Investing in China is investment in the future (internationalism)

Source: People's Daily Overseas Edition

On July 30, the 6 -day 2nd China International Consumer Products Expo closed at Haikou, Hainan. This year's Consumers Expo exhibited a total of more than 2,800 domestic and foreign brands, and hundreds of activities such as theme forums, procurement docking meetings were held. The total number of audiences has exceeded 280,000, and the number of various buyers and professional audiences exceeds 40,000 All, all hit new highs. The picture shows the last day of the Expo, the French Pavilion continues. Photo by Yuan Chen (People's Picture)

For some time, some Western media have been keen to rendering "foreign companies are evacuating China." However, the facts are better than arguments. Regardless of whether the actual amount of foreign investment in China in the first half of 2022, or the current operation of enterprises in China and the subsequent plans in China, it clearly shows the huge attraction of China's foreign companies.

The hot soil of foreign investment in the industry

At the end of July, the data released by the Ministry of Commerce of China showed that from January to June 2022, the actual amount of foreign capital used in the country was 72.31 billion yuan, an increase of 17.4%year -on -year by comparable caliber, equivalent to 112.35 billion US dollars, an increase of 21.8%. This has aroused widespread attention from international public opinion.

The US "Wall Street Journal" website reported that in recent years, China has been investing in hot soil worldwide. Global cross -border investment in 2020 decreased sharply by 42%to $ 859 billion, a low of 15 years. However, China attracted foreign investment but rose against the trend, reaching 163 billion US dollars, and for the first time, it surpassed the United States to become the world's largest foreign capital flow. In 2021, China attracted 20%of the total foreign investment from 2020 to a record of $ 179 billion. The report pointed out that China took the lead in controlling the new crown pneumonia's epidemic and continuous recovery of the economy, and the government's launch of stable foreign measures to attract foreign companies to continue to invest in China.

The latest statements of chambers of commerce and enterprises in various countries are also in line with this trend. Reports from the German Chamber of Commerce and the American Chamber of Commerce in China show that more than 70 % of German -funded enterprises and 60 % of US -funded companies plan to increase investment in China. The latest announcement of the questionnaire survey of EU companies in China also shows that most of the Chinese European companies benefited from the local innovation research and development and still regard China as an innovative research and development base with potential. The 13th edition of the 13th edition of the Chinese Economy and Japanese Enterprises 2022 Book of 2022, released by the Chinese Japanese Chamber of Commerce, shows that compared to 2020 due to the performance of the new crown pneumonia's epidemic, the performance of Chinese -funded enterprises in 2021 has recovered significantly, not only exceeding exceeding the exception, but not only exceeding the exception of exceeding, not only exceeding the exception, but not only exceeding the exception, but not only exceeding the excess of exceeding The level before the outbreak also reached the highest level of history. The White Paper quoted the latest edition of the latest version of the "Asian and Oceania Japanese Enterprises Live Survey" released by the Japanese Trade Promotion Agency, stating that among Chinese -funded enterprises in China, the issue of operating profits (predictions) of 2021, 72.2 companies answered "profit" 72.2 %, An increase of 8.7 percentage points from the results of the investigation in 2020. This number has the highest value since the data in 2007. At the same time, companies that answered "losses" accounted for 12.7%, a decrease of 6.8 percentage points from 2020, the lowest value since 2007. The White Paper also states that about 50 % of Japanese -funded companies will be used as "most" or "about half" of the cumulative income in China for investment principal to enhance their capabilities in China. This shows that many Japanese -funded companies will invest in China for further development in China.

It turns out that China is still a hot land for foreign investment. At the end of July, the "Report on the Second quarter of 2022 China Foreign Business Environment Investigation Report" released by the China Trade Promotion Council showed that in the second quarter, foreign companies that maintained and expanded in China accounted for 91%of foreign companies. Specifically, 18.5 % of foreign -funded enterprises have expressed their expansion of business scale, an increase of 2.1 percentage points from the first quarter; 72.5 % of foreign companies have expressed their maintenance of business scale, an increase of 1.5 percentage points over the first quarter. Foreign -funded enterprises are generally optimistic about the long -term development prospects of China, and 11.2 % of foreign companies have said that they have increased investment in China in the second quarter.

Okay, no chance to miss

The "multinational company in China" released by the International Institute of Commerce and Economic Cooperation in June reported that China's huge market demand has become a key force that attracts the investment layout of multinational companies. China's market and various preferential policies have attracted many multinational companies to invest in China, making China one of the concentrations of global production networks and supply chains. At the same time, China's oversized market and consumption potential is also an important engine that stimulates the vitality of global supply chain.

Foreign companies who know the international market are unwilling to miss the Chinese market, because investing in China is investment in the future. On July 30, the 2nd China International Consumer Products Expo perfectly ended in Haikou, and the effect was far exceeding expectations. The Philippine "Manila Times" commented that at the current Expo, the attractiveness of the Chinese market to international enterprises has once again demonstrated. Tas Society also pointed out in the second Expo that multinational companies, world -renowned companies, and young brands have expressed confidence in the driving force of the Chinese market and Hainan's business environment. In the context of the slowdown in the growth of world economic growth, the huge Chinese market has played the role of the "life circle", "selling the locomotive" or "new business model test field" for many companies.

As McKinsey recently released a report called "The Risk, Elasticity and Balance of the Global Value Chain", "more production is close to the main consumer market, and China's growing middle -income group will continue to attract global transnational multinational countries The company's in -depth layout in China. "

China is also providing a more suitable development environment for foreign companies. The "Report on China's Foreign Business Environment in the Second quarter of 2022" shows that foreign companies are optimistic about China's development prospects and market space, and have a good evaluation of China's business environment and macroeconomic policies. Specifically, nearly 90 % of foreign -funded enterprises are "more satisfactory" to obtain operating venues, tax and market access evaluations; nearly 90 % of foreign -funded enterprises have positive fiscal policies and tax reduction policies, anti -epidemic helping enterprises to relieve the rescue policies, and the rescue policies, and the rescue policies, and the rescue policy, and the rescue policy, Major foreign -funded projects have a high policy satisfaction. Many foreign media believe that China ’s opportunities are so good that it should not be missed. The British "Financial Times" recently said that compared with many developed countries and emerging market countries, the Chinese market has unique value to global investors. For example, although the dollar has strengthened, the renminbi has remained stable. In addition, China's energy transformation and technological progress provides investment opportunities for green infrastructure. With the advancement of common prosperity, the continuous growth of middle -income groups will also drive the development of consumer enterprises.

"Stabilizer" of multinational investment

Analysis generally pointed out that China has accumulated more and more mature experience in responding to the emergencies and maintaining the stability of the industrial chain supply chain. With the increasing number of positive factors attracting foreign investment in the second half of the year, China will continue to become a "stabilizer" for global multinational investment.

As developed economies face inflation and risk of recession, China has injected confidence into foreign companies through storms. According to the "Australian Financial Review" website recently reported, Jacob Steushelm, CEO of Rio Tinto Mining Group, said that the contribution of Chinese customers may make the performance of large mining companies better than other industries. It is reported that in the past six months, about 52%of Rio Tinto mining revenue came from China. In this case, Steushelm said that he believed that Rio Tori could spend the current economic turmoil in peace.

In the final analysis, China's attraction to foreign companies comes from foreign investment in foreign investment in China's economic prospects. According to Bloomberg News website, Feng Sihan, who has been leading Volkswagen's business in China since 2019, said that to continue to become one of the world's major car manufacturers, it is necessary to continue to focus on China. Feng Sihan said that the public "predicts quite affirmatively" that by 2030, Chinese car sales will increase to 28 million to 30 million, accounting for about 30%to 35%of the global automotive market. China is an important market for Volkswagen. In the first quarter of this year, it accounted for about 40%of its global shipments.

Bloomberg News reported that with the recovery and confidence of business activities, the momentum of China's economic recovery became stronger in July. Mark, chief investment officer of UBS Global Wealth Management, told Reuters that China is still one of his preferred markets in Asia. Investment Bank Goldman Sachs Group said that although it was affected by the new crown pneumonia's epidemic, this failed to fundamentally change the decision of foreign investors investing in China.

Entering the second half in 2022, a number of foreign companies stated that China's stable economic policies and measures have made positive progress. Foreign companies in China are optimistic about the development of the Chinese market, and they are actively deploying R & D investment, expanding recruitment, and supporting local supply chain. Chinese market. In addition, foreign -funded enterprises are generally looking forward to the Fifth Expo. At present, the signing area of ​​this Expo has accounted for about 85%of the planned area. Among the participating companies, there are more than 270 Fortune 500 and industry leaders, with a return rate of nearly 90%. (Reporter Zhang Hong)

"People's Daily Overseas Edition" (10th edition, August 08, 2022)

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