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Country still a magnet for foreign investment

By YAO YUXIN | China Daily | Updated: 2024-03-11 08:50
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Jiang Ying

Countering assertions of a foreign capital exodus, a national political adviser who heads a foreign company in China said the country remains a magnet for foreign investment, bolstered by its unyielding commitment to refining its business environment and fostering innovation-led growth.

Jiang Ying, a member of the 14th National Committee of the Chinese People's Political Consultative Conference and chair of market consultancy Deloitte China, referenced data from the Ministry of Commerce to corroborate her conclusion.

The ministry said foreign direct investment in 2023 was over $1.1 trillion yuan ($155 billion). Jiang said that last year over 53,000 new foreign-invested enterprises were established in China, marking a year-on-year increase of 39.7 percent. Notably, the structure of FDI is also evolving, with high-tech industries hitting a record high, comprising 37.3 percent of total investment.

These statistics, Jiang said, provide a solid testament to China's dynamic and attractive business environment. "We serve a lot of foreign investors. They are all positive about the Chinese economy," she said.

Jiang said she has always been keenly interested in topics such as the country's business environment, innovation and sustainable development.

She said China has made huge efforts to enhance its business environment, including the reduction of the negative list for foreign investment. It has opened up numerous sectors such as financial services, healthcare and education.

"The Chinese market belongs to the world," she said. "Everyone is welcome to invest."

She said she wholeheartedly agreed with the five key advantages of the Chinese market outlined in this year's Government Work Report: China's distinctive institutional strengths, the massive scale of market demand, a comprehensive industrial supply system, a large and high-quality workforce, and the country's continuous investment in research and development.

She said these factors collectively create a wealth of opportunities for all business entities in the Chinese market. Especially with China advocating the development of new quality productive forces, symbolizing high value, high tech, high efficiency, and a greener future, businesses are empowered to achieve more.

Companies deciding to leave or stay is a normal part of their business strategy, Jiang said. However, she said the Chinese market is too significant to overlook and possesses strong allure.

No market is easy, Jiang said, and the days when foreign companies could simply replicate their products or supply chains in China and achieve success are gone. As China has developed, they now need to bring higher quality, higher value goods and supply chains to prevail in the fiercely competitive market.

"I'm sure when this product is competitive in the Chinese market, it will also be able to serve globally," Jiang said. "So, this is not only for a China-for-China strategy, but also is a China-for-global strategy."

 

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