China’s stable, prosperous economy draws more foreign investment

2019-05-21
chinadaily.com.cn

The high-quality development of the Chinese economy, as well as the country’s ongoing reform and opening-up, has continued to attract foreign investment in the first half of the year, People’s Daily reported.

The Shanghai Municipal Government issued on May 6 certificates of regional headquarters and R&D centers to 27 overseas companies, including Apple, Honeywell and Nike, indicating more multinationals are expanding their businesses in China. Investment guru Warren Buffett also said his company Berkshire Hathaway would add more investment to China at a shareholder meeting early this month in the US.

Statistics from the Beijing Municipal Commerce Bureau showed that, in the first quarter, the capital attracted 45 foreign enterprises ranging from information transfers to software and information technology services, up 50 percent year-on-year, with actual use of foreign capital reaching $1.29 billion, up 3.1 times on a yearly basis.

According to statistics from the Ministry of Commerce, China set up 13,039 new foreign-funded enterprises through April this year, and the actual use of foreign capital reached $45.14 billion, up 6.4 percent year-on-year.

High-tech manufacturing and the service industry stand out as highlights in foreign investment in the first four months, with the actual use of foreign capital of the former reaching 33.4 billion yuan ($4.83 billion), up 12.3 percent, and that of the latter up 73.4 percent to 52.5 billion yuan during the same period.

Major countries investing in China sustained their efforts at a higher pace during the Jan to April period, with investment from the Republic of Korea and Germany increasing 114.1 percent and 101.1 percent respectively. Actual investment from the EU grew 17.7 percent during the same period, and the ASEAN countries invested in 437 new enterprises, an increase of 33.6 percent.

Countries involved in the Belt and Road Initiative established 1,050 new enterprises in China in the first four months, a growth of 23.5 percent, and the trade volume between China and these economies exceeded $6 trillion in the past six years.

The central and western regions of China, as well as the country’s free trade zones, witnessed a steady increase of foreign investment through April, with the actual use of foreign capital in the western region up 9.6 percent to 21.2 billion yuan, and that of the free trade zones up 11.8 percent.

According to the Global Investment Trends Monitor issued by the United Nations Conference on Trade and Development, foreign investment in China’s market continued to grow, ranking first among developing countries last year, despite the persistent decline of global foreign direct investment.

China’s broad market prospects and improving business environment continue to make it the top destination for global investment, according to the 2019 China Business Climate Survey Report issued by the American Chamber of Commerce in China and consulting firm Deloitte in February 2019.

As a country with a population of 1.4 billion and over 8 million university graduates every year, China also boasts the most comprehensive industrial supply and infrastructure facilities. Huge market demand as well as bright prospects offer foreign investors more opportunities.

The approval of the Foreign Investment Law, as well as the country’s further reductions on the negative list for foreign investment, have all promoted and protected foreign investment in China.

With more foreign investment, as well as frameworks for new technology such as 5G, high-speed rail, new-energy vehicles and AI, the Chinese economy maintained stable momentum with a 6.4 percent to 6.8 percent growth in GDP over 14 consecutive quarters.

As a major trading partner for over 130 countries worldwide, China is not only a huge factory for the world, but also a “world market” open to products from other countries. Despite the rise of unilateralism and protectionism in the world, the Chinese economy still appears promising.