Asia remains a dynamic, attractive destination for global capital

Asia continues to attract significant global investment, harboring great potential for economic growth and the development of new industries, according to a sub-forum on Tuesday.

With the theme of Investing the Future of Asia, a special session was held on the first day of the Boao Forum for Asia (BFA) Annual Conference 2024, which will be held from March 26 to 29 in Boao, south China's Hainan Province.

Noting the important role of foreign direct investment (FDI) in Asia's development, Shamshad Akhtar, a former under-secretary-general of United Nations and a member of the BFA Council of Advisors, said the most attractive regions or countries for FDI are places that promote fair market competition and respect sustainable development and the rule of law.

She said China's Belt and Road Initiative, as an effective complement to traditional FDI, plays a key role in the Asia-Pacific region, helping the less developed or least developed countries gain equitable opportunities and reduce their disadvantage in terms of trade and geopolitical influence.

Speaking at the forum, Charles Dallara, chairman and advisory partner at Partners Group USA, said Asia remains a dynamic and attractive destination for investment, especially FDI.

He added that investors around the world are more diversified in their investments for various reasons, but factors such as the degree of opening up, protection of intellectual property rights and regulatory stability are key considerations for investors.

Tokiko Shimizu, executive director of the Bank of Japan (BOJ), said with ample foreign exchange reserves and well-developed financial markets, Asian countries are better able than in the past to weather economic or financial storms on a global scale.

Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, told CGTN that one of Asia's advantages in attracting foreign investment lies in the close cooperation and strong supply chain between countries in the region.

"We can solve complex problems which requires collaboration in a short time," said Zhou."The size of the population in this region and the room for market growth are large, which is quite attractive for foreign investment."

Zhou noted that the focus of foreign investment varies for each country according to their development needs.

"Technology of China's manufacturing industry is valued by foreign investment," Zhou added. "Foreign investor's confidence in China comes from the country's stable business environment, large market size, the industrial and technological conditions, and the country's encouragement and support for innovation."

In August 2023, China issued guidelines to attract foreign investment by further optimizing the investment environment. Under these guidelines, 24 points across six aspects were put forward, such as improving the quality of foreign capital utilization and strengthening foreign investment protection.

Speaking during a press conference in January, Chinese Commerce Minister Wang Wentao said over 60 percent of the measures listed in the guidelines have been put into force and that the feedback from more than 90 percent of the foreign-funded enterprises has been positive.