Wei Jianguo: At present, it is the best time to attract foreign investment in China

The central and western regions will usher in a new round of investment boom

In the first half of 2022, the Chinese capital market performed well in the storm of most markets and economies around the world and economy. According to PwC statistics, the A -share market IPO has exceeded the number and financing amounts in other major capital markets in the world. Although the Hong Kong market has slowed down in the first half of this year, the long -term prospects are still better. Boston Consulting even predicts that by 2026, with Hong Kong's position as a global wealth management center, Hong Kong will replace Switzerland as the world's largest cross -border asset center.

Investing in China, optimistic about the unified market, in fact, it has been strongly manifested as early as the beginning of this year. According to statistics from the Ministry of Commerce, from January to May of this year, China's actual use of foreign capital increased by 17.3%year -on -year (RMB priced); large projects with more than US $ 100 million in contracts increased by 40.3%year -on -year to 47.68 billion US dollars. 54.3%of the actual use of foreign capital in the same period. A large number of multinational giants including Tesla, BMW, and Volkswagen are stepping up its layout in China.

Foreign capital is optimistic about the central and western regions of China. They believe that the central and western regions in the world are global production factors, including land, capital, technology, talents, and information. They still have the same growth space as the coastal areas, and human capital will be better than China's coastal regions. The central and western regions will be an important driving force for the development of China, and the western region will also be carried out with the "Belt and Road" to become a key section for eastward leading, land and sea intersection, and Eurasian intersection. In fact, in the first five months of this year, Chongqing and Chengdu attracted foreign capital to increase significantly year -on -year.

Multinational companies' investment in China reflects global capital to optimistic about the Chinese market, and investors have good expectations for the development of the Chinese economy. Recently, the Chinese American Chamber of Commerce, the China -Europe Chamber of Commerce, and the Japan -Europe Chamber of Commerce Investment Revitalization Agency (Jetro) and other chambers of commerce and associations all believe that China is a hot land investing in the future after the epidemic.

The development of Russia and Ukraine's conflict, especially the global industrial chain, disconnect chain and "decourse" of supply chain, has accelerated the speed of global capital to Asia and China. Chinese technology stocks have been increased by a large number of US investors. According to statistics, in May to June of this year, global capital has injected $ 15 billion into the Chinese A -share market, which means that the average monthly is injected with $ 7.5 billion. This The injection and injection speed of the species are not available in the past.

And direct investment (green land investment) is even more exclusive. According to statistics from the Ministry of Commerce, from January to May this year, China attracted foreign direct investment average of US $ 17.5 billion per month, with an average monthly growth rate of 20%. It can be seen that foreign investment in the Chinese market.

What is the situation of China attracted foreign capital in the second half of this year and even the next five years? I think that it is the best time to attract foreign investment in China, especially in the central and western regions, a new round of investment boom will be ushered in. The main reason is the following four points:

First, the world's energy prices have risen since the Russian -Ukraine conflict. Because of the lack of energy or component supply in European companies, many factories have stopped production or closing, such as some European automobile manufacturing companies, chemical companies, steel companies, medical device companies, precision precision, precision Instrument enterprises, etc. It is understood that many factories have shifted their goals to invest in China in order to get out of the corporate crisis. We must seize this opportunity.

Second, China's unified market highlights its charm of attracting foreign capital. So far, the global epidemic is still raging, and American inflation data may exceed 10%in the next few months. The entire market has fluctuated, and its economic recession has existed, and the global manufacturing industry has shown acceleration in the second half of the year. Multi -way capital competes into the Chinese market. His hesitant turned to cutting iron and ironing, and many projects also repeatedly increased capital and expand capacity. This is a great opportunity for China, especially the Midwest. A new round of market competition has been developed.

Third, in order to curb inflation, the Federal Reserve raised interest rate hikes in June 75 basis points, causing the great rise and fall of commodities around the world, making the Chinese economy show strong advantages and toughness. Not only is the domestic market price relatively stable and sufficient supply, but the dual -cycle economic pattern also brings more domestic and foreign market orders to enterprises. According to statistics from the General Administration of Customs, China's import and exports increased by 10.3%year -on -year in the first half of this year, which was expected. The growth of foreign trade is strong because China's early resistance to immunity, the first to resume labor and re -market in the world, enable the industrial chain and supply chain to be able to turn, and the effects and power of various foreign trade policies. Similarly, it is believed that the government's effect of promoting consumption and investment policies will gradually appear. In my opinion, China's GDP growth in the third quarter of this year will soon return to about 6%.

Fourth, China will continue to increase its high level of opening up. This year, the 20th National Congress of the Communist Party of China will be held. China will introduce more favorable policies, especially to strengthen intellectual property protection, create the best business environment in the world, and realize marketization, legalization, and internationalization as soon as possible In terms of market system, there will be more policies and measures to open to the outside world. With the improvement of the Chinese epidemic, these measures will have a stronger effect of attracting foreign capital. This opportunity is rare to private enterprises and is even more rare to the central and western regions. In summary, China will usher in a new round of foreign investment boom, and China will be regarded as the best choice for investment. A new round of investment boom will definitely accelerate the formation of China's dual -loop pattern and promote the accelerated construction of China's unified market.

(The author is the former deputy minister of the Ministry of Commerce)

Author: Wei Jianguo

Capture: Wang Lin

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