Turkey must create a roadmap against Chinese investments

Speaking at the December assembly meeting of the Aegean Region Chamber of Industry (EBSO), Chairman of the Board Ender Yorgancılar stated that positive growth expectations in the global and European economies offer opportunities for Turkey, but that China's investments in European Union countries, in particular, are creating a worrying picture for Turkish exports.

Yorgancılar said, "Chinese capital investing in companies within the EU could eliminate our export opportunities in these areas." Stating that it is essential to comprehensively analyze the products coming into our country from China, Yorgancılar pointed out that the majority of trade consists of products in only a few categories. "We are conducting a study on this; when it is completed, we will share it with the Union of Chambers and Commodity Exchanges of Turkey (TOBB), and then we can present it to the ministry. We must not forget that 40 percent of Turkey's current account deficit is caused by imports from China. Perhaps introducing additional taxes could be a solution, but what is truly important is to develop a common business culture and strengthen production," he said.

Touching on economic indicators, Yorgancılar noted that while exchange rates and inflation have followed a downward trend in recent years, interest rates and foreign exchange still do not meet expectations. "I estimate that inflation will be at most 31 percent by the end of December. If we focus on structural reforms, economic recovery could be faster and more permanent," he stated.

NEW BALANCES IN PRODUCTION AND FINANCING

Yorgancılar pointed out that the entry of foreign capital into Turkey could increase next year. Stating that the PMI index has remained below 50 for the last 20 months, Yorgancılar indicated that this shows production difficulties in the industry. Along with this, he noted that Turkey has reached its lowest levels in seven years in CDS, known as the risk premium, and assessed, "We are currently at 218 points. If we can pull the CDS below 100, with the decline in inflation and the easing of pressure on foreign exchange, Turkey could become a more attractive place for foreign investors next year."

Addressing the credit opportunities for exporting firms, Yorgancılar recommended rediscount credits sourced from the Central Bank to industrialists seeking commercial loans. "For those who export, rediscount credits are the lowest-interest and most advantageous borrowing tool. These credits will continue to be the most suitable option for exporters in 2026. Those who cannot access rediscount credits can turn to TL loans," he said.

News Source: 12punto