US Media: China Actively Chases Foreign Capital

   The American Wall Street Journal article on April 9, original title: China Chases Foreign Capital to Fend Off Coronavirus Slowdown.

   Japanese glass supplier AGC Beijing Branch received information from a trade organization with a Chinese government background in early February: the current difficult period  , Please let us know what help we can provide.  The company complained that the prevention and control of the epidemic in northern China hindered the transportation of products, and the related issues were resolved within a few days.  The head of the company's China Department said: "Their response was very rapid and thorough." As the epidemic hit the Chinese economy, Beijing was working hard to prevent the withdrawal of foreign companies and strive for foreign capital inflows.  Business executives said that Chinese officials are helping foreign companies solve supply chain bottlenecks and resume production.  Resolving worries for foreign companies highlights China's desire to help companies, including foreign companies, resume work, hoping to start an economic growth engine to offset the losses caused by the epidemic.

    The United Nations said last month that in the face of the possibility of slowing global economic growth, many companies may cut foreign investment.  Since the outbreak of the new crown virus, some foreign brands have suspended expansion plans in China, and others are considering evacuating.  At the same time, some countries have called for the return of manufacturing.  China's actively chasing not only shows concern about the decline in foreign direct investment, but also reflects the current difficulties in other potential foreign destinations to contain the epidemic, China is trying to use the capital recovered from the epidemic crisis.  Erics Peng, chief economist of the Dutch International Bank in Hong Kong, said that China is "the earliest in the world to resume production."     In order to retain foreign investment, China has issued a series of policies in recent weeks, promising to continue to open the market, treat domestic and foreign companies hit by the epidemic equally, and introduce tax reduction policies.  The Ministry of Commerce of China has recently asked local governments to develop to-do lists to help foreign manufacturers restart production.  As of the end of March, 67% of the more than 8,000 foreign companies have recovered more than 70% of their production capacity.

    Even though the outbreak of pandemic occurred, some foreign companies still announced plans to invest in China.  For example, Wal-Mart has announced an investment of 3 billion yuan in Wuhan in the next five years.  Starbucks said earlier that it will invest 900 million yuan to build a baking factory in Kunshan, eastern China.

Henderson (www.liexianda.com)  - 

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