A view of Beijing's CBD area. [Photo/cfp.cn]
Most foreign companies consider China an important investment destination, and
Experts said that China is expected to become increasingly attractive to foreign investors, underpinned by its optimized COVID-19 response and steady economic recovery. The country's high-standard opening-up will improve its business climate and help it build stronger competitiveness in attracting foreign investments, they said.
Following a survey involving 210 companies from the United States, Europe, Japan and other countries and regions, the AmCham South China concluded that most participating companies see China as a critical part of their future strategic development plans.
More than 90% of the respondents selected China as one of their most important investment destinations. Around 75% plan to reinvest in China in 2023, including 68% of U.S. companies that are determined to dig deeper into the Chinese market.
The survey shows that China can provide a high return on investment, or ROI, with 76% of the companies reporting a positive overall ROI in China and 49% considering their overall ROI in China to be higher than their global benefits.
"With the optimization of its COVID-19 policies and measures and further opening-up, China is now headed toward recovery and will unleash substantial economic vitality, both greater and sooner than expected," said Harley Seyedin, president of the chamber.
"The survey ... results released today (Monday) show that China's economy will be a crucial locomotive in promoting global economic growth in 2023," he added.
Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation, said, "Rooted in its distinctive capability to align consumption, production and services for foreign investors, China's high-quality development will ensure an increasing influx of foreign investments."
China has also been improving its business climate and strengthening protection of the legitimate rights and interests of foreign investors through measures such as expanding market access, taking bold trials in pilot free trade zones and enlarging its network of free trade agreements, Zhou said.
According to the chamber, more than half of the surveyed companies gained over 30% of their global revenue from China. The companies' profitability showed signs of improvement in 2022. Around 88% of them gained profits in China, an increase of 6%. Up to 90% of U.S. companies achieved profitability.
Jing Ping Yeo, vice-president and head of Asia-Pacific at Cytel, a U.S.-based statistical software company, said the enterprise will comprehensively strengthen its efforts to tap into the potential of the Chinese market in 2023.
The survey further found that the rising operation and labor costs were the two biggest challenges that companies faced in South China in 2022.
Uncertainties in China-U.S. relations influenced the confidence of some companies, but a "possible marginal improvement" in their bilateral ties is also expected.
