中文
By Kulsum Begum
Foreign investment can be a great aid for a nation's development. It often aids in the opening or growth of enterprises, which gives the local populace employment possibilities. By introducing new technology, management techniques, and experience into the nation, lowers unemployment rates and raises living standards by transferring knowledge and skills, encouraging innovation, and boosting the output of regional industries and talent. China, as a resilient economic power, is not an exception to this trend.
International investors' trust in making investments in China is growing daily. In 2019–2021, China's incoming foreign investment established three consecutive records. China's foreign direct investment (FDI) surpassed 1.16 trillion yuan ($164.278 billion) in the first 11 months of 2022, a record high. From January to November 2023, 41,947 foreign investment-backed firms were founded in China, up 32.1 percent year-over-year, indicating robust foreign investment momentum in China.
Notwithstanding the difficulties facing the world economy, China is predicted to keep drawing foreign direct investment because of its advantageous location as a world factory and trading hub and its pro-liberal business policies. China attracts global investment with strong supply chains, better business conditions, economic momentum, laws, and regulations.
Thanks to its strategic location as a global hub for innovation and manufacturing, its improved market-oriented, law-based, and world-class business environment, its high level of opening up, and reforms like expanding visa-free entry and shortening negative lists for foreign investment, favorable tax rates, infrastructure development, strong policies, boosting private economy sectors, bolstering macroeconomic policy coordination, and strengthening international industrial specialization and cooperation and institutions, China is well-positioned to remain an appealing offer for FDI inflows.
China has also canceled all restrictions on foreign investment in the manufacturing sector, expanded opening up in telecommunication and medical services, and decreased operating costs for businesses. Since foreign investment in China is essential for global development as well, the nation has put in place several policies to entice international capital and ensure the stability of the global supply chain.
China's State Council issued 24 initiatives in 2023 to enhance the climate for foreign investment. China is improving the business climate for foreign investors. The Ministry of Commerce is actively putting into practice 59 measures designed to make the country a more hospitable place for foreign investors, following the State Council's recommendations last August. The propaganda that has surfaced in Western media over foreign businesses' withdrawal from China's market is completely unfounded.
According to a recent AmCham China poll, 50 percent of U.S. firms think China is a great place to invest, up five percentage points from the previous year. 30 percent of AmCham members anticipate further connections in 2024, while the bulk of members are still dedicated to the Chinese market. These strong facts debunk the persistent efforts of certain international propagandist media sources to portray China's economic recovery in a bad light. Due to its large economy, developed industrial environment, and expanding middle class, the nation is an attractive market for international investors.
China is willing to engage in more joint ventures with international businesses that want to invest in the nation; foreign direct investment (FDI) is essential to China's goals since it stimulates economic development via capital accumulation, employment creation, the uptake of new technologies, and higher productivity. China, the second-biggest economy in the world, is concentrating on innovative, high-end manufacturing, future industries, quality development, and eco-friendly goods.
China has shown promise for foreign investment in its agricultural, renewable energy, modern services, green energy, logistics sector, the 4th industrial revolution-related sectors, tourism industry, IT, technology, future industries, services, and high-tech manufacturing and manufacturing sectors. However, in recent years, the country's hi-tech manufacturing market has experienced phenomenal growth as a result of large profits made by foreign investors in this sector. Foreign investors should expect great things from China's massive market, well-developed industrial system, and innovative growth strategy. The goal of the Chinese government's investment strategy is also to draw in more domestic and international capital, particularly environmentally conscious or green ventures.
China estimates that its GDP will increase by around 5 percent this year, with a full-year growth rate of 5.2 percent for 2023. According to media reports, with a population of more than 1.4 billion, over 400 million individuals in China's middle-income group, and a per capita GDP of over $12,000, the country has a sizable and very promising domestic market. China is the only nation to possess all of the industrial categories specified by the UN, and other nations cannot match its industrial advantages.
China will keep pushing for a high-level opening up in 2024 to share with the rest of the world the new prospects that the country's modernization has brought about. International investors and the world business community's confidence in China's economy this year has only grown. As the nation moves forward with policies to encourage foreign investment and economic development that improve its competitiveness for foreign companies, China's momentum for growth in inbound foreign investments will continue.
The author is a special commentator on current affairs for CGTN.
