China is rising up to the challenge in the face of global uncertainties as the country ratches up its foreign direct investment capability, a new study revealed on Tuesday.
According to the 2019 Report on Foreign Investment Growth in China published by the Institute of International Economy at the University of International Business and Economics in Beijing, from 2008 to 2018, China's business environment index for foreign investment was in the top 10 among a list of 30 countries and regions.
"Foreign investment's business environment has continued to improve, but uncertainties have increased," the annual academic research edition disclosed.
"Overall, the business environment in China is expected to ensure relatively stable foreign direct investment in the future," University of International Business and Economics, professor Li Yumei said.
Evolving Economic Landscape
The ongoing friction between China and the US is hampering the flow of foreign capital into high-tech industries in mainland China. But there is still relatively little impact, Li said, adding that the country needs to implement more effective policies and initiatives to minimize the potential future effects.
The report comes in the midst of profound changes in the domestic and international economic environment of China. There has been an increasing anti-globalization trend on the international level, a clamor in the developed countries for the return of their manufacturing industries, the study said.
The report stated that in order to respond effectively to such changes, China needs to continuously deepen reforms and open up, constantly improve the business environment for foreign investors, and use more foreign investments.
China has stepped up efforts to improve foreign investors' business environment, such as renewing negative lists, promoting the Foreign Investment Law, and establishing more pilot free-trade zones.
FDI Momentum Up
Based on Ministry of Commerce data, during the first 10 months of 2019, FDI in the Chinese mainland reached 752.41 billion yuan ($107.28 billion), up 6.6 percent year-on-year.
Foreign investment flowing into China's high-tech industries grew to 222.4 billion yuan in the period from 39.5 percent year-on-year, representing nearly 30 percent of total FDI.
Sang Baichuan, Institute Director and Academic Research Chairman, said the country needs to make sure that the market plays a decisive role in resource allocation, which is a "vital base" for improving the foreign business climate.
Zhang Xiaotao, dean of the School of International Economics and Trade at the Central University of Finance and Economics said that the use of foreign investment has raised new challenges for the new era.
Move Over, Australia
Meanwhile, China currently ranks No. 1 in Papua New Guinea's list of top foreign direct investors.
The Peoples Republic of China's investment figures showed that China has outranked Australia in the conventional FDI Shareholder Figures, relegating the former in the second spot.
Clarence Hoot, Managing Director of the Investment Promotion Authority announced this at the Startup PNG 2019 convention held at APEC Haus in Port Moresby on Tuesday.
