Source: People's Daily Overseas Edition
Independently formulate carbon peaking and carbon neutrality goals, vigorously develop new infrastructure, and continuously expand the proportion of renewable energy consumption... In recent years, China has been guided by new development concepts and has continued to promote economic and social development in the process of achieving high-quality development. Comprehensive green transformation.
New ideas guide new trends, and new measures unlock new opportunities. In the context of the severe impact of the new crown pneumonia epidemic on the global economy, foreign media have keenly captured that a sustainable China is still a "hot spot" for global investment.
"Growing Attraction"
In the first four months of this year, foreign direct investment in China increased by 26.1% year-on-year, reaching US$74.47 billion, according to information released by the Chinese Ministry of Commerce. From the perspective of source, the actual investment in China from South Korea, the United States and Germany increased by 76.3%, 53.2% and 80.4% respectively, including investment data through free ports.
Founded in 1973, the US-China Business Council has more than 200 US member companies doing business in China, including many world-renowned brands. According to the agency's 2021 survey of member companies, 95% of the respondents said that their business in China had achieved profitability in the past year, and more than 40% of the respondents said they would increase investment in China.
Regarding the continuous inflow of foreign capital into China, Helge Berger, Assistant Director of the IMF's Asia-Pacific Department and Director of China Affairs, said that China has made significant progress in opening up its financial industry, and the reform is still deepening. For example, the Chinese government has promulgated and implemented a new foreign investment law and reduced the negative list for foreign investment. As China continues its reform agenda of economic rebalancing, deepening structural reforms, and further opening up to the outside world, China's economy will become more resilient and remain attractive to foreign investment.
"Active emission reduction actions will further promote the high-quality development of China's economy and society." The US "Forbes" magazine reported that China is taking stronger climate actions, vigorously promoting and using clean energy and renewable energy, and striving to achieve carbon peaks , carbon neutrality goals. China is in a leading position in solar energy installations and solar technology exports, and is welcomed by the international market. Cleaner air and a better environment brought about by clean technology have improved the quality of life of the Chinese people. There is a strong link between environmental improvements and stronger economic performance, which will improve public health, reduce health care spending, and increase social productivity.
"Havin been rooted in the Chinese market for decades, we have witnessed the rapid development of China's economy and deeply felt the increasing attractiveness of the Chinese market." Liu Guoping, the relevant person in charge of ORIX Group, said recently that China's door is opening wider and the investment environment is getting better and better. The better, it will create a broader development space for foreign-funded enterprises and bring more development opportunities. As one of the world's largest non-bank financial institutions and comprehensive financial service groups, ORIX has carried out in-depth mutually beneficial cooperation with Chinese partners in infrastructure, new energy, medical and health and other fields in recent years, and achieved remarkable results.
"Super Trends in Investing"
According to the "Australian Financial Review" website, the current world economy is facing many uncertainties, and for investors, China has exciting opportunities. Alasdair McHugh, an executive at asset manager Bailey-Gifford, said China's push for "common prosperity" meant sustainable and inclusive economic growth. Many companies are aligned with this policy direction, so there are plenty of investment opportunities to look forward to.
A few days ago, the world-renowned investment firm Credit Suisse sorted out six "super trends" for future global investment: anxious society, infrastructure, technology, silver economy, millennials' values and climate change. The Swiss financial news website "finews" recently published an article saying that Woods, chief investment officer of Credit Suisse Asia Pacific, said that among the six "super trends", the theme of "sustainable development of China" and China's plan to achieve carbon neutrality by 2060 will become the focus of global investment. “In the next 40 years, we will witness the biggest transformation of major economies in centuries. This will undoubtedly lead to long-term, social, and decades-long investment opportunities.”
Foreign media have noticed that among many investment fields, China's renewable energy development has attracted much attention.
Woods believes that about 10% of China's overall energy structure currently comes from alternative energy sources, and this proportion will increase to 90% by 2060, while China's total installed solar power capacity will increase by nearly 1/3 in the next three years. He highlighted the investment themes stemming from this demand: electric vehicles and batteries, especially batteries. Citing an analysis by Bloomberg, he said China's infrastructure investment plan this year will reach as much as $2.3 trillion. "That's one of the reasons why Credit Suisse recently adjusted its outlook for China to 'overweight'," Woods said. "When the Chinese government announces this, we will see a strong market reaction, which will not only only in China, the global market will also get a boost.”
It is not only Credit Suisse that has positive expectations for China's green energy sector. UOB Kay Hian, a Singaporean financial institution, said it insisted on the proposal to “overweight” China’s alternative energy sector. The agency predicts that China's installed wind power capacity will increase by 55 million kilowatts this year, an increase of 15.6% over 2021;
Japan's Daiwa Bank is also optimistic about China's wind power generation sector, saying that China has surpassed the UK to become the world's largest offshore wind power market last year. In a report released at the end of April, the agency projected that China's new offshore wind capacity will grow at an annual rate of 35 percent between 2020 and 2025. Several Chinese coastal provinces and cities have announced ambitious development plans and strong incentives. In this regard, Daiwa Bank said: "Offshore wind power will have great potential, and it can provide support for the development goals of alternative energy in coastal provinces, wher the economy is developed, but the land resources are relatively tight, and there is a lack of onshore resources to develop solar and wind energy. ."
"Powerful spillover effects"
Woodke, president of the European Unio Chamber of Commerce in China, said recently that "the future market" is in China, which is beyond doubt, "we will continue to invest in China".
Deloitte recently released the "2022 Deloitte China Chief Financial Officer Survey Report". This survey focuses on "sustainable development" as a special topic. While the majority of respondents agree with the positive impact China's sustainable development concept will bring and have promoted relevant work, the level of emphasis that companies place on it varies according to the nature of the industry. China's "dual carbon" target has the most significant impact on traditional industries such as energy, resources and industry, and financial services, technology, media and telecommunications industries are also greatly affected.
"China is an important contributor to the recovery of global trade. Given the weight of China's economy in the global economy, China's imports of more raw materials, machinery and equipment and consumer goods have had a strong spillover effect on the world." Helge Berger believes that , the Chinese economy has sufficient resilience and potential, and the Chinese government also has sufficient policy space to promote economic growth. China can also use a variety of policy tools to further steer economic activity towards low-carbon sectors. The digital economy and green investment will contribute to a more balanced economy, as well as to increase employment, incomes, economic resilience and environmental sustainability.
According to an article published on the website of The Diplomat, China's "One Belt, One Road" initiative is now a benchmark for global cooperation, and its characteristics are in line with the goals of multinational companies, bringing new opportunities for global business. The article believes that multinational companies should attach importance to the Chinese market and create a win-win global growth chain. Multinational companies should use their resources and operating experience in the global market to deepen infrastructure construction in countries related to the "Belt and Road", optimize the business environment, and cultivate future markets. Multinational companies should also seize the opportunity of RMB internationalization, reduce delivery and hedging risks in some markets, and fully enjoy the dividends of the Belt and Road Initiative.
On May 17, the American Chamber of Commerce in China released the 2022 White Paper for American Companies in China, stating that China remains the preferred market for American companies, with 83% of companies reporting no plans to shift manufacturing or procurement out of China. Most AmCham member companies believe that staying competitive in the Chinese market is critical to becoming a global winner. AmCham China members remain committed to deepening the Chinese market.
Craig Allen, chairman of the US-China Business Council, said that the trade ties between the United States and China are very deep and close, and many American companies are still optimistic about the Chinese market and plan to increase investment. The win-win cooperation between the United States and China will play a key role in promoting the recovery of the world economy from the COVID-19 pandemic. Many people in the American business community urge the United States to cooperate with China instead of decoupling, and that the two countries should work together to build a more peaceful and prosperous world.
