Foreign direct investment (FDI) in the Chinese mainland is undergoing a significant transformation, with experts underscoring improvements in quality and dispelling narratives of foreign capital withdrawal. The insights emerged during a panel discussion on CGTN's 'Talking China,' where analysts highlighted China's enduring appeal as a global investment hub.
'China remains among the world’s top three destinations for FDI, even as competition intensifies,' said Wang Wen, Dean of the Chongyang Institute for Financial Studies at Renmin University. He emphasized structural upgrades, citing growth in high-value sectors like medical equipment production, professional technical services, and computer manufacturing. Over 50,000 new foreign-invested enterprises were established in 2024, a 9.9% year-on-year rise, while non-financial outbound direct investment grew 10.5%, signaling balanced economic engagement.
Addressing concerns about market stability, Li Cheng, Director of the University of Hong Kong’s Center on Contemporary China and the World, reframed the debate. 'Criticism often overlooks comparative context. If China’s market isn’t favorable—which market is?' he asked. Li attributed challenges faced by some U.S. businesses to Washington’s restrictive policies rather than Beijing’s economic fundamentals. 'The next China is still China,' he asserted, pointing to untapped potential in domestic consumption and innovation-driven development.
These assessments align with broader economic resilience trends as China transitions toward high-tech industries and sustainable growth models, reinforcing confidence among global investors and analysts.
