BEIJING, March 21 (Xinhua) — Foreign companies are seeking new opportunities in the Chinese market as the country remains one of the top investment destinations despite numerous headwinds plaguing the global economy.
Mainland China’s foreign direct investment (FDI), which is actually utilized, rose 37.9 percent year on year to 243.7 billion yuan in the first two months of this year, the latest data from the Ministry of Commerce showed. In US dollar terms, inflow rose 45.2 percent year-on-year to $37.86 billion.
The strong growth built on a record high of 1.15 trillion yuan in foreign direct investment in 2021, with China’s solid economic fundamentals and ever-improving business environment continuing to attract foreign capital.
A super-large market with increasing consumer demand, along with a steady transition to more sustainable development, has brought some of the most exciting opportunities for foreign investors.
LOOKING FOR HIGHER QUALITY OF LIFE
From just a small office space in China, Amorepacific Corporation, a beauty and cosmetics conglomerate from the Republic of Korea, has been one of the beneficiaries of China’s rapid growth over the past 30 years.
With an industrial park in Shanghai, Amorepacific today offers a wide range of products and services from skin care to color cosmetics in more than 5,000 stores in 250 Chinese cities.
Amorepacific China’s growth is largely due to the rising living standards of Chinese people, said Mike Hwang, president of Amorepacific China.
“Chinese consumers will demand a higher quality of life as government goals such as shared prosperity promote a more complete and balanced development of the country’s market. This has given us a new direction for business development and generated a new impetus for growth.”
Amorepacific’s success reflected China’s years of efforts to ensure a better life for its people, which has created tremendous business opportunities for global investors.
China’s middle-income group has grown from over 100 million in 2010 to over 400 million in 2019, accounting for about 30 percent of the total population.
The just-concluded Beijing 2022 Winter Olympic and Paralympic Games have created new consumer trends, with sports such as skiing quickly gaining popularity and sparking new interests among investors.
Decathlon, a leading global sporting goods retailer, is one of many companies that have jumped on the bandwagon to take advantage of the new opportunities.
“The sports industry is closely linked to economic development,” said Daisy Wang, vice president of Decathlon China, noting that Chinese consumers are increasingly adopting a healthy lifestyle and gravitating towards niche activities like skiing and camping. “We play an active role in that.”
Noting that China’s sports spending is expected to account for more than 4 percent of total GDP by 2035, Wang said, “Decathlon has full confidence in the future of China’s sports market.”
As an integral part of high-quality development, China’s low-carbon path has served as a new impetus for green development around the world.
For Vale, a global mining company, the country’s quest to make the transition to a low-carbon economy presents tremendous opportunity.
The Chinese market has remained Vale’s largest market since 2006. In 2021, Vale joined as one of the founding members of the Global Low-Carbon Metallurgical Innovation Alliance initiated by China Baowu Steel Group, the world’s largest steel conglomerate.
“Vale always puts China at the heart of our business strategy,” said Tracy Xie, President of Vale China, who noted that the company is confident of contributing to China’s green transformation through its product portfolio and technical solutions.
China has committed to peak carbon emissions before 2030 and achieve carbon neutrality before 2060, marking the world’s largest reduction in carbon emissions intensity in the shortest amount of time in history.
A report by French bank Societe Generale estimates that China’s green investment needs to reach 2.2 trillion yuan a year in the current decade, and the amount will increase to 3.9 trillion yuan over the period 2031-2060.
“We see great potential in China’s green finance,” said Peter Qiu, President of Deutsche Bank (China) Co., Ltd. Green Transition.