Foreign investors anticipate deeper reforms in China

Further reforms and opening up to provide a more favorable business environment for foreign investment and businesses in China are highly anticipated, leaders of multiple foreign chambers of commerce in China and foreign diplomats said at a forum on Monday in Beijing.

"The more we reform and open up our economies, the better it is for global prosperity," said Geraldine McCafferty, deputy head of mission, the British embassy in Beijing.

During the 2023 China International Fair for Trade in Services, the forum was hosted by the "two zones" (Integrated National Demonstration Zone for Opening Up the Service Sector and China (Beijing) Pilot Free Trade Zone), and the Center for China and Globalization – a think tank in China.

"The UK does not believe in the narrative of decoupling. We think that trade is a good thing," McCafferty said.

The United Family Healthcare entered Beijing in the 1990s to meet the medical needs of foreign residents in China. Roberta Lipson, founder of the medical facility and vice-chair of AmCham China, said friendly policies have made it possible to attract top medical professionals and health care talents from the United States and Europe.

"It's because of the support we've gotten from the government that we've had the confidence to continue to invest in Beijing," she said.

The 24 measures to attract foreign capitals issued by the State Council last month have attracted great attention from foreigner investors. Several speakers at the forum mentioned the policy, which covers areas such as fair competition, tax incentives, cross-border data transmission, and research and development support, and expressed hopes for its effective implementation.

Denis Simon, president of the Alliance of Global Talent Organizations, said he had a chance to work with over 200 multinational companies doing business in China and from his experience, "predictability, consistency, and directionality" of policies are of utmost important for the firms to make their investing decisions, which can dispel concerns and boost confidence, he said.

Jens Hildebrandt, executive director of the German Chamber of Commerce in China, said, "making foreigners more welcome, making more easier for payments, registrations, hotels, etc. are also essential."

The number of tourists and business travelers have yet to return to the pre-pandemic levels, "giving rise to an increasing gap in our perception towards each other", said Onodera Osamu, director-general for Beijing Office and chief representative for North East Asia, the Japan External Trade Organization. "This is not very good," he said.

"Rebuilding trust is the first point needed at the moment, that needs supply- but also demand-side focus policies, strengthening market mechanisms and private enterprises, and pushing forward with reform and opening up," Hildebrandt said.