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Executives are 'still positive' on outlook

By Wei Tian in Shanghai (China Daily) Updated: 2014-06-04 06:58

Kearney survey of 300 firms ranks nation as good candidate for FDI

Global executives are still optimistic about the Chinese economy, ranking the country the second most attractive destination for foreign direct investment, a report showed on Tuesday.

The report, 2014 Foreign Direct Investment Confidence Index, was prepared by consultancy A.T. Kearney Inc. It surveyed C-level executives and regional and business leaders from 300 large companies in 26 countries spanning all sectors.

Executives are 'still positive' on outlook
Executives are 'still positive' on outlook

China came in second after the United States. China was in first place for 10 years, until 2013, when the US moved ahead.

The outlook for China is slightly better this year, with 39 percent of the respondents voicing more positive sentiment, compared with 38 percent last year and 34 percent in 2012.

"China in 2014 has the 10th most positive outlook among all countries, while China itself has only seen a higher score twice before (in 2005 and 2004). We can see that this year, global executives are still optimistic about the Chinese economy," said Johnson Chng, managing partner of A.T. Kearney Greater China.

The findings came amid worries that a slowing Chinese economy and global disputes would weigh on foreign investors' confidence, especially those from Europe and the US.

A survey by the European Union Chamber of Commerce in China suggested last week that nearly half of European businesses fear their "golden times" in China are over, while the US Chamber of Commerce recently noted that "concerns among US companies are intensifying" following bilateral tensions regarding information security and the impact of China's anti-monopoly campaign on foreign companies.

Despite the challenges and changes in the Chinese investment environment, Kearney indicated that there are still great opportunities for multinational corporations' direct investment in China.

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