After several high-profile companies recently announced plans to build factories in China, foreign investors have demonstrated their continued confidence in the Chinese market and investment environment, believes Li Chunding, professor of economics at China Agricultural University, writing for
Haiwainet.cn, a news site run by the
People’s Daily.
German chemistry giant BASF, automaker BMW and US electric car manufacturer Tesla have all revealed plans to build production bases in China. This is a result of China’s continuous efforts to relax entry requirements for foreign companies, Li said.
China’s investment environment has continued to improve in terms of upgraded infrastructure, improved labor quality and more importantly, simpler vetting procedures and better intellectual property protection.
The US is a major and still fast growing source of foreign investment in China, noted Li. As US President Donald Trump works in protectionist ways to bring investment back to the US, the fact provides even more proof of China’s growing attraction to international companies.
As industrial value chains extend globally, national boundaries are now blurred for global companies. Trade attacks under such circumstances are going to hurt the growth of international investment and the world economy as a whole, warned the scholar.
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