Why is China an attractive destination for foreign investors?

China’s attractiveness as a foreign direct investment (FDI) destination relies not only on its large domestic market but also on its resources availability, accessible and skilled workforce and the favorable development of its regulatory policies.

Let’s take a look at the top reasons why China is an attractive destination for foreign investors and the top FDI investment destinations in the country.

A continuous effort for improvement

China has made continuous efforts to open itself to regional and international trade and to change its outdated foreign investment policies. The measures included the simplification of the company formation process in China as well as the reduction of the existing restrictive measures. What’s more, the country has been working on opening up more of its business fields to foreign investors.

Foreign investments in China have been taking into account the current evolution of the country as well as the needs for local development. Chinese officials have already highlighted the importance of providing new opportunities for foreign investors and the fact that the country is encouraging innovation and entrepreneurship. The goal of the authorities is to maintain a transparent market, both for foreign companies and for local ones.

A more attractive local business climate

With its efforts to improve the existing FDI policies, China has also made an important step towards making its business climate more attractive to investors around the world. The present growth opportunities are numerous as the country is also shifting towards promoting industries such as new technologies and healthcare.

China can capitalize on its most important traits, those that make it a global power in ascension: the market size, a productive workforce, important resources and an ever-developing infrastructure and business climate.

As China continues to foster a prosperous economy, it is very likely that foreign direct investments will attract one another. High-end industries as well as more traditional business sectors such as manufacturing will continue to evolve and mature.