At China’s 2024 “Two Sessions,” the nation established a GDP goal of “about 5 percent,” emphasized “new quality productive forces,” and pursued higher-standard opening up, sending optimistic signals.
Apple CEO Tim Cook “remains upbeat about China over the long run.”
Statistics support Cook’s view: China added 4,588 foreign-invested enterprises in January 2024, increasing 74.4% year-over-year. Foreign investment in use rose 20.4% monthly. Such numbers showed that China remains an appealing location for international investment despite global economic uncertainty.
The volume and structure of foreign investment in China have been optimized.
More projects with industry-leading technology and innovation are appearing as foreign investment in high-tech industries rises. In recent years, BASF, ExxonMobil, and Siemens have opened sci-tech research and development facilities in Guangdong province, China. Many foreign-invested enterprises in Jiangsu province have spent their unrepatriated revenues in high-tech sectors including photovoltaics, special purpose ships, automotive manufacture, and electronic components manufacturing.
China’s consistent and successful policies have attracted a lot of international investment with a better framework. In August 2023, China announced a 24-point guideline with 59 steps to boost foreign investment. Over 60% of the initiatives have been implemented or are on their way six months after commencement.
Jens Eskelund, president of the European Union Chamber of Commerce in China, believed the “24-point guideline” had provided tax incentives to EU-invested companies, solved visa issues for EU personnel visiting China, facilitated cross-border data flow, and created an equal playing field for government procurement. AmCham China (American Chamber of Commerce in China) recently released the “China Business Climate Survey Report,” in which many American companies acknowledged China’s economic performance and improved business environment, bolstering multinational companies’ confidence in investing in China now and in the future. Many foreign-invested projects finalized agreements or began development in 2024, demonstrating international corporations’ commitment to China.
This year’s government report stated that “we will intensify efforts to attract foreign investment” by lifting market access restrictions and improving services for foreign investors to make China a preferred investment destination. New rules to stabilize foreign investment will boost China’s ambitions to attract international investment.
China is experiencing economic issues include a slowdown in GDP growth and shifts in foreign investment. Many causes have caused these issues, including the complexity of the global economy, China’s cyclical economic structure change, and major country competitiveness. The phrase “China’s economy is peaking” misrepresents China’s progress. If deceived by such sounds, chances are lost.
2024 is action-packed. Foreign investment, commerce, and the economy will be stabilized by policies. The dependable and lively business climate in China will provide international investors additional chances.
