At the Boao Forum for Asia (BFA) Annual Conference 2024, experts and industry leaders emphasized Asia’s enduring appeal as a dynamic destination for global investment. The conference, themed “Investing in the Future of Asia”, kicked off on March 26 in Boao, south China’s Hainan Province, drawing attention to the region’s potential for economic growth and innovation.
Shamshad Akhtar, former Under-Secretary-General of the United Nations and a member of the BFA Council of Advisors, highlighted the crucial role of foreign direct investment (FDI) in Asia’s development. “The most attractive regions or countries for FDI are those that promote fair market competition, respect sustainable development, and uphold the rule of law,” she stated during the sub-forum on Tuesday.
Akhtar also praised China’s Belt and Road Initiative as a significant complement to traditional FDI, noting its impact in enhancing equitable opportunities for less developed countries in the Asia-Pacific region. “It helps reduce disadvantages in trade and geopolitical influence,” she added.
Echoing this sentiment, Charles Dallara, Chairman and Advisory Partner at Partners Group USA, affirmed that Asia remains a dynamic and attractive destination for investment, particularly FDI. He mentioned that global investors are diversifying their portfolios, with key considerations including market openness, intellectual property rights protection, and regulatory stability.
Tokiko Shimizu, Executive Director of the Bank of Japan (BOJ), pointed out that with ample foreign exchange reserves and well-developed financial markets, Asian countries are better positioned than ever to withstand global economic or financial storms. “Our resilience is a testament to the region’s financial maturity,” Shimizu commented.
Zhou Mi, Senior Research Fellow at the Chinese Academy of International Trade and Economic Cooperation, underscored Asia’s advantage in attracting foreign investment through close cooperation and robust supply chains among regional countries. “We can solve complex problems requiring collaboration in a short time,” Zhou said. “The large population and significant market growth potential in this region are highly attractive to foreign investors.”
Zhou noted that while the focus of foreign investment varies across countries based on their development needs, China’s manufacturing technology is particularly valued. “Foreign investors’ confidence in China stems from the country’s stable business environment, large market size, industrial and technological conditions, and its encouragement and support for innovation,” he explained.
In August 2023, China issued guidelines aimed at further optimizing the investment environment to attract foreign investment. The guidelines introduced 24 measures across six areas, including improving the quality of foreign capital utilization and strengthening foreign investment protection.
During a press conference in January, Chinese Commerce Minister Wang Wentao reported that over 60 percent of the measures have been implemented, with more than 90 percent of foreign-funded enterprises responding positively. “This reflects our commitment to creating a favorable environment for global investors,” Wang stated.
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Asia remains a dynamic, attractive destination for global capital
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