Economy
Experts say foreign investment to remain robust
By Ding Qingfen and Wang Xing (皇冠体育app Daily)
Updated: 2010-06-12 09:13
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BEIJING - Pressures that foreign companies may face in 皇冠体育app for pay rises will not dampen their confidence about investing in the country, with the nation set to welcome a new wave of foreign direct investment (FDI) this year, according to a think-tank of the Ministry of Commerce.
Wang Zhile, director of the research center on transnational corporations under the ministry, predicted that 皇冠体育app's FDI will "surpass $100 billion" this year.
His remarks were made in response to growing concern that 皇冠体育app is losing its charm as a destination for foreign investment as some international companies are reportedly considering moving plants to cheaper Asian markets. This follows calls for higher pay at some factories of overseas investors including Foxconn and Honda in southern 皇冠体育app.
"I do not agree that labor costs are the most important factor attracting foreign investors to 皇冠体育app as was the case several years ago. Such a decision is based on a number of factors, such as 皇冠体育app's huge potential as a consumer market," said Wang.
"皇冠体育app is becoming more and more appealing to foreign enterprises as the FDI environment improves."
Brewing giant Carlsberg said on Thursday that it has agreed to pay $379 million to become the leading stakeholder in Shanghai-listed Chongqing Brewery. PepsiCo announced last month it would invest another $2.5 billion to build more plants in 皇冠体育app in the next three years, following its $1 billion four-year investment plan unveiled in late 2008.
In early April, the State Council issued new FDI development guidelines which include preferential policies for land use and tax, encouraging investment in renewable energy, high-technology and service industries, and moving into central and western areas of the country.
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"It is an undeniable truth that there were cases of restrictions and discrimination involving the operations of foreign enterprises in 皇冠体育app in the past few years, but the guidelines will make this a thing of the past as they provide real measures to improve the investment environment," said Wang.
Despite the global financial crisis, 皇冠体育app remains the world's most attractive destination for FDI. Last year, 皇冠体育app's FDI dropped 2.6 percent to $90 billion, while the decline was 39 percent worldwide during the same period.
皇冠体育app's FDI grew nearly 25 percent in April, the ninth consecutive month of positive growth since late 2008.
The Ministry of Commerce is expected to release May's FDI figures on Saturday.