“Next China” is Still China

Photo shows a busy container terminal at the Nansha port in Guangzhou, south China’s Guangdong province. (Photo by Chen Zhiqiang/People’s Daily Online)

A wave of executives from prominent foreign companies have been visiting China since the start of the year, seeking opportunities to expand their cooperation with partners in the country. With tangible actions, they have demonstrated confidence in the Chinese market. Their engagement underscores China’s enduring magnetic appeal to international investors.

Multinational corporations are in the best position to describe this magnetic appeal. A Q3 survey by the China Council for the Promotion of International Trade, which covered over 700 foreign-invested enterprises, found that 80 percent of the surveyed companies expect stable or rising profits this year, and nearly 90 percent anticipate stable or increased profits in the next five years.

From January to October, 41,947 foreign-invested enterprises were newly established in China, a year-on-year increase of 32.1 percent. Actual investment from Canada, the UK, France, Switzerland and the Netherlands surged 110.3 percent, 94.6 percent, 90 percent, 66.1 percent and 33 percent, respectively, from a year ago.

Many foreign companies consider investing in China as a “must-have” option, as the open and continuously developing country remains a hotspot for global capital. As Chinese President Xi Jinping pointed out, China has become a synonym of the best investment destination, and that the “next China” is still China.

Photo taken on Nov. 6, 2023 shows an advanced medical device by Siemens displayed at the sixth China International Import Expo. (Photo by Zhai Huiyong/People’s Daily Online)

The increasing foreign investment in the Chinese market stems from a firm belief in the prospects of China’s development. This year, the momentum of world economic growth is sluggish. Destabilizing, uncertain and unpredictable factors are increasing. Economies around the world are facing significant challenges. However, the Chinese economy has withstood the pressure, maintained stability, and improved its quality.

China’s GDP grew 5.2 percent year-on-year in the first three quarters, ranking among the top performers among major economies, and the resilience, vitality, and potential of China’s economic development continued to show this October. China still remains the largest engine driving global growth, and is expected to contribute 1/3 to global economic growth this year.

Facts speak for themselves. The fundamentals of the Chinese economy – its strong resilience, enormous potential, vast room for maneuver and long-term sustainability – remain unchanged. The high-quality development of the Chinese economy injects strong positive energy into global economic growth, bringing about more market opportunities, growth opportunities, and cooperation opportunities.

The confidence in investing in the Chinese market comes from the increasing openness of China. The recently concluded 6th China International Import Expo (CIIE) saw a total of $78.41 billion worth of tentative deals reached for one-year purchases of goods and services, setting a record high, and representing a growth of 6.7 percent compared to the previous year.