Foreign investors optimistic about Chinese market
By Qiu Haifeng, People’s
Daily Overseas Edition
China’s efforts to
minimize the impact of the novel coronavirus epidemic on the economy have paid
off as the Chinese market still holds strong and continuous appeal to foreign
investment amid the epidemic.
Shanghai’s Pudong New
Area embraced a good start in attracting foreign investment this year.
It held a “contract
signing on the cloud” event on Feb. 25, attracting a total of $1.7 billion with
the signing of 21 projects.
The projects are funded
by global industry leaders. Of the companies, European construction machine
manufacturer Liebherr plans to build a regional headquarters in Pudong New Area.
Siemens Healthineers, a leading medical equipment manufacturer, plans to open
an innovation center for bioengineering research and development. U.S. oil
company Exxon Mobil, one of the world’s largest oil companies, plans to launch
a project in the automotive aftermarket segment.
The settling of the major
projects in Shanghai reflected that foreign investors have remained optimistic
about Chinese market.
In an effort to minimize
the impact of the epidemic on foreign investment, Chinese government
departments have formulated policies to address problems encountered by
foreign-funded enterprises in investment, production, and operation, supporting
these companies with targeted services and a combination of measures.
The Chinese market will
remain attractive to foreign investment, analysts suggested, adding that the
country is able to stabilize foreign investment as it is set to make progress
in curbing the epidemic and implement policy measures to stabilize foreign
investment.
At present, almost all
major foreign-funded enterprises in Shanghai, east China’s Shandong province,
and central China’s Hunan province have resumed work and production.
In Shanghai, the latest
official survey showed that over 99 percent of the city’s 840 major
foreign-funded companies had resumed work as of Feb. 25.
Shandong province is home
to 32 South Korean-funded manufacturers of wires and cables, which occupy an
important position in the global automobile supply chain. The province has
taken efforts to help the enterprises resume production.
It issued an urgent
notice, assigning specific persons to be responsible for delivering virus
prevention and control information, as well as favorable policy measures on
supporting enterprise development to the foreign-funded companies. The persons
are also responsible for coordinating the communication between the foreign
companies and relevant parties.
The factory of Yura
Corporation, a South Korean company specializing in designing, developing, and
manufacturing automotive electronics, has resumed production with the
assistance of the government of Heze, a prefecture-level city in Shandong. Now,
the factory is running at full capacity to produce wiring harnesses.
Affected by the epidemic,
the factory was not able to provide sufficient products for its clients, and it
received phone calls from them every day to inquire about the delivery of their
orders, according to the manager of the company. “Thanks to the help of the
local government who facilitated our efforts to resume work. Now we feel
confident to pick up calls from clients,” said the manager.
By Feb.15, the 32 South
Korean-funded auto parts manufacturing companies in Shandong had all resumed
production.
While paying close
attention to resumption of work in foreign-funded companies, China has also
made great efforts to ensure constant progress in attracting foreign investment
and projects.
Through online
negotiation, video conference, and conclusion of agreements via online
platforms, China has integrated various resources and managed to constantly
push forward with work in promoting and attracting investment.
Recently, Shandong
province held a contract signing event of 66 foreign investment projects
simultaneously in its 16 cities through a video conference, with an estimated
total investment reaching $14.39 billion.
Besides new projects, new
companies have also been attracted to China.
Last month, a
wholly-owned subsidiary of leading global asset management firm Oaktree Capital
Management, was registered in Beijing.
The company decided to
set up a subsidiary in Beijing because the city’s business and financial
environment appeals strongly to foreign institutions, and that the company is
optimistic about the long-term development of Chinese economy and the country’s
capital market, according to an executive of Oaktree Capital Management.
Investment in China
remains a popular choice of the majority of multinationals.
According to data from
China’s Ministry of Commerce, during this January, a total of 3,485
foreign-invested companies were established in China. Meanwhile, China’s actual
use of foreign capital reached 87.57 billion yuan (about $12.64 billion), up by
4 percent year on year, which basically maintained the steady growth momentum
since the previous year.
China will continue
expanding market access for foreign investors, increase the level of foreign
capital utilization in telecommunications, medical services, education,
culture, and finance, and further shorten the negative lists for foreign
investment market access in pilot free trade zones and across the country, said
Ren Hongbin, Assistant Minister of Commerce.
The country will
strengthen the protection of the legitimate rights and interests of foreign
investors, and improve foreign investment services, further improve the
business environment, and earnestly implement the foreign investment law and
the regulation on its implementation, according to Ren.
Employees of Qingdao Kwang Sung Plastic Co., Ltd., a South Korean-funded tarpaulin company in east China’s Shandong province are busy producing different types of tarpaulins to be exported to the U.S., Mar. 2. All employees of the company have returned to work. (Photo by Yu Fangping/People’s Daily Online
Foreign investors optimistic about Chinese market
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