What signal is being released?, The surge in foreign investment has led to a dense influx of executives into China

Recently, multiple executives from overseas foreign companies have visited China intensively. On June 14th, Bill Gates, co-chairman of the Gates Foundation and founder of Microsoft, arrived in Beijing seeking further cooperation with China in areas such as strengthening innovation, global poverty reduction, public health, drug research and development, and rural agriculture. Recently, multiple executives from foreign companies have visited China one after another. On May 31st, Tesla CEO Elon Musk arrived in Shanghai and received high attention from domestic and foreign media. Before and after this, executives from multiple multinational corporations such as Apple, Starbucks, Sanofi, Intel, Siemens, etc. also came to China one after another.

Moreover, some foreign-funded enterprises have seen a sharp increase in investment. The latest data released by the Ministry of Commerce shows that from January to May this year, France, the United Kingdom, and Canada all experienced a significant increase of over 100% in actual investment in China, with France's actual investment in China skyrocketing by 429.7%. What signals do the intensive visits of foreign executives to China send? What does the surge in foreign investment in China explain?

Foreign executives flock to expand cooperation

Not long ago, the German Chamber of Commerce led officials from various German chambers of commerce to visit China for inspection. They were full of enthusiasm for understanding the Chinese market, enhancing mutual trust, and expanding cooperation.

Peter Adrian, President of the German Chamber of Commerce: Through face-to-face dialogue, we have received many positive signals, including the Chinese government's commitment to continuously improving its level of openness and comprehensively optimizing the business environment, which provides certainty for multinational enterprises.

At the end of May, Tesla CEO Musk's 44 hour visit to China received high attention from domestic and foreign media. Before and after this, executives from multiple multinational corporations such as Starbucks, Sanofi, Intel, ADM, and Rio Tinto also visited China. In late March this year, the Minister of Commerce of China held intensive meetings with executives from more than 10 multinational corporations, including Nestle, Procter&Gamble, and Qualcomm.

Siemens Medical CEO Meng Tianqi: China has a large number of R&D talents, and we are committed to building an ecosystem of technological innovation based on the Chinese market.

Siemens President and CEO Bolleren: During my visit to China, I will discuss with relevant departments and clients how to empower the development of the real economy through digital technology and contribute to the high-quality development of the Chinese economy.

Toben Christensen, Senior Vice President of Global Services at Danfoss Group: The investment environment here is constantly optimizing and improving, and we choose to continue to compete with the Chinese market and develop together.

What signals do foreign executives send when they come to China in large numbers?

Foreign executives have come to China one after another, with businesses covering multiple fields such as automotive, consumer, manufacturing, healthcare, finance, and electronic technology. What signal does such intensive visits release?

Pan Yuanyuan, Associate Researcher at the Institute of World Economics and Politics, Chinese Academy of Social Sciences: Low cost, large market, and mature supply chain are important reasons why many foreign companies are strongly optimistic about the Chinese market. From a cost perspective, China has a competitive advantage in comprehensive costs such as labor, raw materials, energy, and logistics; From the perspective of supply chain, China is now the only country in the world with all industrial sectors, and the stability and maturity of the entire supply chain are high; From the market perspective, China's population, per capita GDP, and expected economic growth potential are enormous, making it highly attractive to foreign enterprises. In addition, in recent years, China has introduced multiple relevant policy measures to ensure stable returns of foreign investment.

Numerous foreign-funded enterprises continue to increase their investment in China

Foreign executives have come to China one after another to seek and expand cooperation, while also using practical actions to continue casting a vote of trust in the Chinese market.

The BMW Group's new power battery project with a total investment of 10 billion yuan is fully underway in Shenyang; Danfoss Group's 9th capital increase in Jiaxing, Zhejiang in 18 years; Rio Tinto Group has signed a contract with the CIIE for the next 5 years, fully utilizing the CIIE platform to explore development opportunities

Nordkovic, director of BMW Group: Chinese path to modernization has created new opportunities for foreign investors to invest in China, which has aroused widespread concern and interest around the world.

In the eyes of Siemens President and CEO Bole Ren, the Chinese market is large and innovative with rapid progress. He stated that Siemens has made significant investments in China in the past and will continue to do so in the future. He also revealed that he has launched an important plan to accelerate development and further increase capital in China.

Siemens President and CEO Bo Leren: We will invest 1.1 billion yuan to build Siemens Industrial Automation Products China Intelligent Manufacturing Base in Chengdu. At the same time, we announce the establishment of Siemens Digital Technology Co., Ltd. to comprehensively enhance our research and manufacturing capabilities in the fields of automation and digitalization.

Intensify investment attraction efforts and strengthen investment service guarantees

On the 16th, a spokesperson for the Ministry of Foreign Affairs stated that recent reports released by some Chinese business associations show that most foreign companies interviewed are optimistic about the prospects of China's economic development. Among them, nearly 60% of American companies hold a positive attitude towards China's economic recovery, 86% of British companies are optimistic about the long-term potential of the Chinese market, and over 90% of Japanese companies plan to expand or maintain their business in China. Currently, China is increasing its efforts in attracting investment and strengthening investment service guarantees. China is constantly providing opportunities for the world with its new development and high-level opening up.

On the 14th, the National Development and Reform Commission announced that China is studying and introducing policies and measures to attract more foreign investment, introducing policies to attract more foreign investment, reasonably reducing the negative list of foreign investment access, and further improving the promotion and service of foreign investment.

Yuan Da, Deputy Secretary General of the National Development and Reform Commission: We will continue to hold a series of international industrial investment cooperation activities to provide a platform for multinational corporations to invest in China and attract local investment. We will improve the mechanism of direct contact points for foreign-funded enterprises, smooth communication channels, timely coordinate and solve problems and reasonable demands raised by enterprises, and provide convenience for enterprise investment and production and operation.

Currently, the number of newly established foreign-invested enterprises and the actual amount of foreign investment used in China are showing a stable and positive trend. In the first four months of this year, the number of newly established foreign-funded enterprises in China increased by 31.1% year-on-year, and the actual amount of foreign investment used was 499.46 billion yuan, a year-on-year increase of 2.2%. According to a recent research report by the China Council for the Promotion of International Trade, 97% of foreign companies surveyed rated the foreign investment policies introduced by the Chinese government since the fourth quarter of last year as "satisfactory" or above; In the first quarter of this year, the satisfaction rate of foreign companies interviewed with indicators such as obtaining financial services, market access, obtaining business premises, and promoting market competition exceeded 80%.

What is the signal of a surge in foreign investment in China due to the high concentration of executives coming to China?

How enthusiastic are some multinational corporations investing in China? According to data released by the Chinese Ministry of Commerce, from January to May this year, actual investment in China by France, the United Kingdom, Canada, and Japan increased by 429.7%, 179.2%, 170.1%, and 63.3%, respectively. What does the growth of investment by some foreign companies in China indicate?

Pan Yuanyuan, Associate Researcher at the Institute of World Economics and Politics, Chinese Academy of Social Sciences: The growth of foreign investment in China is sending two signals. On the one hand, China is increasing its efforts to attract foreign investment; On the other hand, foreign investment requires the Chinese market. The stable returns in the Chinese market are a direct driving force for foreign companies to invest in China. The large scale and multi-level nature of the Chinese market are also important reasons for attracting foreign investment from multiple industries to China.