CHINA TOPIX

11/02/2024 01:21:07 pm

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China is Confident About its 'Investment Climate' and Potential for Economic Growth

China's Economic Climate not Worsening

(Photo : Reuters/David Gray ) China's Foreign Ministry spokesman Hong Lei says that China's policy of using "foreign capital and protecting foreign enterprises' rights" will continue.

There is a growing global concern about China's slowing economic growth rate. A recent U.S. report claims that the investment climate in the world's second-largest economy is worsening. China, however, remains confident about creating a positive climate for foreign investors.  

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China remains committed to the policy of "using foreign capital and protecting foreign enterprises' rights," Chinese foreign ministry spokesperson Hong Lei is quoted as saying by Xinhua.  

The report noted many investors are planning to, or already have, closed down some departments in China due to multiple factors, including rising labor costs, network supervision and anti-monopoly investigations.

The country, however, is still among the top three investment destinations, according to Xinhua. It reported that for 60 percent of the respondents, China was one of the three top investment countries, while for nearly 25 percent respondents, it remains a top priority. The report also noted that a majority of the enterprises, nearly 60 percent, continue to earn profits.

Meanwhile, a report released on Tuesday observed that China's economy saw its slowest growth rate in 25 years in 2015. The country's gross domestic product (GDP) reportedly grew by 6.9 percent year-on-year last year, which is at its weakest pace in a quarter of a century.   

The Guardian reported that because of the slowing economy, China faces a series of challenges: "weak exports, high debt level and slowing investment."

Hong tried to allay such fears, saying that his country's economy has "great potential" for growth, and it is willing to "share the benefits from its development with the rest of the world."

The International Monetary Fund (IMF) has projected that China's economy will see a growth rate of 6.3 percent in 2016. 

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