the opportunities for private sector growth in China.

"We are very confident in the Chinese economy and in the private sector."

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