Foreign investors continue to show strong confidence in China's economic landscape, expanding their investments and operations despite recent challenges. In 2023, China's actual foreign direct investment (FDI) reached over 1.13 trillion yuan (approximately $158.89 billion), marking the third highest in the nation's history despite an 8% decline from 2022.
The surge in foreign-invested enterprises is notable, with new establishments rising by 39.7% year-on-year to 53,766 in 2023. Prominent companies like Airbus have opened their first lifecycle service center outside Europe in Chengdu, while KFC expanded its presence to over 10,000 stores across China by December 2023.
A survey by the European Chamber of Commerce in China revealed that 59% of the surveyed companies consider China a top three investment destination. Experts attribute this optimism to China's substantial internal driving force and potential for sustained growth.
Tian Xuan, vice dean of Tsinghua University's PBC School of Finance, stated, \"China's economy has sufficient internal driving force and great potential for sustained growth.\" This optimism aligns with the Chinese government's economic growth target of around 5% for 2024, as announced during the Two Sessions.
Premier Li Qiang emphasized that the growth target considers the need to boost employment and incomes while mitigating risks, aligning with the objectives of the 14th Five-Year Plan for economic development (2021-2025).
Despite facing external uncertainties and challenges like over-capacity in certain sectors, China's vast market, comprehensive industrial system, high-caliber workforce, and growing sci-tech innovation capacity provide multiple advantages for continued economic development. The country's manufacturing prowess, representing 30% of the world's total manufacturing-added value, and its position as the second-largest consumer market and the largest online retail market further bolster investor confidence.
Wang Changlin, vice president of the Chinese Academy of Social Sciences, added, \"The Chinese economy enjoys capability, advantages and opportunities to sustain growth, and the long-term positive trend remains unchanged.\"
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Foreign investors, experts confident about China's economic potential
cgtn.com
