China’s constantly improving business environment is boosting its attractiveness among multinational corporations, which is reflected by the increasing number of MNCs planning to expand their presence in the world’s second-largest economy, trade promotion officials say. According to a recent report issued by the China Council for the Promotion of International Trade, among 400 foreign companies it polled in the second quarter operating in China, the number that plan to increase investment by 20 per cent rose 6.73 percentage points over the first quarter.
Meanwhile, 15 per cent of them said they plan to increase their investment in China this year. Nearly half of the companies expect their profit margins to increase in the next five years, with businesses from the United States being the most optimistic ones about future operations in China. Over 40 per cent of the polled US companies believe the potential for the Chinese market’s growth this year is good and its attractiveness is on the rise, according to the report.
Among the surveyed companies, 43 per cent were from developed economies, such as the US and Europe. Despite the constantly changing international situation, the world’s second-largest economy remains a widely acknowledged investment hot spot, CCPIT said. “Foreign enterprises were overall satisfied with China’s business environment during the survey period.
They said they remain bullish on the Chinese market and their confidence in expanding investment.