China’s economy is attracting even more interest from international investors as the nation intensifies its efforts to bolster economic growth and deepen reforms while expanding its opening-up policies. Market observers and business executives predict that the country will become a preferred destination for high-quality and long-term foreign investment.
In light of this positive trend, various central government departments have announced new measures to attract global capital. The National Development and Reform Commission plans to implement comprehensive policies and establish a higher-level opening-up system, aiming to draw in more foreign investment. Similarly, the Ministry of Commerce is revising administrative measures to encourage overseas companies to invest in China’s stock market through strategic investments in listed companies.
President Xi Jinping emphasized the strategic significance of building a higher-standard open economy and actively pursuing reform and development through opening-up during a meeting of the Central Commission for Comprehensively Deepening Reform. He stressed the importance of institutional opening-up and reform in key areas like investment, trade, finance, and innovation to elevate China’s opening-up to a new level.
China’s massive market, well-developed industrial system, and strong supply chain competitiveness make it an attractive proposition for companies like 3M and Siemens AG, both of which plan to continue investing in China’s manufacturing and innovation capabilities. European companies also view the Chinese market as a crucial part of their strategic layout, exploring collaboration opportunities, particularly in the green economy and high-end manufacturing sectors.
Recent data indicates positive growth in foreign direct investment in China’s high-tech industry and high-tech manufacturing, showcasing the country’s potential and appeal to foreign investors. Additionally, the establishment of new foreign-invested enterprises has surged, underscoring growing confidence in China’s market.
To address concerns raised by foreign companies and further boost foreign investors’ confidence, the Chinese government plans to introduce new measures in the second half of the year. A recent survey showed that nearly 70 percent of surveyed foreign-funded companies are optimistic about the Chinese market for the next five years, citing reasons such as the large market size, preferential policies, and complete industrial and supply chains.
China aims to leverage its economic scale to enhance productivity and resource utilization, offering foreign investors comparative advantages and reinforcing its position as the largest trading nation. Manufacturers in China are witnessing a demand for innovative products and solutions, leading companies like TE Connectivity Ltd to establish new plants to cater to the automotive sector’s transformation.
Notably, China’s mainland has provided a higher return on foreign direct investment (FDI) compared to Europe and the United States over the past five years, making it an attractive choice for investors seeking promising returns.