Tourists visit the Bund waterfront on May 10, 2021 in Shanghai, China.
Wang Gang | Visual China Group | Getty Images
But overall, I think China continues to be a huge opportunity for the private sector.
Chairman of Standard Chartered
“There have been some articles in the media about – is China no longer investable? I don't think so, ”Jose Vinals told CNBC's Hadley Gamble on Wednesday.
A number of sectors could "be a little more challenged now" and investors need to take a closer look at what investments they are making, he said.
"But overall, I think China continues to be a tremendous opportunity for the private sector," he said, pointing out that Beijing has slowly opened up its financial sector and given some international firms access.
The regulatory process in China has been interpreted differently by big names in the financial world, including Ray Dalio, George Soros and David Roche.
Regardless, Vinals said he doesn't expect inflation to be a big problem.
"I still share the view that the inflation we see in the United States, and particularly in other western countries, has an important temporary component," he said.
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Fed chairman Jerome Powell also believes inflation will ease soon and said he wants to see stronger employment reports before the central bank begins tapering its bond purchases.
Vinals said many western countries are operating below their maximum economic potential, adding that the Federal Reserve is likely to hike rates early next year.
“My basis is that inflation won't be a big problem. But it risks becoming a bigger problem than we think, ”he said, admitting that it would“ complicate things ”for the world.
"But I see [inflation] as a downside risk to the global economic recovery rather than a baseline scenario for the economic outlook," he said.