Foreign investors see China as an attractive location for manufacturing because of its large and growing consumer ready market for the manufactured products.
Policies in late December have rekindled foreign investors’ enthusiasm, prompting many to expand their presence in the world’s factories.
New data from the Ministry of Commerce show according to information released earlier this week, the amount of actual used foreign direct investments in the mainland have maintained a steady near 15 percent growth year on year with investments in the manufacturing sector up over 40 percent.
At the end of last year, Swiss-based packaging solutions provider Amcore PLC opened a global plant in South China’s Guang Dong Province with an investment of over 140 million US dollars (Ksh17,864 billion).
Last month in Shanghai French multinational, Schneider Electric launched a secure power innovation lab dedicated to global r and d in power supply and energy storage. And not far from Shanghai.
For instance, the Chinese government has established free trade zones, such as the Shanghai Free Trade Zone, which offer tax breaks and other incentives to foreign companies that set up operations in these areas.
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The investment has also been bolstered by the country’s Belt and Road Initiative, which is a massive infrastructure development project that aims to connect China with Europe, Africa, and other regions.
This initiative has created new opportunities for foreign companies to invest in China’s manufacturing sector by providing access to new markets and supply chains.
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China is expected to continue growing in the coming years. While there are risks associated with investing in China, such as political and economic uncertainty, many foreign companies still see the benefits of investing in this large and growing market.
