Page 10 - 2018 Special Report on the State of Business in South China
P. 10
areas with the highest populations and free trade zone (FTZ) Opening-up and Actively Attracting Foreign Direct Investment
opportunities. Among all the cities in Mainland China, the most (FDI)”, commonly known as Ten Measures for Attracting FDI.
favored investment destinations by companies surveyed are Guangdong government is showing a more open approach
still China’s top-tier cities—Beijing, Shanghai, Guangzhou, and toward foreign investment, particularly in attracting high-level
Shenzhen. Interestingly, this year Guangzhou ranked as the talent. We agree it is a step in the right direction, but we reserve
most popular investment city within a list of 44 cities in Mainland our full confidence until the new polices are implemented.
China, followed by Shenzhen and Shanghai, and finally Beijing.
Guangzhou and Shenzhen have worked hard to achieve the Success had already begun on the national level. During
coveted top spots in our study for the first time. A couple of cities the second half of 2017, the central government attempted
located in the area, however, have sunk to the bottom of the list to make foreign investors feel more comfortable by telling
because they are focused on taking land that rightfully belongs ministries to open up more sections of the economy to foreign
to foreign-invested enterprises. These cities are attempting to investment. Trade tensions between Washington and Beijing ran
make quick profits from real estate development rather than high in 2017, but American businesses still considered China to
focusing on the future by keeping those enterprises and their be a reliable source of profit growth. These businesses benefited
newly developed technologies. from a Chinese economy that is growing at almost 7%—several
times the rate of U.S. expansion—a Chinese housing boom, and
Meanwhile, foreign-invested businesses in South China are a slide in the U.S. dollar.
focusing more on the future. More than half of the respondents
have chosen South China mainly because of the potential for
market growth, and most have strong confidence that this Still, the playing field is not equal. Many U.S. cash-flush
growth will continue. Furthermore, approximately 10% of the investors in China claim they have fewer good opportunities to
respondents reported that in addition to providing services or buy Chinese companies. On the contrary, Chinese investment
products for the domestic market, their development in South has infiltrated the United States, a country that also provides
China has also concentrated on establishing or expanding ample opportunity for foreign investors. Ninety-seven percent of
regional bases in South China to support even further expansion. Chinese investment in the U.S. was made through acquisitions.
There was a remarkable increase in the number of respondents Unfortunately, American companies do not have the same
interested in setting up new offices or facilities in the FTZs in opportunities in China.
South China, of which more than 55.2% of respondents indicated
that they favored Guangdong Nansha FTZ, followed by its Fair play is needed. It is becoming more crucial for the
counterparts in Qianhai and Hengqin. The study also shows chambers of commerce to continue promoting the value and
that the 2018 budgeted reinvestment in China by members of mutual benefits that foreign investment and foreign companies
AmCham South China is expected to rise by nearly 12% with an bring to China. Noting the importance of FTZs in his opening
estimated reinvestment of US$14 billion to expand operations report of the 19th National Congress of the Communist Party of
and to capture new and larger market shares. China, President Xi Jinping said the government will explore the
opening of free trade ports, and even more importantly that all
businesses registered in China will be treated equally. We applaud
American investments help China by creating jobs and President Xi’s words and thoughts. China wants continual and
other economic advances; however, some foreign-invested sustainable growth, but the country cannot do it alone. China
enterprises believe they may have become a victim to their needs continued foreign investment as much as our members
own success. China’s growing economic nationalism maintains need China. We are willing to do our part so that we can all profit
that foreign companies are no longer necessary for continued together. China needs to let us do it by heeding the words of
domestic prosperity. Even though they are a primary driver of President Xi.
the Chinese economy, many foreign enterprises have declared
over the past few studies that some governmental entities were With best regards,
increasingly stacking the cards against them.
Dr. Harley Seyedin
The good news this year is that foreign companies are President, American Chamber of Commerce in South China
more optimistic. Both the central and local governments are Vice Chairman, U.S.-China Economic and Trade Policy, APCAC
giving signals that they will open up the market and welcome Winner of the 2017 Oslo Business for Peace Award
more foreign investment. So far, Guangdong government is the Awarded by the Award Committee of Nobel Laureates in Peace & Economics
most responsive with the December 2017 release of “Policies
and Measures of Guangdong Province on Further Expanding
10
opportunities. Among all the cities in Mainland China, the most (FDI)”, commonly known as Ten Measures for Attracting FDI.
favored investment destinations by companies surveyed are Guangdong government is showing a more open approach
still China’s top-tier cities—Beijing, Shanghai, Guangzhou, and toward foreign investment, particularly in attracting high-level
Shenzhen. Interestingly, this year Guangzhou ranked as the talent. We agree it is a step in the right direction, but we reserve
most popular investment city within a list of 44 cities in Mainland our full confidence until the new polices are implemented.
China, followed by Shenzhen and Shanghai, and finally Beijing.
Guangzhou and Shenzhen have worked hard to achieve the Success had already begun on the national level. During
coveted top spots in our study for the first time. A couple of cities the second half of 2017, the central government attempted
located in the area, however, have sunk to the bottom of the list to make foreign investors feel more comfortable by telling
because they are focused on taking land that rightfully belongs ministries to open up more sections of the economy to foreign
to foreign-invested enterprises. These cities are attempting to investment. Trade tensions between Washington and Beijing ran
make quick profits from real estate development rather than high in 2017, but American businesses still considered China to
focusing on the future by keeping those enterprises and their be a reliable source of profit growth. These businesses benefited
newly developed technologies. from a Chinese economy that is growing at almost 7%—several
times the rate of U.S. expansion—a Chinese housing boom, and
Meanwhile, foreign-invested businesses in South China are a slide in the U.S. dollar.
focusing more on the future. More than half of the respondents
have chosen South China mainly because of the potential for
market growth, and most have strong confidence that this Still, the playing field is not equal. Many U.S. cash-flush
growth will continue. Furthermore, approximately 10% of the investors in China claim they have fewer good opportunities to
respondents reported that in addition to providing services or buy Chinese companies. On the contrary, Chinese investment
products for the domestic market, their development in South has infiltrated the United States, a country that also provides
China has also concentrated on establishing or expanding ample opportunity for foreign investors. Ninety-seven percent of
regional bases in South China to support even further expansion. Chinese investment in the U.S. was made through acquisitions.
There was a remarkable increase in the number of respondents Unfortunately, American companies do not have the same
interested in setting up new offices or facilities in the FTZs in opportunities in China.
South China, of which more than 55.2% of respondents indicated
that they favored Guangdong Nansha FTZ, followed by its Fair play is needed. It is becoming more crucial for the
counterparts in Qianhai and Hengqin. The study also shows chambers of commerce to continue promoting the value and
that the 2018 budgeted reinvestment in China by members of mutual benefits that foreign investment and foreign companies
AmCham South China is expected to rise by nearly 12% with an bring to China. Noting the importance of FTZs in his opening
estimated reinvestment of US$14 billion to expand operations report of the 19th National Congress of the Communist Party of
and to capture new and larger market shares. China, President Xi Jinping said the government will explore the
opening of free trade ports, and even more importantly that all
businesses registered in China will be treated equally. We applaud
American investments help China by creating jobs and President Xi’s words and thoughts. China wants continual and
other economic advances; however, some foreign-invested sustainable growth, but the country cannot do it alone. China
enterprises believe they may have become a victim to their needs continued foreign investment as much as our members
own success. China’s growing economic nationalism maintains need China. We are willing to do our part so that we can all profit
that foreign companies are no longer necessary for continued together. China needs to let us do it by heeding the words of
domestic prosperity. Even though they are a primary driver of President Xi.
the Chinese economy, many foreign enterprises have declared
over the past few studies that some governmental entities were With best regards,
increasingly stacking the cards against them.
Dr. Harley Seyedin
The good news this year is that foreign companies are President, American Chamber of Commerce in South China
more optimistic. Both the central and local governments are Vice Chairman, U.S.-China Economic and Trade Policy, APCAC
giving signals that they will open up the market and welcome Winner of the 2017 Oslo Business for Peace Award
more foreign investment. So far, Guangdong government is the Awarded by the Award Committee of Nobel Laureates in Peace & Economics
most responsive with the December 2017 release of “Policies
and Measures of Guangdong Province on Further Expanding
10
