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Chen Jian, Deputy Minister of the Ministry of Commerce (MOFCOM) recently expressed that China will offer better development space and better legal protection, policy support, market environment and growth opportunities to multinational companies.
“The drastic change of the world’s economic and financial situation brings some difficulties to development of Chinese economy without doubt, but China still has the advantage of keeping economy growing rapidly and steadily” said Chen Jian at the 2nd International CEO Roundtable Conference. Chen expressed that as financial crisis continuously worsens, it is hard for the global investors to recover their confidence in a short term. It was expected that flow of foreign direct investment in 2008 will fall 10% to 30%, but in the long run, the major trend of globalization won’t reverse and international process of multinational companies will continue.
The latest data from MOFCOM showed that in the first 10 months this year, China actually utilizing foreign capital stood at USD81.096b, up by 35.06% year-on-year, with growth rate slowing down 3.84 percentage points compared with the first 9 months. In the current month of October, China actually utilizing foreign capital amounted to USD6.722b, down 2.02% year-on-year, so this is the first single-month negative growth this year.
Chen said that though financial crisis brings difficulty to investment cooperation of multinational companies, it simultaneously speeds up the industrial reconstruction including automobile and finance industries to possibly create new investment opportunities to facilitate larger-scale cross-border M&A.