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China,the FDI Magnet

2021-07-19ByLanXinzhen

Beijing Review 2021年28期

By Lan Xinzhen

Restrictive measures in response to the COVID-19 pandemic have triggered concerns among financiers with investment environments across various economies. Which country is most attractive to foreign investment? The answer is China, according to the World Investment Report 2021 released by the United Nations Conference on Trade and Development on June 21.

According to this report, in 2020, foreign direct investments (FDI) around the world plunged by 35 percent over 2019. Asia was the only region where gross FDI saw a positive growth, with that for China increasing by 6 percent.

This growth rate of 6 percent was secured against the backdrop of great changes unseen in the past century plus a once-in-a-century pandemic sweeping the globe. Its a proof of foreign investors confidence in Chinas business environment and its overall economy, which they believe will bring them satisfying return of investment.

Statistics of the first five months of 2021 further confirm the international capitals confidence in the Chinese market. According to Chinas Ministry of Commerce, these first five months witnessed more than 18,000 new foreign-invested enterprises established in China, up 48.6 percent over the previous year, and 12.4 percent over the same period of 2019. The Business Confidence Survey 2021 released by the EU Chamber of Commerce in China shows that 73 percent of surveyed businesses made profits in 2020, while COVID-19 was ravaging the rest of the world, and 60 percent of them plan to expand their business in China.

The year 2021 marks the 20th anniversary of Chinas accession to the World Trade Organization. Always trying to align itself with standard international practices, in the past two decades, China has continuously enhanced its own business environment to make it fairer, more transparent and more convenient by pushing forward various reforms. Chinas reform and opening-up policies of the recent two decades aim to create a better environment for investment, lowering the access threshold, enhancing services to investors, and promoting fair competition across the Chinese market.

China offers national treatment to foreign investors, supplemented by the negative list and security review of foreign investment systems. International investors can get to know Chinas investment policies on official websites of via the relevant authorities. As for those who have already invested in China, they will receive help in terms of production, operations and other sections of their business from these authorities, should any difficulties occur along the way.