A person walks previous a closed and boarded up restaurant within the Metropolis of London on August 21, 2020.Tolga Akmen | AFP | Getty ImagesSINGAPORE — The significance of China’s function on this planet economic system has not diminished regardless of rising geopolitical tensions, mentioned Douglas Flint, chairman of Customary Life Aberdeen.”I believe China is massively necessary to the worldwide economic system and to international commerce,” mentioned Flint, who spoke to CNBC’s Nancy Hungerford throughout this 12 months’s digital Singapore Summit.”Seven months in the past, each single firm on this planet just about noticed its development alternatives in Asia, led by China. I do not suppose that is modified,” he mentioned on Wednesday. A really sturdy center class and the need to devour another way will proceed to drive the economic system, he mentioned.Enterprise operates underneath the umbrella of a geopolitical relationship, and when that relationship is tense, it’s harder for enterprise to function.Douglas Flintchairman of Customary Life AberdeenBut Flint acknowledged that geopolitical tensions can current new challenges for corporations.”Enterprise operates underneath the umbrella of a geopolitical relationship, and when that relationship is tense, it’s harder for enterprise to function,” he mentioned. “Having mentioned that, on the enterprise stage, our personal relationships with our counterparts and shoppers in China continues to be very sturdy. It’s not impacted at that stage, however clearly there’s an overriding political relationship that makes issues tough.”He additionally identified that there is a distinction between the political rhetoric and precise strikes on the bottom. “There are a lot of parts within the Chinese language economic system which might be persevering with to open up, and we have seen most of the main U.S. corporations — BlackRock, Vanguard, JPMorgan — starting to broaden their operations, even throughout this era in China,” Flint mentioned.That exhibits continued progress towards the combination of the Chinese language economic system into the worldwide economic system that either side have aspired to, he mentioned.”However the political rhetoric is considerably distant from what’s occurring on a business aspect. I believe we have to try to convey the 2 again collectively and, as I mentioned, I believe that ought to be carried out by means of engagement.”Weaning off fiscal supportFlint additionally identified that many economies have turn out to be depending on authorities help on account of the coronavirus disaster, and it will likely be tough to wean them off help.”That authorities help was well timed,” he mentioned. “It was extraordinarily heavy when it comes to its influence, however it could possibly’t go on without end.”International locations rolled out beneficiant fiscal packages to assist companies and people within the wake of the Covid-19 outbreak and subsequent lockdowns. Nonetheless, concern has grown over what’s going to occur when that help is withdrawn or runs out.”I believe the problem for governments the world over is how you can wean the economic system off governmental help,” he added.The best way to get the economic system functioning in an impartial manner once more … goes to be crucial.Douglas Flintchairman of Customary Life AberdeenIt can be a “important” problem as a result of confidence will fall as folks begin dropping their jobs. “That then has type of a multiplier impact on what occurs, when it comes to folks’s willingness to exit and spend, and do the issues that will convey the economic system again.””The best way to get the economic system functioning in an impartial manner once more … goes to be crucial, and how you can use the firepower that the central banks and governments may have left, to focus on that very particularly and effectively to the sectors that want it,” he mentioned.Flint added that the necessity to construct resilience in varied sectors is a crucial lesson from the coronavirus. He mentioned the banking system was bolstered after the worldwide monetary disaster, and that helped it to face up to an “extraordinary stress check” this 12 months. “If the amount of cash that had been spent strengthening the monetary system had been spent on strengthening the well being service and different elements of the economic system which were severely examined within the pandemic, we most likely would have had a a lot decrease value to society,” he mentioned.