Reopening and new legislation boost foreign investment in China

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The flow of Foreign Direct Investment in China grew 23.7% in September compared to the same period last year, reaching the benchmark of $ 14.25 billion, announced the Chinese Ministry of Commerce last week. The number supports the 15% growth already registered in August, also in relation to the same period of the previous year, and reinforces the confidence of international investors in the Asian giant, despite the trade war with the USA.

In the year to date, China has already attracted $ 103 billion in investments coming from outside the country – an increase of 2.5% compared to the first nine months of 2019. In the same period, Vietnam, which is seen as an alternative to China, attracted “only” US $ 21.2 billion, a number 19% lower than in the previous one.

For the Ministry of Commerce, the increase in foreign direct investments is due to the reopening of economic activities after months of restrictions imposed by the coronavirus pandemic. But not only. At the beginning of the year, the Chinese government approved a new legislation to make the country more receptive to foreign companies. Each province in the country has created a hotline and a call center to meet the demands of these companies.

Beijing has also reinforced foreign investors who intend to continue loosening restrictions on foreign companies, including improving the country’s business environment. “Let’s build a more open financial system“Promised Chen Yulu, deputy director of the People’s Bank of China, the country’s central bank.

In January, China and the United States signed the first phase of a trade agreement, agreeing that the Americans would lower the tariffs imposed on Chinese products, while the Asian country would buy another $ 200 billion in US products. The pact also provided for the elimination of Chinese barriers to the performance of American companies in the financial sector, opening up a promising market for Americans in Asia.

Source: Exame

The flow of Foreign Direct Investment in China grew 23.7% in September compared to the same period last year, reaching the benchmark of $ 14.25 billion, announced the Chinese Ministry of Commerce last week. The number supports the 15% growth already registered in August, also in relation to the same period of the previous year, and reinforces the confidence of international investors in the Asian giant, despite the trade war with the USA.

In the year to date, China has already attracted $ 103 billion in investments coming from outside the country – an increase of 2.5% compared to the first nine months of 2019. In the same period, Vietnam, which is seen as an alternative to China, attracted “only” US $ 21.2 billion, a number 19% lower than in the previous one.

For the Ministry of Commerce, the increase in foreign direct investments is due to the reopening of economic activities after months of restrictions imposed by the coronavirus pandemic. But not only. At the beginning of the year, the Chinese government approved a new legislation to make the country more receptive to foreign companies. Each province in the country has created a hotline and a call center to meet the demands of these companies.

Beijing has also reinforced foreign investors who intend to continue loosening restrictions on foreign companies, including improving the country’s business environment. “Let’s build a more open financial system“Promised Chen Yulu, deputy director of the People’s Bank of China, the country’s central bank.

In January, China and the United States signed the first phase of a trade agreement, agreeing that the Americans would lower the tariffs imposed on Chinese products, while the Asian country would buy another $ 200 billion in US products. The pact also provided for the elimination of Chinese barriers to the performance of American companies in the financial sector, opening up a promising market for Americans in Asia.

Source: Exame

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