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Chinese enterprises are expected to achieve more stable and
longer-term development in overseas markets this year, utilizing
opportunities brought by the recent breakthroughs in multilateral
cooperation and overseas investment agreements, according to experts. Though COVID-19 may continue to have an impact on global cross-border
investment in the short term, more cooperation as well as competition
are possible among businesses from China and the United States in the
area of digital economy this year, according to a report from EY, a
global professional services firm specializing in assurance, tax and
management consulting. Chinese outbound investors are expected to be active in Europe,
particularly in sectors like renewable energy and digital economy, the
EY report said. The firm's overseas investment outlook is based on what is widely
regarded as the biggest achievement last year－China-fostered
multilateral international cooperation. The country reached major breakthroughs with Asia-Pacific and European Union economies. The signing of the Regional Comprehensive Economic Partnership agreement created the world's largest free trade zone. The conclusion of negotiations for the Comprehensive Agreement on
Investment as per schedule will pave the way for deeper economic and
trade cooperation between China and EU countries. That is good news for EU-bound Chinese investors as they are likely
to benefit from a set of consistent investment rules under the
agreement, which can lower investment costs as well as trade barriers
and enhance the local business environment, said Loletta Chow, global
leader of the EY China Overseas Investment Network, on Monday. "It is believed that these developments have strengthened confidence
in, and motivation for, the recovery of the world economy," she said. Chow said she expected Chinese enterprises to actively participate in
international cooperation and global business competition in the
future, which will contribute to a healthier and more sustainable
development in the internal circulation of China's new dual-circulation
development pattern. According to data from the Ministry of Commerce, the country's
overall overseas direct investment remained steady with an increase of
3.3 percent in US dollar terms year-on-year. Non-financial ODI was $110.2 billion, down 0.4 percent year-on-year,
official data showed. The investments were mainly in areas like leasing
and business services, wholesale and retail, scientific research,
technical services, electricity production, and power supply. Foreign direct investment is expected to continually increase this
year, after the National Development and Reform Commission, China's top
economic regulator, and the Ministry of Commerce rolled out the Catalog
of Industries for Encouraging Foreign Investment (2020 Version), which
took effect on Jan 27, analysts said. The revision of the catalog is intended to lure foreign investment in
three main areas: advanced manufacturing industries;
production-oriented service industries; and regional advanced industries
in China's central, western and northeastern areas, said Alberto
Vettoretti, a managing partner of Dezan Shira & Associates, a
multi-disciplinary professional services firm.
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