BEIJING, April 28 (Xinhua) — Making a wrong decision in daily life can cause several hours of inconvenience, but when international investors bet on the wrong market, they can miss opportunities and even can lead to significant losses.
China, a major destination for international capital, saw a 20.7% increase in newly established foreign companies in the first quarter of this year, and foreign direct investment (FDI) into the country remained high at $301.67 billion. did. RMB (US$42.46 billion).
But what motivates global investors to choose the Chinese market, especially in the context of the current global FDI slowdown?
For American food giant Kraft Heinz, the answer is an insatiable appetite for premium products. “China has a large population, a vast market space, and the demand for diversified luxury consumption is increasing day by day,” said Frederico Freire Jardim, president of the company's Asia division.
Currently, due to a lack of global demand, consumers have become the most scarce and most sought after resource for any business. As the world's second largest consumer market, China always has buyers looking for quality goods and services.
For US chemical company Albemarle, the answer to the same question is China's world-class industrial and supply chain. “We have more than 100 partner companies in China, and the majority of our equipment comes from domestic suppliers,” said an executive at Albemarle's new factory, which opened this week in southwest China.
The world's leading and most comprehensive industrial system, combined with its efficient logistics, makes China an ideal supplier. From simple parts to complex machinery, raw materials to high-tech products, foreign investors can easily find and obtain what they need.
For British biopharmaceutical company AstraZeneca, the answer lies in China's focus on innovation and deep talent pool. “China has a wealth of innovative talent and huge market potential, all of which are helping to support the growth of our research and development efforts in China,” said CEO Pascal Soriot.
In line with its innovation-driven development strategy, China is currently taking active measures to promote innovation across the board. The company's position in the World Intellectual Property Organization's Global Innovation Index has already improved significantly, rising from 34th place in 2012 to 12th place last year.
For German wire spring manufacturer Köln Liebers, the answer is support from the Chinese government. “We have always felt strong support from the local authorities and the difficulties and challenges we faced were able to be resolved through close cooperation,” said Udo von Reinersdorf, the company's chief financial officer.
The Chinese government will act at all levels to improve services, address enterprises' concerns, build a market-oriented, law-based and internationalized business environment, and protect the legitimate rights and interests of all enterprises. is happening.
These answers illustrate just a few of China's many strengths as an attractive destination for foreign investment. Companies that attempt to break away from China risk losing all of China's advantages, which are difficult to replicate in other countries.
Such advantages helped promote financial success. According to official data, the FDI return rate to China in recent years has been 9.1%, one of the highest in the world.
And this profitability is not a fad, but a long-term trend. China's pursuit of high-quality development and the cultivation of new high-quality production capacity will bring many business opportunities to multinational companies. “Investing in China is investing in the future,” said L'Oréal CEO Nicolas Hieronymus.
In a fertile environment, multinational companies are more likely to grow and blossom. Investing in China appears to be a good option and a necessity to maintain and strengthen competitiveness in the global market. ■
