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China surpasses
US as most attractive FDI nation
BEIJING - 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 on 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.
The index
is based on an annual
survey of chief executive officers, chief financial
officerss and other top executives of Global 1000
companies.
Several
factors contributed to China's No
1 position, including its populous market, continued
economic growth, stable political situation, sound
investment environment, World Trade Organization 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
skilled personnel.
In addition, China's enormous
potential in the finance, service, infrastructure,
telecommunications, wholesale and retail industries will
also attract a great deal of foreign capital.
Laudicina said that by 2005, half of all new
salary earners above US$10,000 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 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.
(Asia
Pulse/XIC)
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