Asia continues to captivate global investors with its robust economic growth and burgeoning industries, as highlighted during a special session at the Boao Forum for Asia (BFA) Annual Conference 2024 in Boao, Hainan Province.
The session, themed “Investing the Future of Asia,” emphasized the pivotal role of foreign direct investment (FDI) in the region's development. Shamshad Akhtar, former Under-Secretary-General of the United Nations and a member of the BFA Council of Advisors, underscored that the most appealing regions for FDI are those that foster fair competition, respect sustainable development, and uphold the rule of law.
Akhtar also highlighted the significance of the Chinese mainland's Belt and Road Initiative, describing it as a strategic complement to traditional FDI. This initiative is instrumental in providing equitable opportunities and enhancing trade and geopolitical influence among Asia-Pacific nations.
Echoing this sentiment, Charles Dallara, Chairman and Advisory Partner at Partners Group USA, affirmed that Asia remains a vibrant and attractive destination for investment, particularly FDI. He noted that global investors are diversifying their portfolios, with key considerations including the degree of economic openness, protection of intellectual property rights, and regulatory stability.
Tokiko Shimizu, Executive Director of the Bank of Japan, pointed out that Asian countries are now better equipped with ample foreign exchange reserves and advanced financial markets, enabling them to withstand global economic and financial challenges more effectively than before.
Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, emphasized the advantage of regional cooperation and strong supply chains in Asia. \"We can solve complex problems requiring collaboration swiftly. The large population and potential for market growth in this region are highly attractive for foreign investment,\" Zhou explained.
Zhou also noted that the focus of foreign investment varies by country based on development needs. \"China's manufacturing technology is highly valued by foreign investors. Their confidence stems from the stable business environment, vast market size, industrial and technological capabilities, and the country's support for innovation,\" she added.
In August 2023, the Chinese mainland introduced new guidelines to enhance the investment environment, incorporating 24 points across six aspects, including improved utilization of foreign capital and strengthened protection for foreign investments. Chinese Commerce Minister Wang Wentao reported in January that over 60 percent of these measures have been implemented, receiving positive feedback from more than 90 percent of foreign-funded enterprises.
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Asia remains a dynamic, attractive destination for global capital
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