Ten years of change in foreign investment: China's "door of opportunity" is opening wider and wider

　　On June 3, 2022, a barista at the Shanghai Roastery, Starbucks' largest store in China, makes coffee.

Photo by Xinhua News Agency reporter Liu Ying

　　Xinhua News Agency, Beijing, July 20th.　

　　Xinhua News Agency reporter

　　In early 1999, Starbucks opened its first store in mainland China in Beijing's most prosperous commercial center at the time, the China World Trade Center.

At that time, the price of a cup of Starbucks coffee was about 20 yuan, which was still a "niche" consumption for Beijingers whose monthly salary per capita in the city was just over 1,000 yuan.

　　In the early days of entering China, the American coffee chain giant’s business in China was at a loss.

Since 2010, China has become Starbucks' fastest-growing market in the world.

In the past ten years, the number of Starbucks stores in China has grown by about 9 times to more than 5,700.

　　The Starbucks story is not an exception.

Over the past decade, China has increasingly become the engine of global business development for many multinational companies.

Changes in the investment amount, investment structure and depth of participation of foreign companies in China's economy reflect the high-quality development of China's economy and the opening of the door to "opportunities".

　　Ten years ago, some people worried that the cancellation of tax incentives for foreign companies and the increase in labor costs would greatly reduce the enthusiasm of foreign businessmen to invest in China.

But time has proved that the "magnetism" of the Chinese market has always been strong.

　　Despite the rise of anti-globalization and trade protectionism, China's actual use of foreign capital in 2021 will reach 1.15 trillion yuan, ranking second in the world, an increase of 62.9% over 2012.

Meanwhile, according to the UNCTAD report, global foreign direct investment in 2021 will be $1.65 trillion, an increase of only 27% compared to about $1.3 trillion in 2012.

　　Behind the global investors' love for the Chinese market is the steady development of China's economy and the continuous expansion of the middle-income group over the past decade.

China's economic aggregate will rise from 53.9 trillion yuan in 2012 to 114.4 trillion yuan in 2021.

From 2011 to 2020, the per capita disposable income of residents nationwide has increased by 100.8% in real terms.

China has become the world's second largest commodity consumption market, with more than 400 million middle-income people.

　　Cai Delin, CEO of Starbucks China, used "faster, wider and deeper" to describe Starbucks' development in China over the past decade.

He attributed it to the continuous opening of the Chinese market, the leapfrog development of the Chinese economy, the rapid and steady urbanization process, and the rising income and spending power of residents.

　　"In addition to first- and second-tier cities, we have opened stores in more third-, fourth-, and fifth-tier cities, witnessing China's urbanization development." Cai Delin told Xinhua that even under the epidemic, Starbucks still has an average of 1.5 per day. A new store opened, and plans to open 6,000 stores in mainland China by the end of this year.

New opportunities for high-quality development

　　In addition to quantitative changes, foreign investment in China has also undergone qualitative changes.

In recent years, China has accelerated the construction of a new development pattern, the quality of economic development has been continuously enhanced, and new development momentum has been continuously released.

　　Taking the manufacturing sector as an example, a report released by the Institute of International Trade and Economic Cooperation of the Ministry of Commerce shows that from 2017 to 2021, the actual use of foreign capital in China's high-tech manufacturing industry increased from US$9.89 billion to US$12.06 billion, accounting for the actual use of the manufacturing industry. The proportion of foreign capital increased from 29.5% to 35.8%.

　　Under the guidance of the new development concept of "innovation, coordination, green, openness and sharing", the changes in China's economy have attracted more and more foreign companies to invest their attention and funds in more new fields.

　　Ernst & Young Greater China Financial Services Climate Change and Sustainable Development Partner Li Jing is optimistic about China's development of ESG (environment, social responsibility, corporate governance), climate change, green finance and other fields under the "dual carbon" goal.

　　She introduced that Ernst & Young has established an ESG Management Committee in Greater China, which not only promotes its own practice of sustainable development, but also provides green development and low-carbon transformation solutions for enterprises.

　　In the eyes of Yin Zheng, the global executive vice president of Schneider Electric and the president of China, the charm of the Chinese market comes not only from its large scale, but also from its perfect industrial chain, good innovation environment and human resources.

　　On November 5, 2020, in the technical equipment exhibition area of ​​the 3rd China International Import Expo held in Shanghai, Schneider Electric booth staff were operating "Okken's new generation of pre-intelligence low-voltage complete sets of equipment".

Photo by Xinhua News Agency reporter Li Renzi

　　China is the only country in the world that has all the industrial categories in the United Nations Industrial Classification.

According to the World Intellectual Property Organization, China's innovation index ranking has risen from 34th in the world in 2012 to 12th in 2021.

As of the end of May this year, in Shanghai alone, 848 regional headquarters of multinational companies have been established, and 512 foreign R&D centers have been established.

　　More and more multinational companies are deeply involved in China's continuously improving and upgrading industrial chain.

　　In 2020, Starbucks started construction of the China Coffee Innovation Industrial Park in Jiangsu.

This project with a total investment of nearly 1.1 billion yuan is the company's largest productive strategic investment in the international market, and is committed to building a world-class coffee industry chain in China.

After production starts in 2023, coffee beans from all high-quality coffee producing regions around the world will be processed, roasted, packaged and distributed in China.

　　"China is one of the most competitive and innovative markets in the world. If you can take a leading position in the market in China, you will be able to go global." Yin Zheng said that China is one of Schneider Electric's four major R&D bases in the world.

At present, Schneider Electric has more than 1,800 R&D teams in China, an increase of nearly 30% in the past three years.

New opportunities for a higher level of openness

　　Foreign capital shares more new opportunities for China's development, and it also benefits from China's wider opening to the outside world.

In addition to continuing to promote the opening-up based on the flow of commodities and factors, China has paid more attention to institutional opening such as rules in recent years, and has accelerated the formation of an international, legal and convenient business environment.

　　In September 2013, China's first pilot free trade zone was established in Shanghai.

By this year, the total number of pilot free trade zones has risen to 21.

From 2017 to 2021, China has reduced the negative list of foreign investment access for five consecutive years, and has relaxed foreign investment access in many fields such as manufacturing and finance.

In 2020, the Foreign Investment Law and Regulations on Optimizing the Business Environment will be officially implemented.

　　According to the World Bank report, the global ranking of China's business environment has jumped from the 91st in 2012 to the latest 31st.

　　In 2018, China lifted restrictions on foreign ownership of new energy vehicles.

Subsequently, Tesla became the first wholly foreign-owned vehicle manufacturer in China, and completed construction, production and delivery in Shanghai in just one year.

On November 20, 2020, staff work in Tesla's Shanghai Gigafactory.

Photo by Xinhua News Agency reporter Ding Ting

　　Like many countries, China's economy faces severe challenges brought about by the new crown epidemic.

However, according to a white paper released by the American Chamber of Commerce in China not long ago, more than two-thirds of the companies surveyed said that China is still their top three investment markets in the world; Purchasing moves outside of China.

　　"Looking at the world, China's economic growth vitality and market innovation speed have attracted worldwide attention. Therefore, in the next ten years, Starbucks China also has huge imagination space." Cai Delin said.

(Reporters Chen Yongrong, Wang Siyuan, Zhao Yang, Hu Wenjia, Fang Dong)