Why pessimists are wrong about Chinese economy

STILL IDEAL INVESTMENT DESTINATION

First, all that is needed is a simple review of the hard data and interviews with business insiders to avoid the absurd belief that foreign capital is leaving China.

In the first four months, foreign direct investment (FDI) into the Chinese mainland, in actual use, expanded 26.1 percent year on year to 74.47 billion U.S. dollars. The country saw 185 newly-added major projects during the period, each with foreign investment of over 100 million dollars.

These figures again demonstrate that China remains one of the preferred destinations for global investors.

John Ross, former director of Economic and Business Policy of London, has refuted the view calling on foreign companies to leave or minimize investment in China, stressing the most important thing is to examine the facts.

As for the balance between COVID-19 controls and economic development, Ross said, "China dealt with it quite successfully and this therefore helps its economy to rebound quickly," highlighting "The results show that because the economy grew very quickly, this makes it much more attractive to FDI."

A recent report released by the American Chamber of Commerce in South China has indicated that more than 70 percent of the assessed companies have reinvestment plans in China for 2022, and 58 percent consider their overall return on investment in China to be higher than in other places.

In fact, despite temporary fluctuation facing the Chinese economy, several global investment banks, such as Goldman Sachs Group and JP Morgan Chase, still earmarked Shanghai as a target for major investment in the coming years, the Financial Times reported.

Clearly, far-sighted investors believe that short-term setbacks in the Chinese economy won't derail business growth in the long run.

Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva speaks during a virtual press conference in Washington D.C., the United States, April 20, 2022. (Cory Hancock/IMF/Handout via Xinhua)