Cross-border corporate takeovers expected to grow: official
China became the top destination for foreign direct investment (FDI) which shows that foreign investors hold positive perspectives on China's further opening-up, experts said as they comment on the UN's latest "Investment Trends Monitor" report.
In the first half of 2018, China attracted an estimated $70 billion of inflows, increased 6 percent year-on-year, while the global FDI dropped by 41 percent during this period, said the UN Conference on Trade and Development (UNCTAD) on Monday in the report.
Recent economic data showed that in spite of uncertainties in the external environment, the fundamentals of the Chinese economy are positive and we are fully confident, Lu Kang, spokesperson of the Chinese Ministry of Foreign Affairs, told a press briefing on Wednesday. "I believe that all countries and enterprises make choices in line with their own interests, which are also the right choices," he said, commenting on UNCTAD's FDI report.
The country's further opening up and implementation of related policies are the main cause, said Sang Baichuan, director of the Institute of International Business at the University of International Business and Economics.
According to the UN report, the U.S. was the third biggest destination, attracting $46.5 billion of inflows.
U.S.'s unilateralism and protectionism give foreign investors negative expectations, Sang added.
"China continuously advocates multilateralism, deepens reform, expands opening-up. China attaches great importance to foreign investment by improving the business environment and protecting intellectual property rights," said Zhang Fei, deputy director of the Research Center for Foreign Investment of the Institute of International Trade and Economic Cooperation of China's Ministry of Commerce.
"Foreign investors are optimistic on the future development trend of China's economy and industry. They hold a positive perspective for investment in China," Zhang said.
As China's overall inflow increases, an expert noted there will be a structural change.
"Foreign investment seeking markets and high-end production factors will take a larger percentage in China, as consumption and manufacturing further upgrade in the country," Bai Ming, deputy director of the Ministry of Commerce's International Market Research Institute, told the Global Times.
Since China implemented the foreign investment management model with pre-entry national treatment plus a trimmed negative list, it has greatly relaxed market access, fully opened up the general manufacturing industry, and expanded the service industry, Zhang said.
In contrast to the the overall decline in foreign investment, the report highlights a 42 percent increase in greenfield projects, namely start-up projects and developing countries attracted twice as much FDI as developed countries overall.