Why China Always Attracts More Foreign Investment

Despite the multiple headwinds facing the global economy, China remains one of the top investment destinations, so foreign companies are looking to new opportunities in the Chinese market.

According to the latest data from the Ministry of Commerce and Industry, foreign direct investment (FDI) in mainland China in use was 243.7, up 37.9% year-on-year, to 1 billion yuan in the first half of this year. On a US dollar basis, admission was $ 37.86 billion, up 45.2% year-on-year.

(Photo / Xinhua News Agency)

This strong growth was supported by the record level of FDI in 2021 of 1.15 trillion yuan. This is because China’s strong economic fundamentals and steadily improving business environment continue to attract foreign capital.

A very large market with increasing consumer demand and a continuous transition to more sustainable development has provided some of the most attractive opportunities for foreign investors.

The quest for a better life

From a small office in China, Amorepacific Corporation, a Korean beauty and cosmetics conglomerate, has benefited from China’s rapid growth over the last three decades. Benefiting from Shanghai’s industrial complex, Amorepacific now offers a wide range of products and services, from skin care to color cosmetics, in more than 5,000 stores in 250 cities in China.

Mike Fan, President of Amorepacific China, states that Amorepacific’s growth in China has been driven primarily by improving living standards in China. “Chinese consumers want better quality of life because government goals such as common prosperity promote more inclusive and balanced development of national markets. It is our business development. It gave us a new direction and created new momentum for growth, “he explained.

The success of Amorepacific reflects many years of efforts to provide a better life for the Chinese people and presents significant business opportunities for investors around the world. China’s middle-income group has increased from more than 100 million in 2010 to more than 400 million in 2019, accounting for about 30% of the total population. Meanwhile, the just-held 2022 Beijing Winter Olympics and Paralympics have created new consumer trends, with the rapid popularity of sports such as skiing, attracting new interest among investors.

Decathlon, one of the world’s leading sporting goods retailers, is one of many companies that are on the move to take advantage of new opportunities. “The sports industry is closely linked to economic development,” said Daisy One, vice president of Decathlon China, where Chinese consumers are increasingly adopting a healthy lifestyle and niche such as skiing and camping. He said he was interested in the activity. “We play an active role in it,” she said. She also recalled that sports spending in China should account for more than 4% of total GDP by 2035. I am. “

Sustainable growth

As an integral part of quality development, China’s low-carbon roads are giving new impetus to global green development.

For Vale, a global mining company, the country’s commitment to a transition to a low-carbon economy offers great opportunities. The Chinese market has been Vale’s largest market since 2006. In 2021, Vale was one of the founding members of the Global Low-Carbon Metallurgical Innovation Alliance, launched by the China Baowu Steel Group, the world’s largest steel conglomerate.

“Vale has always put China at the center of its business strategy,” said Tracy Xie, president of Vale China, adding that the company is confident in contributing to China’s green transformation through its product portfolio and technology solutions. rice field.

China has achieved the world’s largest reduction in carbon emissions intensity in the shortest time frame, promising to peak carbon dioxide emissions by 2030 and achieve carbon neutrality by 2060.

According to a report by the French bank Societe Generale, China’s green investment is expected to reach 2.2 trillion yuan annually over the current decade and will rise to 3.9 trillion yuan between 2031 and 2060.

Peter Qiu, Chairman of Deutsche Bank (China) Co Ltd, said: The company will take full advantage of its role in funding sustainable development to help Chinese companies better capture the opportunities offered by the green transition.

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