The official newspaper of the Chinese Communist Party highlighted on Monday Beijing’s promises to facilitate foreign investment, at a time when several companies are considering leaving China, given the restrictive measures against Covid-19.
“[Devemos] meet the challenges and strengthen our confidence“, noted an article on the front page of the People’s Daily. “The fundamentals of China’s long-term economic growth have not changed, and we are fully capable of stabilizing the positive trend of development in the use of foreign capital,” the publication said.
According to the Ministry of Commerce, Foreign direct investment in China increased by 26.1%to 74,470 million dollars (70,000 million euros), in the first four months of the year.
“Under the premise of keeping the total amount of foreign investment basically stable, we must continue to optimize the capital utilization structure,” the article added.
“The foreign investment stabilization policy will continue to be strengthened and efforts to attract foreign investment will be intensified (…) A more open Chinese market offers more opportunities for the development of companies around the world,” assured the People’s Daily.
The article echoed statements made by Chinese Premier Li Keqiang at a symposium last week with foreign business groups, where he highlighted the huge potential of the Chinese market.
“We are willing to strengthen exchanges and cooperation with enterprises around the world, enhance mutual understanding, seek greater consensus, and properly deal with conflicts and differences,” Li said at a symposium organized by the China Council for the Promotion of of Trade. International (CCPIT).
Delivering the event’s opening speech, Chinese President Xi Jinping reiterated his promise that China will open its doors “more and more” to foreign investors. “China will not change its determination to open up more,” Xi said.
Nearly 30 institutions and multinational companies participated in the event, including representatives of the European, North American and Japanese chambers of commerce.
Investor concerns about the Chinese market have been mounting, given an intense regulatory campaign that has hit the country’s technology sector and an insistence on blocking measures to contain Omicron, a highly contagious variant of the new coronavirus.
At least 32 cities in China are under full or partial lockdown.
The restrictions affected virtually all businesses, leading to widespread supply chain shocks and an exodus of expats, particularly in Shanghai, the country’s financial “capital.”
This also exacerbated the decline in Chinese company shares. Chinese shares traded in the United States have plunged 75% since their peak, eclipsing losses during the 2008 global financial crisis.
A survey conducted by the German Chamber of Commerce earlier this month showed that 28% of foreign employees at 460 companies surveyed plan to leave China before or after their current contracts expire, due to epidemic prevention measures. .
Another report from the European Union Chamber of Commerce in China found that 23% of companies surveyed are considering changing their current investments or investing in other countries sooner.
A survey by the US Chamber of Commerce also revealed that more than half of those surveyed have already postponed or reduced their investments in China.
Li Keqiang acknowledged that foreign companies face obstacles in supply chains and logistics services. “We will continue to address the general concerns of all and seek solutions to the problems [das empresas estrangeiras]Li said.
Beijing has repeatedly promised expand openness and further improve the business environment for foreign companies. But long-standing problems persist, such as market access barriers, regulatory risks and discriminatory rules. Geopolitical tensions have also raised the stakes.
Source: Observadora
