BEIJING (Reuters) -- Leading multinational companies in various fields, such as KFC and Standard Chartered Bank, have recently increased their investment in China, because China remains an excellent investment destination, with beautiful innovation opportunities, complete industrial supporting capabilities, high-quality opening up and a good business environment.
In November 2023, fast-food giant McDonald's announced its decision to increase its stake in its China business from 20% to 48%. "This underscores McDonald's confidence in the development of the Chinese market and the business environment," said Phyllis Cheung, CEO of McDonald's China.
Joe Ngai, chairman of McKinsey & Company's Greater China region, said it was difficult to find another market that could offer the same quality, process and value-for-money business growth.
Multinational companies should continue to invest in China," NGAI said.
Despite the headwinds, it is still a top-notch destination.
According to the Ministry of Commerce, China's real foreign direct investment (FDI) remained at an all-time high of more than 113 trillion yuan (1588..)$900 million).
Earlier data showed that in 2020, China's FDI exceeded 1 trillion yuan (including financial investment) for the first time, and continued to grow steadily in 2021 and 2022.
Although last year this figure was down 8% from 2022, it is still the third-highest in history, and global cross-border investment has shrunk due to slowing world economic growth, rising geopolitical risks and weakening external demand on a high base.
Foreign capital has taken action to show confidence in China's future. Statistics show that in 2023, 53,766 foreign-invested enterprises will be newly established in China, a year-on-year increase of 397%。
Zhang Fei, a researcher at the China Academy of International Economic Cooperation under the Ministry of Commerce, said: "China has attracted about 15% of the world's investment, still ranking first among all developing countries and among the top in the world. ”
Increase high-tech opportunities.
In 2023, China's high-tech industry will become a bright spot in attracting foreign investment. These sectors attracted 4,233400 million yuan, accounting for 37 percent of the total3%, a record high. This proportion has also increased by 12 percentage points.
Pan Yuanyuan, a researcher at the Institute of World Economics and Politics at the Chinese Academy of Social Sciences, said: "China provides fertile soil for the development and expansion of new technologies and new business forms. ”
China's huge market demand and growth potential in the fields of new energy, digital transformation, intelligent manufacturing, and e-commerce, coupled with its perfect industrial supporting capabilities and integration advantages, have prompted more multinational companies to increase investment and R&D efforts in China.
In recent years, China has implemented a series of measures to encourage foreign investment in high-tech industries. These measures include clearing manufacturing projects on the negative list for foreign investment in the Free ** Pilot Zone, increasing the number of high-tech manufacturing projects in the Catalogue of Encouraged Industries for Foreign Investment, and supporting foreign companies to set up R&D centers.
In 2024, high-tech industries will continue to be a hot spot for foreign investment.
Earlier this month, the country's top economic planning agency launched a new batch of flagship foreign-invested projects, with a planned total investment of more than $15 billion, covering a variety of sectors, including biomedicine, automotive manufacturing, new energy batteries and chemical engineering.
We will continue to promote opening up to the outside world.
Over the years, China has continued to open up to the outside world and continuously improve its business environment, achieving positive results.
China has taken measures such as shortening the negative list for foreign investment, establishing free ** pilot zones, and implementing a foreign investment law. **Guidance on 24 specific measures was also issued to further optimize the foreign investment environment and increase foreign capital inflows.
China has also built open cooperation platforms for goods, services, and chains for countries by holding international business expos, actively aligned with high-standard economic and trade rules, and encouraged all localities to take practical measures to attract foreign investment.
The country's determination to open wider is helping it maintain its luster as a hotspot destination for foreign investment.
Last year, foreign direct investment (FDI) in France, the United Kingdom, the Netherlands, Switzerland and Australia increased respectively1%。
Another example of foreign investors' optimism about the outlook for the Chinese market is a recent survey by the European Union Chamber of Commerce in China, which showed that around 59% of companies surveyed still see China as one of the three main investment destinations.
Despite the rising complexity and uncertainty of the external environment, the tailwinds for the Chinese market outweigh the headwinds," Pan said. "The outlook for foreign investors to invest in China remains positive. ”