Statistics from China’s Ministry of Commerce indicate a steady growth of the scale of foreign investment the country has used in the first 10 months of this year.
During this 10 month period, the actual use of foreign investment nationwide reached 800.7 billion yuan, up 6.4 percent year-on-year. In October alone, the actual use of foreign capital nationwide stood at 81.9 billion yuan, up 18.3 percent year-on-year, registering a positive year-on-year growth for the seventh consecutive month.
A worker is busy on the production line at the weaving workshop in an economic development zone in Lianyungang, east China’s Jiangsu Province, Oct. 19, 2020. (Xinhua/Geng Yuhe)
Despite the COVID-19 pandemic, many foreign firms have scaled up investment and optimized their layout in China, a rational decision based on market rules.
China has an ultra-large market, complete industrial supporting capacity, sufficient human resources and good infrastructure. These advantages are an important reason for foreign enterprises to invest and establish a foothold in the country.
The steady growth of foreign investment in China is also attributed to the country’s measures to broaden opening-up and optimize the business environment. Such measures enable foreign-funded enterprises to benefit from China’s development dividends and boost their determination and confidence to develop in the country.
The pandemic has dealt a heavy blow to the world economy, having negative impacts on many multinational companies’ business performance. However, China is the first country to implement regular epidemic control measures in the world, injecting stability and certainty into its economy.
For foreign enterprises, China’s work and production resumption in an orderly manner has demonstrated the resilience of the country as an important global production base. The country’s efforts to expand domestic demand and energize the domestic market have shown the potential of the country as one of the world’s largest consumer markets.
According to an article published on the website of The Wall Street Journal, China became a vital refuge for many U.S. companies as China’s rebounding consumer economy helped offset the damage from tumbling sales back home.