Multinationals bullish on Chinese growth
▶ New quality productive forces to create new opportunities: report
Multinationals’ development in China is an important part of the country’s path to Chinese modernization, a new report showed on Wednesday, calling for multinationals to continue investing in China with steadfast confidence and seize opportunities created by its continuous opening-up, development of new quality productive forces and other factors.
In each of the past five years, tax revenue generated by foreign-funded enterprises exceeded 17 percent of the country’s total, while their trade accounted for more than 30 percent of the country’s total, according to a report released at the Qingdao Multinationals Summit, which kicked off in the coastal city of Qingdao, East China’s Shandong Province on Wednesday, state broadcaster China Central Television (CCTV) reported.
Multinationals have been direct beneficiaries of Chinese modernization. From 20182022, the income of multinationals operating in China grew by an annual average of 4.1 percent, CCTV reported.
According to global multinational Standard Chartered Bank’s most recent financial report, its onshore and offshore revenue from China recorded double-digit growth in the first half of 2024, excluding the impact of interest rate volatility, suggesting that China is the group’s largest revenue generator.
“China’s continuous opening-up and the long-term growth prospects of the Chinese economy will continue to bring tremendous growth opportunities for foreign financial institutions,” Lu Jing, the new president of Standard Chartered Bank (China) Co, was quoted as saying in a press release sent to the Global Times.
In the first seven months of the year, at least 43 foreign institutional investors were approved as new qualified foreign institutional investors in China, marking the continuous opening-up of China’s financial sector, the Shanghai Securities News reported, citing data from the China Securities Regulatory Commission.
“With China’s steady economic growth, the country remains a popular destination for foreign investment, especially in technology innovation, the energy transition, pharmaceuticals and consumer goods,” Ginger Cheng, CEO of DBS China, told the Global Times.
The way we look at the determinants of long-term growth potential is through the lens of innovation. When we look at the kind of investments China is making, in educating its population, providing it with skills for the next wave of technology, as well as the output by Chinese scientists, we are encouraged for the long-term potential of China, Cheng said.
Despite the challenging global economic environment, China continues to attract significant foreign investment, indicating that foreign enterprises remain optimistic about the future of the Chinese market, Bian Yongzu, executive deputy editor-in-chief of Modernization of Management magazine, told the Global Times.
China’s economic growth is increasingly being driven by domestic demand. This increase, along with burgeoning sci-tech innovation, will bring new investment opportunities for foreign enterprises in China, Bian said.