TradePromotion

Foreign Investors Exploring Opportunities in China

2019-9-16 14:01:10

China International Fair for Investment and Trade 2019 & Belt and Road Investment Congress are being held in Xiamen. Amidst rising trade protectionism and deglobalization, guests and businesses from all over the world are here to identify their opportunities in China.

The World Investment Report 2019 by UNCTAD shows that in 2018, global flows of foreign direct investment fell by 13%, to $1.3 trillion, which underlines the weak growth of international investment. In contrast, investment in China grew steadily. The Report shows that in 2018, foreign investment in China reached $139 billion, accounting for over 10% of the global total, making the economy the second largest recipient of foreign capital.

Political leaders and MNC executives at the event believed that China remained the major destination of foreign investment. “We will benefit from our continued investment in China,” said Harley Seyedin, President of the American Chamber of Commerce in South China, whose delegation had come to Xiamen for the 17^th time. This year, the Chamber brought over 100 businesses, including major MNCs such as Apple, Deloitte, Johnson & Johnson, Nike, and KPMG.

According to the Chamber’s 2019 Special Report on the State of Business in South China, in 2018, almost all foreign-owned businesses in China were profitable. Respondents’ reinvestment shows that companies are not fleeing the Chinese market. Their interests in China remain strong, mainly because of the economy’s growth potential and high rate of return.

Investors’ focuses at the event included AI, culture, education, medicine, and health.

According to Cai Hua, Government Affairs Director of the China office of the OSI Group—a meat processor giant, China is now proactively launching new policies to push industrial transition and attract foreign capital. This gives great reassurance to the MNCs in the country.

“We are firmly confident in the Chinese market,” said Chen Silin, Vice President of ABB China. AI’s future looks promising across the globe, and China will continue to play a major role in this area.

ABB’s Xiamen Hub—an investment of ¥ 2 billion—began its operation at the end of last year. The Hub is now one of ABB’s largest innovation and manufacturing bases in the world. Chen said: “ABB has cooperated with over 400 Chinese businesses in over 70 countries and regions in recent years, and the Group will actively explore what the Belt and Road initiative has to offer.”