Creating hope for the world in time of despair

The United Nations Conference on Trade and Development released a report on Jan 24, saying that foreign direct investment fell by 42 percent year-on-year globally to $859 billion in 2020.

However, FDI inflow to China grew by 4 percent to reach $163 billion, making it the biggest foreign investment recipient, a position previously held by the United States.

Amid the global recession triggered by the COVID-19 pandemic, China is the first major economy to see recovery and it remains an attractive destination for foreign investors. So what role will China play in the post-pandemic era?

The center of the world's economy is shifting toward the Asia-Pacific region. The flow of FDI into Asia dropped by 4 percent in 2020, much less when compared with the rest of the world. In fact, Asia has attracted about one-third of the world's total FDI, with China attracting 19 percent of it. The Asian value chain is rising in the world economic system, with more funds flowing into China.

That in turn shows global investors have high expectations for China and hope to share China's development dividends.

Thanks to its success in effectively containing the spread of the virus, China registered a GDP growth rate of 2.3 percent last year. While most economies were in recession, China stabilized its industrial and supply chains and helped reduce uncertainties in the global market.

For years, China has been promoting the openness of rules and regulations, and improving its business environment.

In 2020, China's Foreign Investment Law came into effect and the negative list for foreign investment became much shorter, better protecting foreign investors and meeting global standards. China has also been building industrial parks where foreign investors can set up factories. To sum up, the world sees hope in China, while China creates hope for the world.

LIU DIAN, A RESEARCHER AT CHONGYANG INSTITUTE FOR FINANCIAL STUDIES, RENMIN UNIVERSITY OF CHINA