What is the truth behind the withdrawal of foreign capital from China

Citizen Precision (Guangzhou) Co., Ltd. was declared closed, Microsoft's decision to shut down the original Nokia mobile phone production line in China ... in the face of some of these phenomena, some observers exaggerate the prospect of a "massive withdrawal of foreign capital from China", with the subtext that China's investment climate is losing its long charm. So what is the truth behind the phenomenon?

Foreign companies shut down factories in China "in general a limited number"

The latest statistics show: The first two months of this year, the national new 3,831 foreign investment enterprises, an increase of 38.6%, the actual use of foreign capital of 138.19 billion yuan, an increase of 17%. Gao, Minister of Commerce, said at the annual meeting of the China Development Forum that in 2014, with a 8% decline in global FDI, China used foreign capital to "reverse the trend" and grew 1.7% to become the first in the world for the first time with 119.6 billion dollars of foreign capital.

Of course, Danyang, a spokesman for the Ministry of Commerce, recently admitted that a handful of multinationals were adjusting to China's operations, such as the rising costs of China's labor force, slowing economic growth and the mismanagement of some foreign companies, while the number of closed factories was limited in general. In fact, "the overall investment of Japanese companies in China is a growing trend, not the opposite," Danyang said.

Although the topic of "foreign capital withdrawal from China" is very eye-catching, Qutauqui, president of the Chinese Robotics Industry Alliance and Siasun Robotics company, feels the pressure of international giants to occupy China. "China has become the world's largest industrial robot market, the four major international robot giants are actively layout China, competition into the white-hot." "he said. China has become the hottest market for global robotics and smart equipment companies, and it has become a global consensus to share the Chinese feast.

"How can aspiring multinationals ignore the Chinese market?" ”

"We will continue to increase our investment in China, sales in China will expand 10 times times over the next 5 years, thus exceeding South Korea's headquarters, Parker, president of South Korea's CJ Group, who has worked and lived in China for 30 years, said that as the largest food conglomerate in Korea, CJ has 87 subsidiaries in China, 19 processing plants, 36 offices, more than 13,000 employees, "China is already the world's second largest economy, which aspiring multinational companies will ignore the Chinese market?" ”

Xinyu, a researcher at the Institute of International Trade and Economic Cooperation of the Ministry of Commerce, said that the main reason why a handful of Western multinationals were shutting down their factories in China was not the deterioration of the Chinese business environment, but the competitiveness of these companies, which was unsustainable or had to be transformed relative to the decline of domestic and third He cited, for example, the embarrassed sharp contraction front, broken wrist to survive, a breath out of Mexico, Southeast Asia, Australia and other markets. Even so, sharp still retains the production chain relationship with China.

"Those foreign companies that have left China are low-cost-oriented, and they are rushing to China's cheap labor," he said. Wang, another researcher at the Institute of International Trade and economic cooperation, said big companies are thinking about the redistribution of global value chains. If China's investment environment improves further, it could attract more high-end and better investment.