Despite Sino-US economic and trade frictions, foreign enterprises have not retreated from China as some American officials predicted they would. Instead, many have increased investment in the Chinese market.
Thermos Fisher Scientific, an American biotechnology product manufacturer, signed agreements on Aug. 21 with Suzhou New District in east China’s Jiangsu province, to increase capital and launch a new business project in the city.
The temporary frictions will not hinder the company’s long-term development in China, said Syed Jafry, senior vice president of the company.
Pentair, a U.S.-owned water treatment company, invested a total of $16 million into the research and development of the Chinese market this year. Chen Xia, finance director, Asia Pacific, Pentair, said the company is positive about the potential of China and will continue to invest in the country.
China’s actual use of foreign capital maintained stable growth in the January-July period, with over 24,000 newly established foreign-invested companies.
The actual use of foreign capital exceeded 530 billion yuan, increasing by 7.3 percent year-on-year.
With a population of nearly 1.4 billion and the world’s largest middle-income group, China is one of the most attractive investment destinations in the world. To date, about 98 percent of the world’s top 500 companies have invested in China.
The country has optimized its business environment and furthered reform and opening-up to draw in more foreign companies. This March, its national legislature passed the foreign investment law to provide stronger protection for overseas investors.
Last year, China’s ranking in ease of doing business jumped to 46th place, up from 78th in 2017, according to a report released by the World Bank.