China is still a desirable place to invest

Editor's note: Kulsum Begum, a special commentator on current affairs for CGTN, is a security and strategic affairs researcher and freelance columnist. The article reflects the author's opinions and not necessarily the views of CGTN.

While China is experiencing foreign investment growth momentum in 2023, Western media outlets have continued to use the same old tricks to disparage China's attractive business climate for luring in foreign capital. Almost everyone believes that foreign direct investment has dropped in China, according to a Financial Times November story.

China's record outflow of foreign direct investment has reportedly alarmed investors about the state of the economy, leading some analysts to speculate that international companies have decided to "friend-shore" or "de-risk" their operations, according to a study by France-based "BNP Paribas Asset Management."

If you go for news updates on China's economy or foreign investments on the websites of Western media sources, I'm sure you'll discover unfavorable stories about the country's economic resiliency or foreign investments.

However, the unpleasant truth is that many of these stories are inaccurate. China's business climate has been consistently optimized since the start of 2023 when several measures were introduced to stabilize foreign investment. This has drawn a growing number of foreign-funded firms to invest in China. This foreign investment influx into China illustrates how rapidly expectations for the expansion of Chinese investment have surged.

Since the beginning of the year, China has been taking action to stabilize foreign investment. Its advantages are already starting to show. Furthermore, the country has become a center for foreign investment due to its friendly economic environment. According to China's Ministry of Commerce, 41,947 new foreign-invested enterprises were founded in the first 10 months of 2023, marking a notable growth of 32 percent in foreign direct investment (FDI). FDI into China has increased by 110.3 percent, 94.6 percent, 90 percent, 66.1 percent, and 33 percent from Canada, Britain, France, Switzerland, and the Netherlands, respectively. This rise is ascribed to the growing willingness of international corporations to invest in China.

To better assist foreign investors, the Ministry of Commerce is dedicated to advancing a business climate that is internationalized, law-based, and focused on the market.

Additionally, foreign capital received by the industrial sector amounted to 283.44 billion Chinese yuan, representing a 1.9 percent rise from the previous year. Yes, this is fantastic news, particularly in light of the misinformation being pushed by certain international media outlets about the stability and expansion of Chinese investment. Their misinformation is ineffective as daily investments of foreign firms rise.

Amid the global slowdown in economic development, the rise in foreign investment in China is encouraging. Many multinational corporations have increased their research and development expenditures, especially in the service industry. This is feasible as China has established an atmosphere that is conducive to industrial facilities. China has been able to establish collaborations with international companies, and research facilities. Beijing has allayed foreign investors' concerns with the issuance of a strategy document that has 24 points.

With a per capita GDP of over $12,000 and a middle-income group of over 400 million, China has a huge potential domestic market. China is also the only nation having all UN-listed industrial categories.

To increase foreign investments, the annual Central Economic Work Conference was convened in Beijing last week to discuss the main economic work items for the next year. Better private sector and foreign company assistance was demanded during the meeting.

Enhancing the business environment of the nation, hosting trade shows like the China International Import Expo, maintaining high-level opening-up and macroeconomic stability, enhancing the quality capabilities of free trade zones, improving the overall performance of foreign trade and foreign investment, preventing and mitigating risks, and lowering the negative list for foreign investment make China a great place for international companies to operate.

The nation intends to encourage institutional openness, remove barriers to international investment, and ease trade with other nations. To foster investment, the nation's lawmakers have prioritized enacting sensible investment reforms and updating trade and investment laws and regulations. China's increasing openness to international businesses and investors is much welcomed.

The aforementioned discussions demonstrate that China has a promising future for foreign investment, which is made feasible by the country's stable and dynamic economy. One of the world's most competitive markets is China. It is evident that there is still a great deal of room for China to increase its commerce with other nations, and this opportunity must be fully taken advantage of.

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