European investor confidence drops to record low, China immediately launches series of measures to "win hearts"

In the context of foreign investment showing signs of decline, especially the loss of confidence from European investors, the Chinese government is making efforts to loosen and open up some sectors to bring back international capital flows and stabilize growth.

The annual report of the European Chamber of Commerce in China shows that the confidence of many member businesses is declining. (Source: SCMP)

The annual report of the European Chamber of Commerce in China just released shows that many investors in this bloc are facing the reality that the problems they encounter in the world's second largest economy are "inherent characteristics and require a strategic rethink".

Profit margins in China are at or below the global average for 71% of the Chamber of Commerce members, and about 44% of members are pessimistic about future profits - the highest level since the report began in 2012, the report said.

“Why China?” European Chamber of Commerce President Jens Eskelund asked at a press conference last week, noting that the Asian economy was “not doing well” and that it was becoming “more and more difficult” for European businesses to make money in the billion-people market.

The report of the European Chamber of Commerce in China also pointed out other factors that significantly affect the business confidence of European investors such as: overcapacity, market access, some regulatory barriers...

In the first seven months of the year, foreign direct investment (FDI) into China fell nearly 30 percent year-on-year to 539.5 billion yuan ($76.1 billion), according to data from the country's Ministry of Commerce.

In its latest efforts to bring back foreign investment and stabilize growth, Beijing has said it will continue to ease market access restrictions on foreign companies, including allowing the establishment of wholly foreign-owned hospitals in some major cities and allowing foreign investors to provide human stem cell and gene therapy services in pilot free-trade zones.

The number of sectors with maximum restrictions on foreign investment has been cut from 31 to 29. In addition, restrictions on foreign investment access in China's manufacturing sector will also be lifted from November 1.

Earlier this year, Asia's number one economy opened up its services sector in major cities with wider market access for foreign investment in tourism, culture and telecommunications.

To boost domestic tourism and regain its attractiveness to foreign investors, China has extended visa exemptions to some European countries this year.

Eleven of the 27 EU countries are now visa-free from Beijing, and this “has really made a difference to the operations of European businesses in the country,” European Chamber of Commerce President Jens Eskelund stressed.

In the past, getting a Chinese visa took a long time, and executives had to plan one to three months in advance, Eskelund said. “Now they can decide today, I want to go to China next week,” he said.

The president of the European Chamber of Commerce in China also recommended that to continue attracting more investors from the bloc, Beijing should continue to expand visa exemptions for the 27 EU countries.

Source: https://baoquocte.vn/niem-tin-cua-nha-dau-tu-chau-au-giam-ky-luc-trung-quoc-ngay-lap-tuc-tung-loat-bien-phap-lay-long-285911.html