China welcomes the pouring in of foreign direct investments despite slowdown in growth. (Photo : Wikipedia)
Despite experiencing a growth decrease in China's economy, foreign investors did not stop pouring capital into the world’s most populous nation.
For 2014, China’s economic growth has slowed down to 7.4 percent from 2013’s 7.7 percent. However, the statistic is still a figure to envy for other countries.
China remains to be a global production powerhouse because of its relatively cheap labor costs. Coupled with political stability and rising infrastructure industry, the country steadily has the confidence of foreign investing firms.
The increasing portion of the upper economic strata in China’s domestic market has also helped in earning the attention of various companies who want to experience the nation’s economic prowess.
A first since the early 2000, China has grabbed the lead over the economic giant United States for being the top choice for foreign direct investors.
According to the majority of these firms, China’s advantage over the U.S includes competitive manufacturing base and billion-strong prospective customer populace.
Although there are some rising competitors in terms of low-cost manufacturing strategy, China’s booming high-end commodity production gives the country an edge against other FDI-friendly economic environments.
Furthermore, China’s prime sectors’ strategic location is a plus for foreign investors. A rare set-up, the country’s clusters of raw materials and skilled labor, designers and factories, and suppliers and logistics are found in one area.
As Chinese government officials are intensifying their campaign against red tape, the rising economic superpower continues to offer huge opportunities for foreign companies.
Conversely, Chinese authorities are ensuring that they are doing all efforts to maintain a just business environment for investing firms, both local and foreign.
