China remains an ideal destination for foreign investment with its improving business environment, growing economy and expanding market access, Minister of Commerce Zhong Shan said in a recent interview. "Smart foreign investors will not give China up," he remarked.
According to the ministry, in April, the actual use of foreign capital nationwide was 70.36 billion yuan ($9.8 billion), up 11.8 percent from the year before. A Ministry of Industry and Information Technology survey shows about 40 percent of these foreign enterprises intend to increase their investment in China.
Besides a huge market and cost-effective workforce, the government is committed to improving the business environment and protecting the rights and interests of foreign investors with the Foreign Investment Law and negative lists. Also, China, a global manufacturing hub, has upgraded from initial low-end manufacturing to high value-added manufacturing, providing more room for foreign investment.
For many multinational companies that have expanded their Chinese market for decades, their growth is closely related to China's development. Leaving China will not only mean they have to rebuild the supply chain but also find another country that provides an equally good business environment. So it is impossible for some countries to realize their dream of repatriating their companies and capital from the world's second largest economy and the largest trader in goods within short term.
(This is an edited excerpt of an article originally published in Beijing News Daily on May 27)
(Print Edition Title: Dream Destination)