Page 48 - 2018 White Paper on the Business Environment in China
P. 48
8 White Paper on the Business Environment in China
The third implication is that far from profiting Figure 1. Value Added Impact of All Foreign Affiliates
disproportionately from China, the available information on China’s Economy, % of GDP
indicates that China is a less profitable market on
average than other markets for U.S. affiliates. This is one 40% Investment FIEs Secondary FIEs Tertiary 33%
reason that some U.S. and other foreign companies are 35%
rethinking their positions in China. 30%
25%
The fourth implication is that no country, not 20%
even China or the U.S., can develop all the ideas 15%
and innovations necessary to support economic 10%
development in the modern world. The more China
restricts the activities of foreign firms, the more 5%
limits will be placed on its potential prosperity. In 0%
addition, all of China’s major economic initiatives will
be far easier to execute with the participation and 1995
cooperation of foreign investors, including those from 1996
the U.S., than without. 1997
1998
Implications for Other Countries and U.S. 1999
Affiliates Operation in Other Countries 2000
2001
The first implication for host countries other than 2002
China is that enormous benefits can be obtained 2003
through FDI and the presence of FIEs/FAs in a host 2004
country. In addition, these benefits are usually 2005
dramatically understated due to incomplete analysis. 2006
2007
The second implication for other host countries is 2008
that the tools exist that allow for a much more complete 2009
assessment of the impact of FDI and the presence of 2010
foreign companies. Such analysis can be useful both in 2011
policy making and in convincing local constituencies 2012
about the value of foreign investment. 2013
The main implication when it comes to other host Source: Enright, Scott & Associates.
countries for investing companies, source country
governments, and source country business groups is Figure 2. Employment Impact of Foreign Affiliates on
that the tools exist to provide a more detailed picture China, % of Employment
of the benefits they bring to these countries as well and
that these tools can be used to better “make the case” for Source: Enright, Scott & Associates.
the benefits of FDI and foreign companies.
Figure 3. Value Added Impact of All U.S. Foreign
Affiliates on China’s Economy, US$ billion
Source: Enright, Scott & Associates.
48
The third implication is that far from profiting Figure 1. Value Added Impact of All Foreign Affiliates
disproportionately from China, the available information on China’s Economy, % of GDP
indicates that China is a less profitable market on
average than other markets for U.S. affiliates. This is one 40% Investment FIEs Secondary FIEs Tertiary 33%
reason that some U.S. and other foreign companies are 35%
rethinking their positions in China. 30%
25%
The fourth implication is that no country, not 20%
even China or the U.S., can develop all the ideas 15%
and innovations necessary to support economic 10%
development in the modern world. The more China
restricts the activities of foreign firms, the more 5%
limits will be placed on its potential prosperity. In 0%
addition, all of China’s major economic initiatives will
be far easier to execute with the participation and 1995
cooperation of foreign investors, including those from 1996
the U.S., than without. 1997
1998
Implications for Other Countries and U.S. 1999
Affiliates Operation in Other Countries 2000
2001
The first implication for host countries other than 2002
China is that enormous benefits can be obtained 2003
through FDI and the presence of FIEs/FAs in a host 2004
country. In addition, these benefits are usually 2005
dramatically understated due to incomplete analysis. 2006
2007
The second implication for other host countries is 2008
that the tools exist that allow for a much more complete 2009
assessment of the impact of FDI and the presence of 2010
foreign companies. Such analysis can be useful both in 2011
policy making and in convincing local constituencies 2012
about the value of foreign investment. 2013
The main implication when it comes to other host Source: Enright, Scott & Associates.
countries for investing companies, source country
governments, and source country business groups is Figure 2. Employment Impact of Foreign Affiliates on
that the tools exist to provide a more detailed picture China, % of Employment
of the benefits they bring to these countries as well and
that these tools can be used to better “make the case” for Source: Enright, Scott & Associates.
the benefits of FDI and foreign companies.
Figure 3. Value Added Impact of All U.S. Foreign
Affiliates on China’s Economy, US$ billion
Source: Enright, Scott & Associates.
48
