BEIJING, March 7, 2024 /PRNewswire/ — A news report from China.org.cn on the foreign investment in China:
At China’s “Two Sessions” in 2024, the country set a GDP target of “around 5 percent,” and underscored the development of “new quality productive forces” as well as the pursuit of higher-standard opening up, a gesture that sends out positive signals.
Tim Cook, CEO of Apple Inc., said that he “remains optimistic about China over the long term.”
There are statistics that back up Cook’s attitude: In January 2024, 4,588 new foreign-invested companies were set up in China, a year-on-year increase of 74.4%. The amount of foreign investment in actual use increased by 20.4% month to month. Such figures proved that despite all the uncertainties in the global economy, China remains an attractive destination for foreign investment.
Besides the considerable amount, the structure of foreign investment in China has also been optimized.
The ratio of foreign investment in high-tech fields is being enhanced, and more projects featuring industry-leading technologies and innovation have appeared. In recent years, a number of multinational corporations, including BASF, ExxonMobil, and Siemens, have established sci-tech innovation and development centers in Guangdong province, China. In Jiangsu province, many foreign-invested companies have reinvested their undistributed profits (unrepatriated) in China, laying an eye on high-tech industries like photovoltaic products, special purpose ships, automobile manufacturing, and electronic components manufacturing.
The considerable amount of foreign investment with an improved structure in China is a result of constant and effective policies adopted by the country. In August 2023, China issued a 24-point guideline containing 59 specific measures, which were designed to improve the climate for foreign investment. Over six months into its launch, more than 60% of the measures have been implemented or are on their way.
Jens Eskelund, president of the European Union Chamber of Commerce in China, believed that the “24-point guideline” has brought benefits to EU-invested companies in tax incentives, helped solve visa-related problems for EU personnel coming to China, facilitated cross-border data flow and secured an equal playing field for the companies to participate in government procurement. AmCham China (American Chamber of Commerce in China) recently released the “China Business Climate Survey Report,” in which many American companies expressed their acknowledgment of China’s economic performance and the ameliorated business environment, in a way consolidating multinational companies’ confidence in investing in China not only for now but also in the long run. Not long into 2024, many foreign-invested projects have closed deals or officially started construction, embodying foreign companies’ passion for keeping their investment up in China.
This year’s report on the work of the government clearly stated that “we will intensify efforts to attract foreign investment”, and that market access restrictions are to be further lifted, and services are to be strengthened for foreign investors, to make China a favored destination for foreign investment. New policies for keeping foreign investment stable are in the works, which for sure will unleash more impetus for China to become a magnet for foreign investment.
There are indeed downsides in China’s economic performance at present, like a slowdown in its GDP growth rate, and changes in its total volume of foreign investment. Various factors have induced these problems, including the complexity of the global economic landscape, the cyclical development of China’s economic structure adjustment, and the competition between major countries. The so-called “China’s economy is peaking” is not an objective description of China’s development. If misled by such noises, one would only miss opportunities.
The year 2024 is a year of action. Policies to keep stable foreign investment, foreign trade, and the economy as a whole will be implemented. The reliable and vibrant business environment in China will bring more opportunities for foreign investors.
China Mosaic
http://www.china.org.cn/video/node_7230027.htm
China is attracting foreign investment, in stable amount under an optimized structure
http://www.china.org.cn/video/2024-03/07/content_117046076.htm
SOURCE China.org.cn
