China’s robust economy to attract more foreign investment, talents, economist says
China’s robust economy will attract greater foreign investment inflows and foreign talents into China, Dan Wang, Chief Economist at Heng Seng Bank (China) has said.
“China’s main attraction for foreign investment is its strong economic performance,” Wang wrote in a recent opinion piece published on the Financial Times, noting that China’s performance is in stark contrast to the rest of the world economy.
“There is no doubt that its GDP growth will exceed the official target of more than 6 percent this year. We expect full-year growth might exceed 8 percent,” she said.
Statistics show foreign investment has not left China and China’s policy of opening its domestic market hasn’t been reversed either, according to Wang.
Global foreign direct investment (FDI) declined in 2020, but China’s FDI continued to grow. In 2020, China’s FDI accounted for more than one-fifth of the world’s total, doubling its pre-pandemic share, and this trend will continue this year, she said.
Concerns about China’s future growth mainly stem from a slowdown in property sector. However, investments in manufacturing will partly offset the repercussions, Wang said.
China’s GDP grew 4.9 percent year-on-year in the third quarter, slower than its growth of 18.3 percent in the first quarter and 7.9 percent in the second quarter. In the first three quarters, the country logged a 9.8 percent GDP expansion, well above its annual growth target of over 6 percent, official data shows.