ZCZC
BCN-12
CHINA-ECONOMY-FOREIGN-INVESTMENT
China remains strong magnet for foreign investment : Economic Watch
BEIJING, Sept. 15, 2019 (BSS/Xinhua) – China’s latest foreign direct
investment (FDI) data have testified the country’s stronger appeal to foreign
investors who have shown widespread optimism in a fast-growing market.
In the January-August period, FDI expanded 6.9 percent year on year to 604
billion yuan (about 85.36 billion U.S. dollars). FDI inflow grew 3.2 percent
year on year to 89.26 billion dollars, data from the Ministry of Commerce
showed.
These gains were hard-earned given the global FDI flows had declined for
three consecutive years. In 2018, global FDI went down 13 percent, and
developed countries saw a record low FDI inflow since 2004, according to the
World Investment Report 2019 published by the United Nations Conference on
Trade and Development.
The circumstances did not dampen foreign investors’ enthusiasm in
increasing investment China. A total of 27,704 new foreign-funded enterprises
were established in the first eight months of this year.
China bucked the trend of the global FDI slide with a huge consumer market
that is highly attractive to the world’s major multinationals, said Shen
Jianguang, a chief economist with JD Digits.
“Another factor is that the country has kept reducing restrictions and
limits on foreign investment’s access to a wide range of sectors,” Shen said,
noting that China’s opening-up keeps gaining momentum.
According to a new survey by the American Chamber of Commerce in Shanghai
on 333 U.S. firms, respondents reported an improving regulatory environment
in China and that the country’s operational environment for foreign companies
showed significant signs of progress.
Over 59 percent of respondents said increasing consumption will be the top
factor to benefit their industry in the next three to five years.
Another survey released earlier this year by the American Chamber of
Commerce (AmCham) in South China showed that 46 percent of the 240
respondents consider China as the top destination in their global investment
plans, while 24 percent consider China as their second to third priority.
The reinvestment in China in 2019 is expected to rise by a whopping 37.9
percent, reaching 19.4 billion U.S. dollars among all membership enterprises
of AmCham South China as the consumer market evolves in China, said Harley
Seyedin, president of AmCham South China.
“U.S. companies in China continue to grow and tend to be profitable. We
certainly don’t want to fall behind because there’s friction going on,” said
Seyedin in an interview with Xinhua.
The country’s continued opening-up has also attracted investors from a
wider range of countries. Foreign investment from the Republic of Korea
surged 45.3 percent year on year in the first eight months, while FDI from
the countries participating in the Belt and Road Initiative maintained steady
growth of 6.3 percent, according to the Commerce Ministry.
BSS/AFP/HR/1500