China Wants To Be More Appealing To Foreign Investors

August 7, 2017 Investments

In an effort to build a more open economy, the Chinese government has made commitments to create “a stable, fair, transparent and predictable business environment.” It is hoped that doing so will promote the sustainable and healthy development of the Chinese economy, and make the country more appealing to foreign investors. This means opening up more of the country’s sectors and relaxing restrictions for foreign businesses.

The inflow of foreign capital has been pivotal for China to maintain a relatively quick growth rate. Our industries are in general at the lower end of the global value chain. We must send a strong message of welcome to foreign investment. – Premier Li Keqiang

Although in the first half of this year inbound foreign direct investment (FDI) fell by a mere 0.1 percent year on year to 441 billion yuan (USD 66 billion), the number of new foreign enterprises in China was up by 12.3 percent [Chinese Ministry of Commerce]. A survey from the American Chamber of Commerce [Shanghai] reported that 73.5 percent of U.S. companies in China reported revenue growth in 2016; this figure is up 12 percent from 2015.

Just as a more open China means investment opportunities for investors across the globe, Chinese officials are expecting inbound investment to play a larger role in the country’s economic development. Compared with the initial stage of China’s reform when the country opened-up nearly 40 years ago, China is more consciously choosing the types of “investment” and “professionals” it wants to attract.

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