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The news that a series of foreign companies are closing Chinese companies due to the strength of global capital liquidity has attracted widespread attention this year. Not long ago, Nikon and Hewlett-Packard announced the closure of a number of legal entities in China, while Foxconn stepped up its investment in India. These incidents have been interpreted by the outside world as a disappointment of foreign companies with China's investment environment. In particular, Nikon's approach, as an important participant in the revitalization of the old industrial base in Northeast China, chose to go bankrupt and liquidate the Northeast subsidiary when it was about to die, which is very puzzling. However, when interpreting these events, we need to remain rational and think holistically.
First of all, looking at the individual cases, Nikon and Hewlett-Packard shut down their companies for different reasons. Nikon's northeastern subsidiary has been losing money for many years, and the losses under the epidemic have further expanded, so bankruptcy liquidation is reasonable; The closure of several sales companies by HP is mainly the result of business adjustments. Secondly, from the perspective of the overall environment, China is still a must for many multinational companies, with a huge market capacity and perfect industrial support, which is still very attractive. However, this does not mean that China can rest on its laurels. We need to further optimize the business environment, maintain policy continuity and stability, and improve the level of scientific and technological innovation, which is a question we must consider.
Foxconn's large-scale investment in India is eye-catching, and a global chain giant that mainly relies on Chinese manufacturing has suddenly increased its investment in China's rival India, which is inevitably reminiscent of whether it is in the Chinese market. It's hard to know why, but it's conceivable that large export companies like Foxconn are also experiencing tremendous pressure. On the one hand, the clouds of the Sino-US war have not dissipated; On the other hand, the disruption of the ** chain caused by the epidemic has caused the process of globalization to be reconsidered. This has increased the adjustment and rebalancing of the company's global layout.
Of course, we should not over-interpret individual cases, let alone criticize the normal business decisions of enterprises. The liquidity of global capital is so strong that it is not advisable to be completely locked into one country or region. We need to take a closer look at the reasons for the relocation, identify the shortcomings in China's business environment, and continue to push forward reforms. China must adhere to the basic national policy of opening up to the outside world, which is a political prerequisite for success. Over the past 40 years of reform and opening up, it is precisely the opening-up that has enabled China to achieve rapid progress. We need to continue to strive to create a market-oriented, rule-of-law and international business environment, so that enterprises can stand out from the competition on an equal footing. In terms of specific implementation, we can start from streamlining administration and delegating powers, tax exemptions and exemptions, intellectual property protection, etc., to systematically improve the policy environment. In addition, we also need to strengthen communication and coordination with enterprises, give full play to the role of the Federation of Industry and Commerce and other organizations as a bridge, and respond to the demands of enterprises in a timely manner.
Of course, while analyzing the problem, we must also look at the positive side of China's development. According to the latest report of the United Nations Conference on Trade and Development (UNCTAD), China will remain the world's largest destination for commodity investment and the second largest destination for investment in services by 2023. This shows that China's investment attractiveness has not diminished. Many well-known multinational companies are setting up R&D centers in China to lay out their core business. These are all optimistic about China's prospects by foreign investors. Therefore, we must maintain our strategic focus, focus on the medium and long term, continue to promote high-level opening-up, and create better development opportunities for foreign investment. China's door of opening up will not be closed, it will only get bigger.
We believe that as long as we coordinate epidemic prevention and control with economic development, strive to create a good business environment, and continue to promote high-level opening-up, China will surely become a paradise for foreign investment. We also welcome more outstanding global companies such as Nikon, Hewlett-Packard and Foxconn to invest in China and share the dividends brought by the Chinese market. Let's move forward with confidence and move towards success with an open pace!
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