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China's "magnetism" in attracting foreign investment has increased significantly (International Forum)

  Our reporter Jia Pingfan

  China's attractiveness to foreign investment continues to increase.

A few days ago, the Ministry of Commerce of China released the latest data showing that in the first half of 2021, China’s actual use of foreign capital was 607.84 billion yuan, a year-on-year increase of 28.7%, and an average increase of 12.7% in two years; the number of enterprises increased rapidly, with more than 23,000 newly established foreign-funded enterprises nationwide. Increased by 47.9%, the total number of establishments exceeded 1.06 million; the investment structure was more optimized, and the actual use of foreign capital in the manufacturing industry increased by 9.9%, the highest growth rate in the same period in the past 10 years; the actual use of foreign capital in the service industry increased by 33.4%.

  Once the data was released, it attracted widespread attention from foreign media.

The Russian "Newspaper" published an article that China has succeeded in attracting foreign investment with stability, predictability and a huge market.

Foreign businessmen have increased investment

  "In the context of the overall decline in the global attraction of foreign direct investment, China's actual use of foreign investment has increased substantially, which is impressive." The Russian "Newspaper" published an article on July 25, citing data from the Ministry of Commerce, saying that in the first half of this year, China's new 23,000 foreign-funded enterprises have been established, and the total number has now exceeded 1 million.

China's actual use of foreign capital increased by 28.7% year-on-year, and the growth rate of actual use of foreign capital was the highest in the same period in the past 10 years.

For the first time, China has surpassed the United States in attracting foreign direct investment.

  "U.S. toy manufacturers double their investment in China," a recent article on the subject of Yahoo Finance said that currently, hit by tariffs, epidemics and rising costs, some global manufacturers are reducing their reliance on Chinese factories.

But Ryan Guniger, CEO of Kids2, did the opposite.

The Atlanta-based toy and baby products manufacturer recently spent $20 million to open a new factory in the Yangtze River region in central China.

Facts have proved that China's dense supply network, still competitive labor costs, and growing domestic market are too attractive for foreign investment.

  "Walmart said that it will invest 3 billion yuan in Wuhan in the next five years; Tesla is expanding the production capacity of its Shanghai plant and intends to establish another research center; Disney will continue to build a new theme park in Shanghai Disneyland; Japan According to a survey conducted by the Trade Promotion Agency, only 9.2% of Japanese companies indicated that they are or are considering moving their production capacity out of China, the lowest level in five years. The domestic epidemic has not only promoted the domestic economy to rebound relatively quickly, but also enhanced China’s attractiveness to foreign investment.

Many foreign companies have turned to China to invest more money and regard China as a production base and an important growth market for their products.

  Earlier this year, the "Global Investment Trends Monitor" report released by the United Nations Conference on Trade and Development showed that in 2020, China has surpassed the United States to become the world's largest recipient of foreign direct investment (FDI), with FDI inflows rising 4% to US$163 billion in the year. (About 1.06 trillion yuan).

  The annual report "China Business Environment Survey Report" and the "White Paper on American Companies in China" released by the American Chamber of Commerce in China this year show that American companies in China generally attach great importance to the Chinese market.

Recent survey data shows that 50% of member companies recognize the recently improved business environment in China; 85% of member companies have no plans to move out of their production capacity and supply chain; 75% of companies have no plans to move out in the short term (about two or three in the future). Year) has a high degree of confidence in continuing to enjoy reform and opening up measures in the Chinese market, and will continue to regard China as one of the three major investment destinations in the world.

Great opportunity not to be missed

  British Reuters reported that, as the world's second largest economy, China's economic recovery is "astonishingly fast", which is the biggest bright spot in attracting foreign investment.

  The US "Wall Street Journal" reported that facing the severe test of the new crown pneumonia epidemic since 2020, China's total economic volume has reached a "big step" of one hundred billion yuan, and its economic strength has consolidated its status as a "world factory" and further Expanded its share in global trade.

The report also cited data estimated by the United Nations Conference on Trade and Development and pointed out that China’s share of foreign investment in the world has increased significantly to 19% in 2020, indicating that China is “accelerating toward the center of international finance”.

  On July 15, the National Bureau of Statistics of China announced the national economic performance data for the first half of 2021.

According to preliminary calculations, the gross domestic product in the first half of the year was 5,32167 trillion yuan, a year-on-year increase of 12.7% at comparable prices; an average growth rate of 5.3% over the two years, 0.3 percentage points faster than the first quarter, and economic development showing a steady and steady strengthening and steady improvement. .

  According to CNN, China’s latest economic data highlights why it is worthwhile for many American companies to stay in China.

With the consolidation of the economic recovery, China’s economic growth of 7.9% in the second quarter is worth noting. This will enable China to easily achieve its annual growth target of more than 6% this year.

For many people, considering the size and continued growth of the Chinese consumer base, China is a great opportunity not to be missed.

  Foreign media have noticed that a well-developed supply chain with infrastructure, a continuously optimized business environment, and a large domestic market for consumer groups are also the attractions of China's attraction of foreign investment.

  According to a report from Yahoo Finance, the CEO of Kids2, Gunigall said: “For us, having a central position in the Chinese market is more important than any benefits gained in other markets.” He saw some suppliers and competitors. I set up factories in other countries, but after discovering that the new factory had problems with high costs, labor shortages, and difficulties in finding suppliers, I had to move back to China.

He said: "Our products require sewing, electronic components, steel, plastics-these are all necessary in China." In central China, it is easier and cheaper to recruit workers than in the affluent coastal areas.

In addition, building a factory in China also makes it easier to sell products to about 400 million middle-class groups in the domestic market.

  Solonnikov, director of the Russian Contemporary State Development Institute, said that China has left a good impression on Western investors mainly for its stability.

He said: “Investors like a secured and predictable investment environment, and the current government’s work is stable, with which it can reach an agreement, and believe that the agreement reached today will not be cancelled tomorrow. China is just such a country.”

  Expanding opening up is the only magic weapon for China to attract foreign investment.

According to Reuters, on July 26, China announced the Hainan Free Trade Port's negative list of cross-border service trade, allowing foreign individuals to apply for opening securities accounts or futures accounts.

According to the report, Chinese Vice Minister of Commerce Wang Shouwen stated that (foreign individuals) can also apply for qualifications in securities investment consulting and futures investment consulting.

The next step will be to implement the cross-border service trade negative list exploration in the pilot free trade zone and follow-up nationwide, and further open up to the outside world in terms of financial reform and innovation.

Long-term optimistic about the Chinese market

  "China is an important growth engine for our company in the world, and I believe that from the end of this year to next year, the Chinese market will occupy more shares, and we are full of hope for the future." Said Wang Hao, President of Siemens Healthcare Greater China, "Next We must also actively participate in China’s innovation ecosystem. In the future, a large number of innovations in China will become the first level. If we, as a foreign-invested company, cannot actively participate, we will lose our future."

  Rongding Consulting Group analyst Lisenke told Bloomberg that foreign companies, including US companies, will continue to invest in China because during the epidemic, China is still one of the most resilient economies in the world, and China The future growth potential is still stronger than most other major economies.

  According to the "2021 Business Confidence Survey" report recently released by the European Chamber of Commerce in China, 73% of the companies surveyed achieved profitability last year, and about 68% of the companies are optimistic about the business prospects of their industries in the next two years. 60 % Of companies plan to expand their business in China this year, and a quarter of companies are or are about to strengthen their supply chain construction in China.

  The "British Companies in China: Sentiment Survey 2020-2021" released by the British Chamber of Commerce in China at the end of last year stated that the size of the Chinese market and its importance to the global economy determine that it is still the preferred investment destination for British companies in China.

The survey results show that 49% of British companies regard China as their preferred investment destination, and 44% of the British companies surveyed said they would increase their investment in China in 2021.

  According to the 2020 membership survey recently released by the US-China Business Council, nearly 70% of the interviewed US companies are optimistic about the business prospects of the Chinese market in the next five years.

Based on the "long-term confidence" in the Chinese market, 87% of the interviewed US companies indicated that they do not plan to move their production lines out of China.

  The Washington Post report quoted the comment of Eswar Prasad, a trade policy professor at Cornell University in the United States: The status of a growth engine."

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