Commentary: The wise are not confused, investing in China needs a big pattern

Xinhua International Times Review | Review: Wise people are not confused, investing in China needs a big pattern

　　Xinhua News Agency, Beijing, April 27th.

　　Xinhua News Agency reporter Fu Yunwei Xu Chao

　　Is China's economy viable? Is there any prospect for investing in China?

　　In response to the above problems, different perspectives lead to very different views; different perspectives lead to very different conclusions; different patterns lead to very different decisions.

　　The British "Financial Times" recently reported that a number of international investment banks are promoting ambitious business expansion plans in Shanghai, and their strategies will not be changed due to the current new crown epidemic prevention and control measures.

　　The layout of global investment banks has always been regarded as a barometer for predicting economic prospects.

At the critical moment of Shanghai's epidemic prevention and control, the "retrograde" decision of the investment bank is tantamount to casting a vote of confidence in the Chinese economy.

　　This inspires global investors, the more they face difficulties and challenges, the more they must grasp the big picture, so as to make far-sighted decisions on the Chinese market.

　　To grasp the big picture, it is necessary to deeply understand the precious and certain dividends contained in China's smooth domestic circulation and the promotion of domestic and international double circulation.

　　In the past decade or so, China's dependence on foreign trade has dropped from a high of 67% to 34.8% in the first quarter of this year; while the contribution rate of domestic demand to China's economic growth has remained high, at 79.1% last year.

　　This rise and fall shows the kinetic energy changes of China's economy from the outside to the inside. Behind it is the super-large market scale and industrial cluster strength accumulated by China over the past ten years, which gives China's economy a stronger ability to resist external risks and is effectively stable. growth certainty and return on investment expectations.

　　A recent report by the American Chamber of Commerce in China shows that even under the influence of factors such as the epidemic, more than 60% of the companies surveyed plan to increase investment in China this year.

The Financial Times quoted a person familiar with Goldman's plans to invest in Shanghai as saying: "Our planning for the business in China is 50 years. A few months of business disruption is not enough to change this strategic thinking."

　　Build yourself up.

The domestic cycle and the domestic and international dual cycle complement each other, and it is the stability and smoothness of the former that enables the orderly integration of the latter.

Together, the two have made China's economy resilient and dynamic, and contributed valuable certainty to the uncertain world economy.

　　To grasp the overall situation, we must have a clear insight into the huge development opportunities that China advocates for openness, inclusiveness, win-win cooperation, and promoting the building of an open world economy.

　　In the first quarter of this year, China's actual use of foreign capital was 379.87 billion yuan, a year-on-year increase of 25.6%.

Behind this is a series of major measures for China to continue to expand a high-level opening to the outside world.

　　From applying to join the Comprehensive and Progressive Trans-Pacific Partnership Agreement and the Digital Economy Partnership Agreement, promoting the construction of the “Belt and Road” with higher quality, to promoting the entry into force of the Regional Comprehensive Economic Partnership Agreement, and in-depth implementation of foreign investment permits Entering the Negative List - China's determination and actions to expand opening up have reassured investors.

　　Even under the influence of unfavorable factors such as repeated epidemics at home and abroad, geopolitical tension, and the sharp turn of the Federal Reserve's monetary policy, many multinational companies are still setting up new projects or new production lines in China, and regard the Chinese market as a safe haven and source of wealth.

According to a recent report by the American Chamber of Commerce in South China, more than 90% of the companies surveyed chose China as one of their investment destinations.

In 2022, 76% of US companies have plans to reinvest in China.

　　“From an economic standpoint, some of the smartest and most capable international leadership has come from the Chinese government, which has struggled to overcome challenges. These factors all lead us to believe that China will be a great place to invest in the long term.” Tanara, Australia Capital chairman John Wiley told clients last week.

　　In response to reports of foreign capital withdrawing from China, Rosie Roth, former director of the Economic and Business Policy Office in London, said that the best way to counterattack is to speak with facts.

The scale of China's attracting foreign investment has increased year by year, which has proved China's attractiveness to foreign investment.

　　"The most important thing is not to see what they (foreign-funded enterprises) say, but to see what they do, especially where they put their money," he said.

　　To grasp the big picture, we must be keen to explore the new development dividends released by China's entry into a new stage of development and accelerating the promotion of innovative development, green development, and high-quality development.

　　Data show that China has authorized 2.531 million invention patents in the past five years, with an average annual growth rate of 13.4%; the number of international patent applications under the Patent Cooperation Treaty (PCT) has ranked first in the world for three consecutive years, and it is changing from a country that introduces intellectual property to a country that creates intellectual property. .

　　You can see the whole panther at a glance.

At present, based on high-quality development, China is promoting supply-side structural reform, accelerating the transformation of new and old kinetic energy, and stimulating market innovation vitality and green development momentum.

It can be said that a series of new policies for high-quality development meet the needs of China's economic transformation and create new development dividends.

　　"The global innovation center is moving eastward to Asia. China's performance is outstanding. China is the only middle-income economy in the top 15 of the Global Innovation Index," said Liu Hua, director of the China Office of the World Intellectual Property Organization.

　　"The company is optimistic about the fundamentals of China's economy and the prospects of the digital economy, low-carbon and other fields. It is very excited about the continuous expansion of high-level opening up and will increase investment in China." said Yu Feng, President of Honeywell China.

　　China's economy is an ocean, not a small pond.

A gust of wind and rain can overturn a small pond, but not the ocean.

The repeated and short-term fluctuations of the epidemic will not crush China's economy, but will only temper China's governance and resilience, and stimulate China's innovation and vitality.

　　In the current context, the well-known Wall Street investor Warren Buffett’s so-called “others are fearful, I am greedy” creed may be interpreted as: In special times, only investors who grasp the big picture can make long-term plans and finally reap Chinese dividends.