China has become the most attractive FDI nation, surpassing the
United States for the first time, the latest survey result shows.
The world-renowned consulting company A.T. Kearney announced the
result from the survey of the Foreign Direct Investment (FDI)
Confidence Index Monday.
It
indicates that while most nations' power to attract investment is
in decline, China's continues to grow. Increasing numbers of
investors are expressing interest and confidence in the Chinese
market.
Several factors contributed to China's number one position, include
its populous market, continued economic growth, stable political
situation, sound investment environment, WTO membership and
successful bid for the Olympics, said Paul A. Laudicina, managing
director of global business policy council of A.T. Kearney.
He
said China has become the first choice for global manufacturers
because they have strong confidence in China's raw materials and
skillful personnel.
In
addition, China's enormous potential in the finance, service,
infrastructure, telecommunications, wholesales and retail
industries will also attract a great deal of foreign capital.
Laudicina said that, by 2005, half of all new 10,000-US dollar
annual salary earners will be Chinese, noting that strong buying
power is another factor for FDI flow.
The A.T. Kearney official added that China is not only a recipient
of FDI, but also an investor.
Last year, the top 12 Chinese state-owned enterprises invested 30
billion dollars in foreign countries, an amount equivalent to the
entire investment made by Latin America. Many Chinese small- and
medium-sized companies also made investments in over 40
countries.
In
order to maintain its advantage, China needs to strengthen
infrastructure construction and promote the balance of local
economy, he said.
(Xinhua News Agency September 24, 2002)
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