Creating a More Attractive Chinese Market and Strengthening Policies for Stabilizing Foreign Investment

2023-08-17

Actively attracting and utilizing foreign investment is an important part of promoting high-level opening-up and building a new open economy system. Faced with the complex and severe external environment, China's economic operation is facing new difficulties and challenges. In the first half of this year, China established 24000 new foreign-invested enterprises, an increase of 35.7%; The actual use of foreign investment was 703.65 billion yuan, a decrease of 2.7%. Affected by multiple factors, the world economy is experiencing sluggish growth, and the situation faced by China in attracting investment is complex and severe. The State Council recently issued the "Opinions on Further Optimizing the Foreign Investment Environment and Increasing the Attraction of Foreign Investment", requiring all regions, departments, and relevant units to effectively optimize the foreign investment environment and increase the attraction of foreign investment. Encourage various regions to introduce supporting measures tailored to local conditions and enhance policy synergy. Against the backdrop of sluggish global economic recovery and sluggish global cross-border investment, how should China enhance foreign confidence and stabilize foreign investment? Since the beginning of this year, many executives from large multinational corporations with global influence, such as Apple, Ford, General Motors, AstraZeneca, BHP Billiton, and Siemens, have placed "visiting China" on their agenda. They have thoroughly examined the business environment in China and sought new opportunities for investment cooperation. Multinational corporations generally express optimism about China's development prospects, believing that the Chinese market contains huge development opportunities and will continue to increase investment in China to deeply cultivate the Chinese market. Starbucks Global CEO Nasihan stated that the growth potential of the Chinese coffee market is enormous. The speed and consumption behavior of mature and differentiated Chinese customers accepting new things are leading the global trend. Starbucks China has set a goal of opening 9000 stores by 2025 and will continue to invest in China, making it the world's largest market for Starbucks in the future, "said Nashan. Tesla CEO Musk's visit to China is seen by industry insiders as a full affirmation of the accelerated recovery of the Chinese economy and the high-level opening up pattern to the outside world. It is also a vote of trust that Tesla has invested in the Chinese market, as it values its development in China. Pan Mulin, the global CEO of Amway Group, has lived and worked in China for many years. He recently stated that the company will invest 600 million yuan in a 5-year upgrade and renovation of its production base in Guangzhou. This is Amway's 10th capital increase in the Chinese market. Pan Mulin said, "This will effectively promote the high-quality development of Amway's production and supply chain system to meet Amway's global product supply demand for the next 30 years." China is the world's second largest economy and an important consumer center, manufacturing center, and innovation center. The close cooperation between multinational corporations and the Chinese market largely determines their development speed and quality. Zhao Yonghui, Vice Chairman of the China Enterprise Management Research Association, analyzed that product cost advantages and market scale advantages are the most important aspects of foreign investment, which directly determine the profitability and global competitiveness of foreign investment. The 2023 World Investment Report recently released by the United Nations Conference on Trade and Development, highlighting comprehensive advantages, shows that global foreign direct investment continues to face downward pressure this year due to multiple factors. In this context, combined with the factors of high base in the same period of 2022, China's actual situation in the first half of this year

Edit:Hou Wenzhe    Responsible editor:WeiZe

Source:economic daily

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