In a world where global foreign direct investment (FDI) is on a downward trajectory, China emerges as a beacon of growth, attracting increased foreign investment focused on new quality productive forces. According to the World Investment Report 2024 published by the United Nations Conference on Trade and Development, global FDI in 2023 amounted to $1.3 trillion, marking a 2 percent decrease from the previous year.
This global downturn is influenced by two significant factors. Firstly, the persistent sluggishness of global economic growth has made multinational corporations more cautious. The Global Economic Prospects report released by the World Bank on June 11 indicates that global economic growth is expected to stabilize at 2.6 percent, significantly lower than the pre-pandemic decade average of 3.1 percent. This slowdown has dampened enthusiasm for cross-border investments.
Secondly, escalating international geopolitical tensions have introduced new obstacles to cross-border investments. Developed countries adopting deglobalization policies have tightened regulations on foreign investments and increased subsidies to domestic companies. These actions undermine market rules and the international economic and trade order, destabilizing global industrial and supply chains. Consequently, normal economic and trade exchanges have become increasingly challenging.
Amid these global challenges, China stands out by attracting increased foreign investment. Investors are drawn to China’s commitment to high-quality development, its vast market potential, and continuous efforts to improve the business environment. The surge in foreign investment is not just in quantity but also in the quality of productive forces, focusing on innovation, technology, and sustainable development.
China’s ability to buck the global trend highlights its pivotal role in the international economy. As other nations grapple with economic slowdowns and geopolitical uncertainties, China’s stable growth and open policies provide a haven for foreign investors seeking new opportunities.
Looking ahead, China’s focus on fostering new quality productive forces positions it to continue attracting foreign investment. By prioritizing innovation and sustainable development, China is set to play a crucial role in revitalizing global economic growth and maintaining the stability of international industrial and supply chains.
Reference(s):
Foreign investment expands in China for new quality productive forces
cgtn.com
