Foreign investors show their confidence in Chinese economy

Despite the pandemic-induced turbulence in the market and the faltering global economic recovery, China continues to attract foreign investors thanks to its strong economic recovery and resilience, huge market and concerted efforts to improve the business environment.

China was the only major economy to realize positive growth last year, and in the first half of this year, its gross domestic product grew by 12.7 percent year-on-year. Even China's manufacturing purchasing managers' index, a leading economic indicator, has remained above the "expansion line" for 18 consecutive months, indicating the continued expansion of the manufacturing sector.

Bloomberg reports that foreign investors have been increasing their holdings of Chinese stocks since November. And strategists at Goldman Sachs believe that in the global context, China is showing a strong economic and earnings growth potential.

Also, the second China International Fair for Trade in Services held in Beijing, together with the Canton Fair and the China International Import Expo, has become an important platform for China to provide global public goods and share its huge market dividend with the rest of the world. A GDP of more than 100 trillion yuan ($15.47 trillion) and the enormous consumption potential of its huge population, including the world's largest and fastest-growing middle-income group, have made China a dynamic and expanding market.

According to a survey conducted by the European Union Chamber of Commerce, about half of the member companies surveyed in China said their profit margin this year is expected to be higher than the global average.

Foreign investors' confidence in the Chinese market also comes from China's stepped-up efforts to improve its business environment. The delegation of power to lower-level agencies, the implementation of regulations to optimize the business environment, the implementation of the Foreign Investment Law, the shortening of the negative lists for market access and foreign investment access, and the orderly opening up of the financial sector are showing China's determination to open up its market wider to the outside world.

The 28 percent year-on-year growth in the FDI actually used in China in the first half of this year and the willingness of more foreign companies to increase their investments in China show that the country remains one of the most attractive FDI destinations.