Foreign companies that have long been a thriving part of China's
economy and strong supporters of global supply chains are finding fresh
momentum from the improved market access in the nation and the ongoing
efforts to create a more transparent and free business environment.
At his speech delivered during the 2020 China International Fair for
Trade in Services earlier this month, President Xi Jinping said that a
review of human history shows that the world economy thrives in openness
and withers in seclusion, and that China will stay committed to further
Measures mentioned by Xi include the establishment of a sound
negative list management system in cross-border services trade, the
advancement of constructing open platforms for piloting innovative
development of trade in services, the easing of market access in the
service sector, and the active expansion of quality services imports.
Xi also stressed on raising the level of opening up in an all-around
manner, and building higher-level new institutions for the open economy,
while chairing a symposium on economic and social work in Beijing in
Many opportunities are also arising from China's new policy measures
introduced this year to stimulate consumption, attract global capital,
boost both goods and services trade to mitigate the COVID-19 epidemic
effect and support its early economic recovery.
Foreign direct investment in the Chinese mainland grew by 18.7
percent on a yearly basis to 84.13 billion yuan ($12.3 billion) in
August, the fifth successive month of positive growth, according to the
latest data released by the Ministry of Commerce.
FDI inflows amounted to 619.78 billion yuan in the first eight months, up 2.6 percent year-on-year.
In order to assess the effect of many challenges facing businesses
going forward, the American Chamber of Commerce in South China conducted
a comprehensive study involving 172 companies from Aug 28 to Sept 8.
The survey found that about 90 percent of the respondents, regardless
of origin, had a positive outlook for the second half of this year.
These companies, including those from Germany, Belgium, Switzerland,
Spain, the United Kingdom, France, Japan and the United States displayed
a strong willingness to continue to grow and expand in China.
Over 78 percent of companies said they no longer face difficulties
with the supply chain, up 46 percent since March 12, when the chamber
released its report on the effect of COVID-19 on the supply chain in
Global business leaders said that building on the effective
containment of the pandemic, China has rigorously rolled out a string of
measures to stabilize foreign trade and investment. China, with its
excellent economic resilience and potential, will remain an attractive
investment destination for global investors, said the survey.
Alfonso Alba, country pision head for Bayer Crop Science in China,
said the company is optimistic about the good business environment and
innumerable market opportunities in China, one of the most important
global markets for the company.
"We appreciate China for its excellent supply chain management and
good economic recovery during the pandemic, which has provided strong
support for us to conduct regular business in the Chinese market and
ensure the supply of products and services," he said.
Alba said Bayer has a long-term development strategy and market
commitment in China, and will continue to invest in innovation,
sustainability and digital transformation. China's agriculture has
entered a stage of high-quality development and his company will keep
pace with this trend, he said.
The German company to date boasts about 80 plant protection products
in five categories that can prevent and control major diseases, pests
and weeds. It also develops and markets conventional vegetable and corn
seeds for Chinese farmers through its wholly-owned subsidiary and a
In terms of new market opportunities, he said Bayer regards digital
technology as one of the key areas. Digital farming plays an essential
role in the high-quality development of agriculture in China, and it is
also the global innovation direction of Bayer Crop Science.
Woody Guo, president of Herbalife Nutrition China and senior
vice-president of the US-based nutrition company Herbalife Nutrition,
said the company enjoyed double-digit growth in sales on a yearly basis
in China during the first and second quarters of this year despite
COVID-19, thanks to the growing demand for high-quality health products
The company has accelerated its new product launches in China since
the second half of 2019, and expects to double the same in the next five
Its first product innovation center globally, the Herbalife Nutrition
Product Innovation Center, will be launched by end of the year in
Shanghai. With investments totaling 100 million yuan, the center will
enable the company to rapidly transform the cutting-edge scientific and
technological achievements in nutrition science into nutritional
products, Guo said.
Wilson Ho, vice-president and managing director of SAS China, part of
the US-based analytics firm, said the company has always been
optimistic about the Chinese market and has full confidence in China's
economic development prospects.
"SAS mainly serves analytics applications in various industries,
especially as we are passing through a special phase this year. However,
business data show that the pandemic had little effect on SAS' business
in China in the first half of the year. In fact our business in China
managed to see some improvements," he said.