China's Enhanced Business Environment and Opening-Up Initiatives Boost Foreign Investor Confidence in the Economy

11 Sep, 2023

China's Enhanced Business Environment and Opening-Up Initiatives Boost Foreign Investor Confidence in the Economy

China's unwavering commitment to high-standard opening-up and the continuous improvement of its business environment has instilled confidence in foreign investors attending the 23rd China International Fair for Investment and Trade (CIFIT) in Xiamen, Fujian Province. This event has attracted participation from companies representing 102 countries and regions.

Wang Yong, vice chairman of the 14th National Committee of the Chinese People's Political Consultative Conference, emphasized China's dedication to its fundamental policy of opening to the world and the pursuit of mutually beneficial international cooperation. He reiterated China's commitment to high-standard opening-up, the enhancement of the foreign investment climate, and the firm protection of multilateral trade.

One of the attending companies, ABB, a global leader in electrification and automation, has invested approximately 19 billion yuan (around 2.63 billion U.S. dollars) in China over the past 31 years. Their presence has expanded to encompass research, manufacturing, sales, and engineering services in 700 Chinese cities. James Zhao, senior vice president of ABB (China) Ltd., noted the continuous improvement of China's business environment over the years. He highlighted the significance of the Foreign Investment Law, enacted three years ago, in providing legal frameworks and protection for foreign investments. Zhao also expressed optimism regarding recent policy changes in China, expecting them to create a fairer business environment.

According to a report by the Development Research Center of the State Council during CIFIT, China has retained its position as the world's second-largest recipient of foreign investment since 2017, remaining an attractive global investment destination. In 2022, China's actual use of foreign direct investment (FDI) increased by 8 percent year-on-year on a comparable basis, reaching 189.1 billion U.S. dollars. China's share of global FDI rose from 8.2 percent in 2012 to 14.6 percent in 2022. The report attributed China's success to its alignment with international standards, continuous optimization of investment policies, expansion of market access, and improvement of the business environment.

Saudi Arabia's Deputy Minister of Investment, Saleh Ali Khabti, praised China's investment environment, citing increased Saudi investments in China, including those by Saudi Aramco. At a CIFIT forum, Chen Chunjiang, assistant minister of commerce, pledged to enhance opening up further, including shortening the negative list for foreign investment access, relaxing restrictions, and increasing openness in the modern service industry. China will also provide more policy support and strengthen protections for foreign investors.

Lu Haiqing, chief corporate affairs and strategic relations officer of IHG Greater China, expressed enthusiasm about China's growth prospects. IHG, one of the first multinational hotel groups in China, operates hundreds of hotels nationwide. Lu highlighted their commitment to expanding in China, particularly in the post-epidemic era, and their positive interactions with provincial and city-level government officials. He hinted at forthcoming developments and opportunities, particularly in second and third-tier cities.

In conclusion, China's commitment to opening up and improving the business environment has gained the confidence of foreign investors, as evidenced by their participation in CIFIT and positive developments in various sectors.