Nearly 90% of foreign companies expect their profits to remain stable or increase in China over the next five years, with a large number of them identifying technological innovation as the primary growth opportunity in the Chinese market, according to a survey conducted by the China Council for the Promotion of International Trade (CCPIT) involving 700 foreign companies. Over 80% of respondents were satisfied with China’s business environment in the third quarter of 2023, and about 80% anticipate that their profits will remain stable or improve in 2023. Though the global investment sentiment remains subdued, foreign enterprises have sufficient confidence in investing in China, said Zhang Xin, Spokesman for the Beijing-headquartered CCPIT. “Regarding development opportunities, foreign firms have consistently believed that technological innovations are the most significant growth opportunities in the Chinese market for three consecutive quarters,” he said, noting that about half of them have expressed an interest in increasing investment in China’s western region.
China’s peaceful and huge market, as well as its latest move to implement measures to broaden market access for global investors in several key areas, including the relaxation of restrictions on foreign investment in listed companies, will offer multinational corporations more growth opportunities, said Chang Xiuze, Professor of Economics at the Academy of Macro-economic Research in Beijing. Fueled by China’s pool of talent and industrial upgrade, foreign businesses operating in China, especially manufacturers, will continue to establish digitally empowered factories, adding innovation hubs and strive to expand their market share in various sectors, such as automotive, logistics, retail, green technology and high-end manufacturing, he said. Foreign direct investment (FDI) in China’s manufacturing sector amounted to CNY262.4 billion between January and September, a 2.4% increase on a yearly basis, with high-tech manufacturing seeing a growth of 12.8% year-on-year, data from the Ministry of Commerce (MOFCOM) showed. Foreign companies surveyed by the CCPIT expressed the hope that the Chinese government will take steps to ensure the stability of the country’s supply and industrial chains, enhance its industrial support capabilities and clustering effects, and bolster the continuity and stability of policies that assist businesses in times of need.
Zhao Jinping, former Director of the Department of Foreign Economic Relations at the Development Research Center of the State Council, said that for many global business leaders, there has been a significant shift in traditional perceptions about the business environment in China. “They no longer simply expect the government to provide good services. Rather, they now seek government support to facilitate their innovation activities and gain access to sectors previously restricted to them,” he said, as reported by the China Daily.
