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Neil Shen, founding partner of Sequoia Capital China.

Nelson Ching | Bloomberg | Getty Images

Neil Shen, founding partner of Sequoia Capital China.

WUZHEN, China — The head of Sequoia Capital’s China affiliate said Thursday there are still big opportunities for growth in the country’s digital economy, contrary to many concerns about a slowdown.

“As an investment firm enthusiastically participating in China’s information industry, we still think the Chinese Internet sector has good prospects,” Neil Shen, founding and managing partner of Sequoia Capital China, said at a press event at the World Internet Conference, according to a CNBC translation. “Every year, our investment size and pace has been increasing.”

Shen also said he believes the consumer-oriented internet still has a very big opportunity for future development, and that the industrial-oriented internet will develop quickly, especially with the support of artificial intelligence.

Sequoia is an investor in China’s largest technology companies, including e-commerce giant Alibaba, ride-hailing company Didi and Meituan Dianping, which went public in Hong Kong this year. Shen is also a co-founder of Chinese tourism booking site Ctrip.com.

Many worry China’s burgeoning technology industry will be hit by a national economic slowdown. Some recent data reports have been soft, adding to concerns that increasing trade tensions with the U.S. will cause growth to slow even further. Beijing, for its part, has announced a slew of policy measures in the last few months to support the economy.

Shen, however, pushed back Thursday against concerns about trade tensions and a cold spell for the Chinese tech sector.

“My sense is the digital economy is something unique to China,” he said. “I don’t think it will be affected that much by a U.S.-China trade war.”

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Sluggish global growth and an increase in U.S. output both signal the end of the recent rally in oil prices, economic research consultancy Capital Economics has suggested.

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The U.S. economy grew at a faster pace than expected in the first quarter and posted its best growth to start a year in six years.

First-quarter GDP expanded by 3.2% in the first quarter, the Bureau of Economic Analysis said in its initial read of the economy for that period. Economists polled by Dow Jones expected the U.S. economy increased by 2.5% in the first quarter. It was the first time since 2013 that first-quarter GDP topped 3%.

Exports rose 3.7% in the first quarter, while imports decreased by 3.7%. Economic growth also got a lift from strong investments in intellectual property products. Those investments expanded by 8.6%.

“The upside beat was helped by net trade (exports jumped while imports contracted sharply) and inventories which combined contributed almost 170 bps of the rise,” wrote Peter Boockvar, chief investment officer at Bleakley Advisory Group. “Personal spending though, the biggest component was up just 1.2%, two tenths more than expected as an increase in spending on services and nondurable goods offset a decline in spending on durable goods.”

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Trump tariff threat on autos could bring a German recession

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A trade war between the United States and Europe is coming and the fallout could tip Germany into recession, according to analysts at German lender Commerzbank.

EU leaders have now agreed to negotiate fresh trade arrangements with Washington but have restricted the talks to industrial goods only. That scope of debate is likely to irk President Donald Trump who is under pressure from Congress to win access to EU agriculture markets.

In February, Trump said he would impose tariffs on cars imported from the European Union if U.S. talks with the bloc can’t produce a new deal. The EU has since threatened to tax 20 billion euros ($22 billion) worth of U.S. goods.

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