Interview: strong, frequent and wide-ranging opening-up Policy to keep China attractive to Foreign Investment-- an interview with Zhan Xiaoning, an official of the United Nations Conference on Trade and Development (UNCTAD)
Geneva, 13 Nov (Xinhua) an exclusive interview: the strong, frequent, and wide-ranging opening-up policy keeps China attractive to foreign investment-- an interview with Zhan Xiaoning, an official of the United Nations Conference on Trade and Development (UNCTAD)
Xinhua News Agency reporter Ling Xin and Chen Junxia
According to a recent report released by the United Nations Conference on Trade and Development (UNCTAD), in the first half of 2019, China's total amount of foreign investment increased by 4% over the same period last year, continuing to become the second largest inflow of foreign capital in the world. In response, Zhan Xiaoning, author of the report and director of the Investment and Enterprise Division of UNCTAD, said that China's strong, frequent and wide-ranging opening-up policy over the past year is the main reason for its continued attractiveness to foreign investment.
In an exclusive interview with Xinhua News Agency reporters in Geneva a few days ago, Zhan Xiaoning said that China's overall attraction of foreign investment shows the characteristics of scale growth and structural optimization. In the first half of this year, China attracted a total of US $73 billion in foreign investment, continuing to be the largest inflow of foreign capital into developing economies. From the perspective of the composition of foreign investment, high value-added services such as the financial industry and high-tech industries attract the highest proportion of foreign investment.
Zhan Xiaoning believes that the key to China's continued attractiveness to foreign investment lies in its own openness. Over the past year or so, China has stepped up its efforts to open up to the outside world and introduced several policies to attract foreign investment and strengthen the provision of services to foreign capital. These include reducing the negative list of foreign investment access, adopting the Law of the people's Republic of China on Foreign Investment, and promulgating the regulations on optimizing the Business Environment. "judging from the open-door policies introduced by various countries for foreign investment, China's open-door policy is undoubtedly the strongest, the most frequent and the widest in scope."
Zhan Xiaoning pointed out that China's open-door policy has also been recognized by international organizations. Last month, the World Bank released the Global Business Environment report 2020, which showed that China's business environment ranking has risen sharply to 31st, ranking among the top 10 economies with the greatest improvement in the global business environment for the second year in a row.
Zhan Xiaoning also believes that China's attraction to foreign investment also comes from China's strong industrial supporting capacity, which is not only reflected in China's complete industrial chain and efficient labor force. It is also reflected in the good R & D environment constructed by many universities and scientific research institutions. He said that despite the current transfer of some low value-added and high labor-intensive industries to Southeast Asia and South Asia, China still has a great advantage in advanced manufacturing.
In addition, Mr Zhan says China's huge economic size and market size also have a natural attraction for foreign investment. Against the backdrop of a general slowdown in global economic growth, China has maintained high economic growth.
However, Zhan Xiaoning reminded that from the overall performance of global foreign capital flows, both the growth rate and flow direction of foreign capital are affected by policy rather than economic cycle. At the same time, affected by the uncertainty of the global economic environment, in order to disperse the risk, the global foreign capital flow is showing the trend of investment diversification.