The National Development and Reform Commission (NDRC) of China debunked rumors that US firms are leaving China. China's top economic planner showcased statistics to prove that foreign firms continue to invest in China. The entity also showed survey results that show most foreign firms were also willing to continue their business operations in the country.
An article published on the official website of the National Development and Reform Commission of China claimed that the judgments claiming that foreign firms are leaving China are near impossible. It read that the statistics and facts of foreign firms operating in China showed that they continue to do business in China.
Additionally, the NDRC article also revealed that for the first three quarters of 2019, China acquired 300,000 foreign-invested firms. These firms contributed to China's economy by yielding a 6.5 percent increase in foreign investments. It was also revealed that the influx of investments allowed China to reach a total of 683.2 billion Yuan or 89.14 billion US in foreign direct investments into the country.
The statistical data claimed that more than 90 percent of 200 US companies operating in China have generated steady profits in the year 2019 alone. The 2019 Member Survey of the US-China Business Council also mirrored the statistical data provided by the NDRC.
According to the survey results, 87 percent of foreign firms operating in China did not manifest plans that they wish to halt or transfer their business operations outside of China. Moreover, about 83 percent of the survey participants also admitted that they have no plans to stop their business operations including their planned investments in China in the year 2019.
The NDRC also announced that China has made significant progress with major foreign investment projects in the country for the last two years. Despite the dwindling cross-border investment issue, renowned and successful companies such as US electric car maker Tesla Incorporated and German chemical company BASF are set on launching business projects in China this year.
The article also claimed that China continues to be an attractive investment hub for foreign firms. It was mentioned that China has experienced improving economic growth and has generated impressive investment returns. Moreover, it was claimed that the country harbors a good talent base, has a health manufacturing ecology, adopted consumption upgrades, and has maintained a stable infrastructure and business environment.
Finally, the NDRC also claimed that China has a complete industrial system and that this feature is unique in the worldwide economy. The article further alleged that China possesses all the industrial categories set forth by the United Nations industrial classification and that its infrastructure projects have accelerated the country's growth model shifts.
The NDRC article was a response to a recent report that claimed Hasbro Inc one of the US companies that operate in China has decided to follow suit with other US firms operating in China by dropping about 50 percent of its operations by 2020.
