Despite overseas concerns suggesting foreign companies transfer China supply chains due to disruptions caused by the novel coronavirus (COVID-19) outbreak, foreign business insiders provided reassurance that China remains attractive to international businesses.
“Given China’s population, domestic market consumption, political stability, and business ecosystems, I don’t expect companies will move out their supply chains in short term," Victor Cadena, vice president of the Mexican Chamber of Commerce in China, said in an interview with the Global Times.
As China has shown signs of economic recovery since the outbreak, Cadena expects foreign companies will maintain current supply chains.
China-Mexico trade has grown, even though foreign imports and exports fell due to the outbreak.
According to statistics from China’s Ministry of Commerce on Wednesday, in East China’s Fujian Province alone, imports and exports with Mexico during Q1 2020 reached $711 million, a 22.8 percent increase year-on-year.
Although China’s economy was impacted by global supply chain disruptions, recovery signs have emerged, and it will only be a matter of time before the country gets back on track, Cadena said.
“China represents one-third of world’s economic growth, so it is in interests of everyone worldwide that China’s economy recovers as soon as possible and vice versa, as we live in a multilateral economy," Cadena said, adding that China’s policies for fostering and welcoming foreign investment have been opening up gradually and continue to improve each year.
Cadena is not alone in his confidence in China’s economic recovery among foreign investors.
Joerg Wuttke, president of the European Union Chamber of Commerce in China, told the Global Times that it was unlikely COVID-19 would create a Chinese market exodus.
Most European companies in China are for the local market, which is still expected to grow extensively in the coming years and decades, so the market is too important for European companies to leave, Wuttke explained.
In efforts to generate more foreign investment, the Chinese government will implement specific policies this year.
Deputy head of the National Development and Reform Commission Ning Jizhe said at a press conference on Sunday that the 2020 edition of the industrial catalog on encouraging foreign investment would be released this year, with more items for encouragement added, and aimed at promoting high-quality development in the manufacturing sector.
Major foreign-funded projects on electronic information, new materials, and advanced manufacturing will also be launched this year, Ning said.
Source: Global Times
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