Business executives have highlighted China’s ongoing efforts towards opening up its economy, promoting innovation, fostering consumption growth, and upgrading industries as key factors driving foreign firms to invest in the country. These executives have expressed their determination to maintain and expand their investments in China due to the favorable business environment and practical policies implemented by the Chinese government.
In line with its commitment to attracting global capital and enhancing the investment environment, the Chinese State Council recently issued a comprehensive 24-point guideline. These guidelines focus on expanding market access for foreign investors, reflecting China’s dedication to high-level opening-up.
The government’s commitment to creating a favorable environment for foreign investment encompasses six key areas. These include ensuring the effective utilization of foreign investment and guaranteeing equal treatment for both foreign-invested enterprises and domestic companies.
Yann Bozec, the president for the Asia-Pacific region at Tapestry Group and president and CEO of Coach China, has expressed optimism about China’s efforts to attract foreign investment and boost domestic consumption. Bozec’s group, which oversees luxury brands like Coach, Stuart Weitzman, and Kate Spade, plans to expand its presence in China. The group aims to open 30 new stores in 2023 and an additional 100 stores by 2025. Additionally, Tapestry Group is gearing up for the 6th China International Import Expo, where it will introduce innovative and high-quality products to Chinese consumers.
TE Connectivity Ltd, a Swiss manufacturer specializing in connectors and sensors, is also capitalizing on China’s growing market. The company intends to build a new plant for its automotive business unit, focusing on in-car entertainment systems and high-speed data connection-related products. This move aligns with China’s automotive sector’s transformation marked by innovation, speed, and agility. According to Field Sun, vice-president and general manager of TE Automotive China, rapid response to emerging technologies and applications is essential for automotive component suppliers in China’s dynamic market.
China’s efforts to optimize its business environment and foster high-end manufacturing have yielded positive results. The Ministry of Commerce reports a 35.7 percent year-on-year increase in newly established foreign-invested enterprises in the first half of the year, totaling 24,000.
To further discuss pivotal topics such as green and low-carbon development, the digital economy, and sustainable growth, the 23rd China International Fair for Investment and Trade is scheduled to take place in Xiamen from September 8 to 11. Zhu Bing, director-general of the foreign investment administration department at the Ministry of Commerce, highlighted the significance of these discussions.
Fujian province has also experienced a net inflow of foreign direct investment, amounting to $600 million in the first half. This demonstrates the ongoing interest of foreign investors in various regions of China.
Confidence in the Chinese market remains strong, as demonstrated by Wu Dongming, CEO for China unit at German courier service provider DHL Express. Wu emphasized that China continues to be a crucial market for DHL Express, leading the company to invest further in the country. The company recently inaugurated a new gateway in Wuxi, enhancing its network resilience and service capabilities in the Yangtze River Delta region.
Foreign firms’ determination to invest in China is driven by the country’s commitment to opening up, innovation, consumption growth, and industrial advancement. As China continues to implement practical policies and create a conducive environment for foreign investment, the global business community remains optimistic about the opportunities presented by China’s vast and dynamic market.