—FDI Inflow Rises for Eight Straight Months

The Chinese Government has been focusing on stable macroeconomic policies, exerting itself to share more reform dividends, making efforts to improve the business environment and has achieved steady economic growth since the new administration took office this March. Reports in many ways show that investors maintain confidence in China.

Foreign direct investment (FDI) into the Chinese mainland has maintained a relatively steady and gradually rises this year. FDI inflow has continued a year-on-year jump since February. It is expected that China's FDI inflow would remain steady throughout the whole year.

Currently, there are many uncertain and unstable factors pertaining to global economic recovery and China's economic growth faces many challenges. But China still has striking advantages in attracting foreign investment, while investor confidence in the country remains unchanged.

The 2013 Foreign Direct Investment Confidence Index conducted by A.T. Kearney indicates that as the world's most populous consumer market, China continues to draw multinational firms attracted to its rising incomes, urban migration, and increased demand for consumer goods.

A survey recently conducted by the Boston Consulting Group (BCG) shows that 83 percent of multinational firms consider China as an important market. Despite China's slowdown in economic growth, it will remain the largest emerging market for multinational corporates around the world.

The US-China Business Council (USCBC) released its 2013 China Business Environment Survey Results in October, which shows that despite optimism is influenced by rising costs and other challenges of the Chinese market, U.S. firms are still confident. Besides, more than 90 percent of respondents said their businesses in China are profitable.

The Chinese Government has been focusing on stable macroeconomic policies, exerting itself to share more reform dividends and making efforts to improve the business environment since the new administration took office this year. It has also issued a series of policies that help further facilitate investment. For example, the government has streamlined administrative procedures and delegated powers to lower levels, reformed regulations on registered capital, and simplified industrial and commercial registration procedures. Such measures are beneficial to foreign investors to do business in China. At present, the Ministry of Commerce is researching how to deepen reform on administrating foreign investment in a bid to build an impartial and transparent environment for all businesses.

With the complicated and volatile global economic situation, China's economic growth faces mounting pressure and challenges, including decreasing overseas market demand and rising costs of labor, which have an impact on the local investment environment. Furthermore, there are some problems with China's FDI, which need to be solved. Therefore, the country should implement more active opening-up strategies, adhere to expanding to utilize foreign investment and further improve the investment environment as well as enhance comprehensive advantages to attract FDI and increase overall benefits.