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    Foreign firms "fleeing China" prove a false picture

    今天江苏快三开奖 www.j6bp.com 2018-October-19       Source: Xinhuanet.com

    For those that constantly paint a picture of foreign firms pulling out of China, it is time to face an inconvenient truth. China was the largest recipient of foreign direct investment (FDI) in the first half of 2018, according to the UNCTAD.

    For those that constantly paint a picture of foreign firms pulling out of China, it is time to face an inconvenient truth.

    China was the largest recipient of foreign direct investment (FDI) in the first half of 2018, according to the the United Nations Conference on Trade and Development (UNCTAD).

    China attracted an estimated 70 billion U.S. dollars in inflows, a year-on-year increase of 6 percent, in sharp contrast to the global 41-percent FDI slump.

    Again, facts have scotched the ill-founded notion that China is losing appeal for foreign investors amid trade tensions and rising costs.

    Contrary to what is regularly peddled by the naysayers, China remains a top magnet for foreign companies. They are investing and reinvesting in the country, not retreating.

    In the first nine months, the number of new overseas-funded companies established in China surged 95.1 percent from a year earlier to 45,922, Ministry of Commerce data shows.

    During the period, FDI into the Chinese mainland grew 2.9 percent year-on-year in RMB terms and 6.4 percent in dollar terms.

    Foreign firms know where to go. Though it is fair to say the era of making a quick buck in China has gone, ongoing urbanization, a huge market and a transition to high-quality growth are breeding huge opportunities for competitive companies.

    More importantly, a better-than-ever business environment is in the making; China has substantially slashed red tape, lifted restrictions and strengthened property rights for foreign investors.

    Earlier this month, German auto giant the BMW Group announced it will increase its stake in its Chinese joint ventures BBA from 50 percent to 75 percent, after China unveiled plans to ease ownership rules for auto joint ventures.

    This is a telling example of China fulfilling its promise of opening wider, which foreign companies widely welcome.

    With more reforms and opening up measures to come, China will prove a wise investment destination for foreign firms, and a surprise for pessimists.

    Editor: Will

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