This strategy explains some of its features, an economist for “Sky News Arabia”, describing what it has achieved as a “miracle”.“.
The first is to encourage investment
- According to United Nations figures, China is the largest investment-attracting country in the world, surpassing the United States, which has occupied this throne for a long period of time..
- Since 2018, the United States has lost almost half of its foreign investment, after major companies preferred to invest in China.
- China recorded a growth in direct investment that exceeded 4%, which pushed it to first place, overtaking the United States, according to the United Nations..
- Financial institutions in Europe expect that China will be the largest safe economic destination in the world in 2028 if it continues this approach that encourages investment..
- According to the Chinese Ministry of Commerce, March 2023, FDI in actual use in mainland China expanded by 6.1 percent year-on-year, reaching 268.44 billion yuan ($39 billion) in the first two months of 2023..
- In particular, foreign direct investment in the high-tech manufacturing sector increased by 68.9 percent during the period compared to last year, while foreign direct investment in the high-tech services sector increased by 23.3 percent year on year..
What is behind the boom?
China’s official news agency (Xinhua) monitored several reasons behind China’s boom in foreign investment, and prompted foreign companies to prefer working with it, including:
- The overall price level in China is relatively low.
- Expanding tax and fee incentives for small businesses.
- Green development and technological progress.
- Currency rates make there flexibility in providing liquidity.
- Implementing more policies aimed at enhancing people’s ability to spend, and developing the citizen’s purchasing power.
- The Chinese market has 1.4 billion consumers, and this prompts companies to invest.
- Provide a stable and secure supply chain, and a highly interconnected infrastructure network.
- Providing affordable labor.
- China’s innovative strength, promote openness to the outside world, and fully integrate domestic and international markets and resources.
Prestige hunting strategy
Economist Ayman Abdulaziz commented to “Sky News Arabia” that China has developed a “miracle-like” strategy to seize a large economic position around the world.“.
Thanks to this strategy, it attracted investments from within the United States and Europe, according to Abdulaziz, who cites the establishment of factories for the American company “Tesla” and factories for the production of “iPhone” phones in China..
Features of this strategy, as monitored:
- Giving foreigners financial guarantees and advantages that guarantee them financial stability in China, such as exemption from taxes and providing services to factories at cheap prices..
- It provided them with huge and diversified supply chains.
- Preparing its citizens to become a huge economic and purchasing force that attracts investors.
- The currency difference between the dollar and the yuan and labor licenses.
#China #awaits #economic #achievement #history