China remains magnet for foreign investment

XIAMEN - While some analysts said China is losing its glamour as a major investment destination, business insiders believe the world's second largest economy is no less enticing.

"We are going to open up 110 stores across China in the next three years," said Ray Bracy, senior vice president of Walmart China at the four-day China International Fair for Investment and Trade (CIFIT) that concluded in the southeastern coastal city of Xiamen on Thursday.

Bracy said he was optimistic about China's market potentials, particularly in second and third-tier cities where a middle-class customer base is rapidly growing.

Dai Jianmin, CEO-in-waiting of San Francisco-based Bank of Orient, said at the CIFIT: "Globally speaking, China's economic expansion is among the fastest and business opportunities in many sectors and regions are still great."

Schneider Electric also attaches significance to the China market, the company's second largest market globally. Wang Jie, vice president of Schneider Electric China, said one of the company's strategies is "go west" for "gold mining" in inland regions.

The Zurich-based power and automation technology company, ABB Group, had record sales revenue in China last year. They're also betting on the growth momentum in the west, with branches in the region already established, Cai Ge, senior vice president of ABB China, told Xinhua.

He said rooting in China is the group's long-term strategy.

"It is groundless to say that China's investment environment is worsening," said Dai, dismissing worries that foreign capital is leaving the country.

Official data showed that foreign director investment (FDI) in China dipped by 17 percent in July, the steepest monthly drop since July 2012. The total FDI from January to July also fell by 0.35 percent.

Some analysts said in addition to an economic slowdown, investigations "targeting" foreign companies such as Microsoft, Shanghai Husi Food Co and Japanese auto makers are driving out overseas capital.

Ghazi Abu Nahl, chairman of the World Trade Centers Association, said "is volume of companies leaving more than the volume of those coming? No. You'll see some people leave, which is normal, and more people come."

In his view, China is no longer a low-cost market as price of labor, raw materials and logistics is generally on a rise. Some companies may choose to move to cheaper markets, but more are coming to China.

Peter Joseph, the Executive Director of Association to Invest in USA, said he has confidence in the Chinese economy due to the resilience its already shown.

"Overall, the resiliency and bouncing back of the Chinese economy makes us very confident," said Joseph.

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