Investing in China is investing in the future (Open Talk)
Li Yuee
Despite the impact of repeated epidemics and other unfavorable factors, China's actual use of foreign capital in the first quarter of this year still increased by 25.6% year-on-year, continuing a high double-digit growth.
Looking at the world, the unswerving determination to expand opening up, a sound industrial system, a market with huge potential, a continuously optimized business environment and an atmosphere of innovation and entrepreneurship have laid the foundation for the long-term improvement of China's economy. A source of confidence for the future.
The consistent opening-up policy and development determination have stabilized the expectation of foreign investment in China, and it is safe to invest in China.
The current economic de-globalization, unilateralism and protectionism tendencies are intensifying, and the uncertainty and complexity brought about by the conflict between Russia and Ukraine make investors pay more attention to avoiding risks.
China insists on opening up to the outside world in a wider range, wider area and deeper level. The Foreign Investment Law of the People's Republic of China, which was implemented on January 1, 2020, has created a legalized, internationalized and convenient business environment and granted foreign investors legitimate rights and interests. The protection of the rule of law in China demonstrates China's determination to further open up to the outside world.
A sound industrial system and a huge market have improved the stability of foreign investment and production, and investing in China is very reliable.
China's industry has 41 major categories, 207 medium categories and 666 minor categories. It is the country with the most complete industrial system in the world, and plays the role of "stabilizer" and "ballast stone" in the global industrial chain and supply chain.
Not only is the industrial system sound, but China also has high-quality and large-scale industrial workers, with more than 50 million highly skilled personnel, and has a significant comparative advantage. In the "Global Manufacturing Competitiveness Index" released by the United Nations Industrial Development Organization in 2021, China in second place.
At the same time, with a population of more than 1.4 billion and a middle-income group of more than 400 million, China is the world's largest consumer market.
Not long ago, David Ramirez of the London Institute for International Strategic Studies, a British think tank, judged in his article "New Crown Epidemic: Global Trade and Post-pandemic Supply Chain" that after the epidemic, reliability will replace low cost and become the key to supply chain management. main target.
China has won a "vote of confidence" for foreign investment with its unique advantages.
High-quality development and continuous optimization of the business environment have provided more opportunities for foreign investment, and investment in China is sustainable.
China's economy has shifted from a high-speed growth stage to a high-quality development stage.
For foreign companies, this means an increase in market opportunities.
Foreign-funded enterprises with technological advantages can better leverage their technological advantages and share market dividends in the transformation and upgrading of China's industries and the cultivation and development of new kinetic energy.
Foreign institutions with brand advantages and product quality advantages are more in line with the upgrading of the Chinese consumer market.
At the same time, China is committed to building a market-oriented, legalized, and internationalized business environment, and continues to deepen the reform of "delegating power, regulating services," and deepening the reform.
On April 10 this year, China issued the "Opinions of the Central Committee of the Communist Party of China and the State Council on Accelerating the Construction of a Large National Market", which stipulates that the basic rules and regulations of the market are unified, the market facilities are connected at a high standard, and the market for factors and resources, and the high-level commodity and service market are unified. Unification, fair and unified market supervision, etc. put forward clear requirements and arrangements.
The development of the national unified market will promote the continuous optimization of industrial formats, effectively eliminate market barriers and administrative barriers, reduce transaction costs for foreign investment, and further improve convenience.
Policy support to encourage foreign investment and a good atmosphere for innovation and entrepreneurship have injected vitality into foreign investment, and it is very comfortable to invest in China.
China attaches great importance to attracting foreign investment, and various localities have formulated and issued systematic support and encouragement policies, covering land, talents, finance and taxation and other aspects.
The one-stop foreign investment service platform has greatly improved the work efficiency of foreign investment.
The level of urbanization in China is getting higher and higher, and the degree of openness is getting higher and higher. Modern international metropolises such as Beijing, Shanghai, Guangzhou, Shenzhen, and Qingdao are constantly emerging, which also makes it easier for foreign-funded enterprises to integrate into China.
China continues to carry out the "Mass Entrepreneurship, Mass Innovation" activities, and the whole society is full of innovation and entrepreneurship vitality, especially the tens of millions of college graduates in China every year, showing the vitality.
This also provides a good environment for the business development of foreign investment.
(The author is a professor at Qilu University of Technology)