Investing in China means both protection and opportunity

BEIJING, March 8, 2022 /PRNewswire/ -- A news report by China.org.cn on China's economy:

On the basis of 8.1% GDP growth last year, the Chinese government set a target of around 5.5% for 2022 and unveiled a raft of measures to attract foreign investment at this year's "two sessions."

After going through the impacts of trade friction with the U.S., compounded by the influence of the COVID-19 pandemic and rising international commodity prices, China has weathered the most challenging and complex period in its economic development. Going forward, China will remain a top destination for foreign investment and a strong force driving steady global economic recovery.

Data speak volumes. In 2021, despite the grave global COVID-19 situation and sluggish investment, foreign direct investment (FDI) into the Chinese mainland, in actual use, exceeded 1 trillion yuan for the first time; newly established foreign-funded enterprises numbered near 48 thousand; and investment from developed countries such as Singapore and Germany registered double-digit expansion. It is worth mentioning that in contrast with FDI in the U.S., which is mostly in the form of mergers and acquisitions, FDI in China is mainly greenfield investment, which involves building new factories. These show that amid global economic headwinds, China has become a haven for foreign investment.

In fact, China can not only protect foreign investors from headwinds but also provide them with plenty of opportunities.

At present, the Chinese government has controlled the spread of the virus in China, laying a foundation for leading progress on various fronts. The GDP growth target of around 5.5% outlined in the government work report means that after the pandemic, China will continue to aim for high-quality, balanced and sustainable development.

As part of its "dual circulation" development paradigm, China's domestic circulation has run smoothly and is now speeding up. In the past, foreign-funded enterprises in China mainly sold their products to other countries. In 2006, these enterprises exported goods worth $563.8 billion, seven times their sales in China. Today, their domestic sales have far exceeded exports, reaching $1.45 trillion. The government work report introduced policies to expand domestic demand and promote the sustained recovery of consumption. These will surely enable foreign-funded enterprises to better enjoy the dividends in China's vast market.

In recent years, foreign investment in China's manufacturing industry has declined, while more funds have been going to the service sector. Particularly, investment has soared in new types of services, such as social security, healthcare and elderly care. This shows that foreign investors have seen the opportunities brought about by China's industrial transformation and upgrading. Such changes in investment are closely tied to China's continuous relaxation of market access and increased opening up of its service sector and other fields. This year's government work report focuses on multiple aspects including the fully implementation of negative list, improving services for promoting foreign investment and launching more trials on the extensive opening of the service sector. Hopefully, more beneficial policies will be issued in the future.

As the world's second largest economy, China's economy has direct global influence. Following the general principle of pursuing progress while ensuring stability, while opening wider to the world, China will make greater contributions to the recovery and stability of the global economy.

China Mosaic
http://chinamosaic.china.com.cn/index.htm

Investing in China means both protection and opportunity
http://www.china.org.cn/video/2022-03/08/content_78094641.htm

SOURCE China.org.cn