Recently, Mark Hutchinson, CEO of Future Industries of Australia’s Fortescue Metals Group, while giving an interview to CMG reporter, said that we want to cooperate with Chinese companies, and produce renewable energy equipment. Because China’s automated production technology is amazing.
This has been confirmed by the reports released recently by several foreign commerce associations based in China like this Australian company. For example, according to a survey conducted by the China-US Chamber of Commerce, 66 percent of US enterprises based in China said they would invest more capital in China in the next two years. According to a report released by the China-EU Chamber of Commerce, 60 percent of enterprises said they would “moderately increase” or “significantly increase” their research and development spending in China over the next five years. And according to a survey conducted by the China-Australian Chamber of Commerce, more than 60 percent of Australian companies consider China as the world’s top three investment destinations.
What is noteworthy is that from January to April of this year, China’s actual use of foreign capital was nearly 5 trillion yuan, an increase of 2.2 percent over the same period last year. Foreign companies do not just open shops or build factories through investment. Rather, they are rapidly setting up their research and development centers in China. Why? Because China’s market prospects, profits, innovation environment and policy continuity are all very attractive. China is said to have the world’s largest industrial system, with the most complete categories and complete supporting facilities. It is conducive to foreign enterprises to obtain high-quality raw materials and auxiliary parts at low cost and increase profits.
At the same time, China’s strong infrastructure construction also saves a lot of cost for enterprises. In recent five years, the rate of return on foreign direct investment in China has reached 9.1 percent, which is the highest in the world. Presently the world economy is facing challenges like unilateralism and trade protectionism. Some countries are trying “decoupling and breaking chain” to suppress China. But reality has shown that “decoupling” from China is a risky move.
(Credits- China Media Group, Beijing)
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