Foreign firms' confidence boosted by high-level opening-up

For decades, the northeast Chinese city of Dalian has been the ideal location for Japanese companies to invest in China, thanks its geographical proximity with Japan and similarities in climate. However, some foreign governments have expressed concern about "economic coercion", claiming that foreign companies in China need to de-risk supply chains and operations. CGTN finds out what's making these companies remain and expand in China.

Headquartered in Tokyo, Alps Alpine Group is one of the world's leading manufacturers of electronic components and automotive infotainment systems. Its subsidiary first set foot in Dalian back in 2005, and has grown from a small office to an overseas headquarter with over 500 employees.

The general manager shared his thoughts about investing in China.

"Before we came to Dalian, we were apprehensive about the bureaucratic barriers that could potentially affect our business. However, we later found out that the local government was there to support us all the way through. We've recently won the project bid for the digitization of small & medium enterprises in the high-tech zone. Every bidder was treated and assessed equally," said Sone Koji, general manager of Alps System Integration (Dalian) Co.,Ltd.

According to the State Council, nearly 90 percent of foreign companies expect their profits to remain stable or increase in China over the next five years. Many of these firms consider localization to be a key growth opportunity in the Chinese market.

Canon, another Japanese giant, announced its localization plan last year – to accelerate the production of high-end medical equipment in China.

"Many of our Chinese employees have received incentives from the high-tech zone for their contributions and achievements. This helps expanding the local talent pool needed for business localization. In an industry like high-end medical equipment, having access to a highly skilled workforce is a must," Muneki Kataguchi, the president of Canon medical systems R&D (Dalian) Co.,Ltd, told CGTN during an exclusive interview. 

"The high-tech zone encourages foreign investments to play significant roles in local development and industrial upgrades. We believe that foreign investments can bring international market discipline, which in turn, enhances the competitiveness of domestic firms," Guan Qinghua, deputy director of Investment Promotion Bureau, Dalian High-Tech Industrial Zone, told CGTN.

The numbers don't lie, but they don't tell the whole story either. Despite a fluctuation in its foreign direct investment, China continues to step up efforts to create a top-notch business environment that is market-oriented, law-based and internationalized.