Investment climate strong despite competition

08:45, September 14, 2010      

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By Li Qiaoyi

China's investment environment is not deteriorating, although competition is getting fiercer in some sectors, Ferdinando Beccalli-Falco, president and CEO of General Electric International, said Monday at the Annual Meeting of the New Champions 2010 held in Tianjin, also dubbed the Summer Davos.

Previous reports that Jeffrey R Immelt, global CEO and chairman of GE, had complained about doing business in China were a misunderstanding, Beccalli-Falco noted.

China is developing into a major industrialized country, during the process of which it is natural for some enterprises to face challenges as competition grows fiercer, Beccalli- Falco said.

The cost of labor is on the rise, he said, a natural consequence of development. And China will become the world's largest economy in the future.

China already overtook Japan to become the world's second largest economy in the second quarter, following the US.

But GE emphasizes more on China's increasingly mature market and innovative technology, he said, adding that the company is confident about its growth prospects.

Other foreign firms are noting increasing competition as well.

China has become increasingly important for multinationals (MNCs), with a number of new firms in the market, a development that makes competition more intense, Glenn Jordan, president of the Pacific Group at Coca-Cola, also said.

MNCs should adjust their policies according to the changes in the nation's development, Jordan said.

The government is trying to boost foreign investment into the country by revising the current rules, Liu Yajun, director of the Foreign Investment Department at the Ministry of Commerce (MOFCOM), also said Monday.

China has continued to be the most popular destination for foreign investment among developing countries for 17 years. The country's utilized foreign direct investment (FDI) grew by 29.2 percent from a year earlier to $6.92 billion in July, according to figures from MOFCOM.

From January to July, utilized FDI totaled $58.35 billion, an increase of 20.65 percent compared to the same period last year, MOFCOM said.

Source: Global Times


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