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Foreign enterprises give China vote of confidence: China Daily editorial

China Daily | Updated: 2019-05-15 21:05
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The United States has claimed that China will be hurt very badly if the two countries do not reach a trade deal, because the tariffs the US has imposed will force companies to move production to other countries.

But as China's Foreign Ministry spokesman said, the US doesn't need to worry on China's behalf.

Over the four decades of reform and opening-up, China's foreign investment environment has continually improved, and China has been one of the most popular destinations for global investment for many consecutive years, reaching a record high in December last year.

Tesla CEO Elon Musk attends the Tesla Shanghai Gigafactory groundbreaking ceremony in Shanghai, China, Jan 7, 2019. [Photo by Zhang Hengwei/China News Service]

Although the US president has claimed that all that companies have to do is to build or make their products in the US and there will be no tariff whatsoever, that has not proved much of an enticement to US companies such as Exxon Mobil Corp, which despite the trade squabble and possibility of further tariff hikes still decided to set up a wholly-owned large-scale petrochemicals project in China.

Likewise, in January, Tesla officially started construction of a manufacturing plant in Shanghai, its first overseas, and Cargill Inc, the US-based agricultural conglomerate, decided to expand its core processing capacity in China's Jilin province in April.

Despite the dominance of US companies, the US administration seems to have chosen to ignore the fact that when choosing investment destinations and business partners, enterprises make decisions based on what is best for them.

US and other foreign enterprises in China continue to give China's business environment a vote of confidence as they appreciate it is still the best place for them to be.

And the same will be true for foreign enterprises operating in fields where foreign investment was previously prohibited as the country continues to cut its negative list for foreign investment.

Likewise, the introduction of the new Foreign Investment Law, which will come into effect on Jan 1, 2020, will encourage more investments in China, as it will build a greater confidence in a stable, transparent, predictable and fair environment for foreign investments.

Meanwhile, China will continue to expand its opening-up and press ahead with reforms to streamline administration and delegate power, and improve its business environment, which has risen significantly in the international rankings.

Instead of pinning futile hopes on tariffs forcing companies out of China, the US should appreciate the reality of the situation, and return to the right track of negotiating in good faith to reach a mutually beneficial agreement on the basis of mutual respect.

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