Recently Guangming Daily interviewed Yu Miaojie on China’ investment. The following is the full text of the interview.
When meeting with international business representatives, Chinese President Xi Jinping noted that China has been a major and stable contributor to world economic growth for many years. Currently China is committed to promoting Chinese modernization in an all-round way with a broad market prospect, sound policies and positive security situation, which provide favorable conditions for foreign-funded enterprises to invest and start businesses. With the profound adjustment of the global economic structure, China continues to become a strategic destination for international capital allocation with its unique and significant systematic comparative advantages. The strong resilience and high-quality development potential of China’s economy not only bring competitive returns to foreign-funded enterprises, but also open up new growth space in the global industrial transformation.
In 2024, China’s GDP reached 134.9 trillion CNY, an increase of 5%. The super-large-scale market system, stable economic growth and continuous release of structural opportunities provide a large number of market opportunities for foreign investors to invest in China. At present, China is accelerating the development of a large-scale unified domestic market where key elements such as capital, land, talents, energies, data and transportation can flow smoothly, greatly reducing transaction costs. In addition, China’s domestic business environment is also improving year by year as local communities have successively introduced relevant policies to optimize the foreign investment environment. At the same time, China has dynamically streamlined the negative list of foreign investment access from the policy level, actively guaranteed the national treatment of foreign-funded enterprises and treated foreign-funded enterprises equally in terms of factor acquisition, qualification licensing, standard development and government procurement, creating a transparent and stable rule environment for transnational capital. It is expected that the super-large-scale market and the continuously optimized business environment can provide a strong guarantee for investment in China.
The advantages of industrial systems and industrial agglomeration effect in the whole industrial chains have made the Chinese market more attractive. China is the only country in the world that has all the industrial categories of the United Nations’ industrial classification. China’ s 41 major industrial categories, 207 middle industrial categories and 666 small industrial subcategories have ensured a relatively excellent global chain synergy. This unique advantage enables China to give full play to the industrial agglomeration effect, realize a virtuous circle and bring the effect of ‘1+1>2’. Especially in the field of capital-intensive industries, China has become an irreplaceable hub in the reconstruction of global industrial chains by virtue of its comparative advantages of complete upstream and downstream industrial chains and remarkable industrial agglomeration effect, building a strategic barrier for transnational capital to resist the fluctuation of global supply chains and becoming a preferred place for global investment.
Efficient institutional mechanisms and a safe and stable investment environment have made investment in China more secure and enterprise development more smooth. China has achieved improvement in policy supply efficiency and implementation efficiency and its administrative efficiency ranks among the top in the world. The central and local governments can adjust economic decisions quickly and accurately according to the economic operation, ensure the dynamic adaptation of macro strategies and market practices, giving full play to the institutional advantages of deep integration of a responsible government and an effective market. Meanwhile, the decision-making mechanisms of all departments have avoided many adverse effects caused by administrative inefficiency. China has built the most stable investment environment in the world through the legal and standardized foreign capital supervision framework and is recognized as one of the safest countries in the world, which is convenient for international capital to invest in China.
Rich talent resources and perfect talent introduction and training policies have provided strong intellectual support and innovation power for foreign investment. China has a huge and high-quality talent pool. These talents not only have solid professional knowledge and skills, but also have a deep understanding of China’s national conditions and the laws of China’s economic operation, enabling them to accurately transform the innovation blueprint from experimental results to industrial results. In recent years, under the initiative of ‘Craftsmanship Spirit’, China has trained a batch of high-skilled talents who strive for excellence, offering a solid talent support for industrial development. At the same time, China attaches great importance to the integrated development of education, science and technologies and talents. By implementing the strategy of reinvigorating the country through education, China will increase the support and cultivation of outstanding talents. China is attracting outstanding talents from all over the world with an open and inclusive attitude, injecting new vitality and creativity into industrial development.
China has always adhered to the concept of win-win cooperation, actively advocated building a community of shared future for humankind, and promoted the development of the global economic governance system in a more fair, reasonable and effective direction. For example, by jointly building multilateral cooperation mechanisms such as the BRI, China aims to share development opportunities and responsibilities with other countries in the world, winning wide recognition from the international community. As some foreign media and executives of multinational companies frankly noted, ‘giving up the Chinese market is tantamount to giving up the tickets for growth in the next decade’ and ‘laying out in China is tantamount to investing in the future’. It can be seen that China is attracting the attention of the world and becoming one of the most competitive investment destinations in the world by virtue of its unique advantages and the open concept on global win-win cooperation.
As a main contributor to world economic growth, China’s average contribution to world economic growth is around 30%, which is one of the countries with the highest return on investment in the world. For global capital, investing in China is not only to gain the value of scale dividend, but also a strategic choice to integrate into the systematic innovation network. Amid a period of global economic order reconstruction, China is opening a new investment paradigm in the era of economic globalization with the deep practice of institutional openness.