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On November 28th, Strategy Holdings (“Shiju”) successfully held the “Foreign Investment Enterprises Salon” in Shanghai. The event attracted many representatives from CBRE, ED Group, FALUX GROUP, Kajima China, CCIFC, Suzhou Foreign Investment Industrial Park, Asia Solution, Shanghai Mabel Business Consulting Co. Ltd, Plainvim, Euro Merger, Bureau Veritas, Hannover Messe, ZENITH, OCO Global, and the Victorian Government, Australia. The guests had an in-depth discussion on the relocation of existing foreign enterprises and the future development trend of foreign investment in China.
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On the Scene of Salon
In the headquarters of Shiju in Shanghai, we warmly welcomed the guests with exquisite fruits. In a relaxed and pleasant atmosphere, the guests had a lively discussion on two topics: first, the factors to be considered by foreign-invested enterprises for their relocations, and second, the development trend of foreign investment in China in the future.
When discussing the relocation of foreign-invested enterprises, the guests agreed that each enterprise may have quite specific needs and considerations. However, the following aspects are the focus of general attention:
1. Industrial chain advantages: Almost all enterprises put forward their concerns for the integrity of the local industrial chain and the supporting of upstream and downstream enterprises. For example, technological enterprises have a strong demand for high-quality talents, so cities and regions with abundant educational resources and scientific research institutions are preferred.
2. Infrastructures and other basic condi-tions: When enterprises consider their relocations, they will comprehensively assess the local infrastructures, including transportation, logistics, and water and electricity supplies, which usually have great impact on the operational efficiency and cost control of the enterprises. Cost saving is one of the most important considerations for enterprises in their site selection. In addition, convenient public transportation facilities can increase employee job satisfaction and the overall attractiveness of a business.
3. Professional services: Provision of professional services for enterprises is also an important factor in attracting foreign investment. SMEs are particularly in need of support from professional services such as accounting, legal and human resources services.
4. Market potentials: China has huge market potentials and many cities and industrial parks are well-positioned to attract FDI. In particular, coastal port cities, with their favorable geographic locations and well-developed logistics systems, give them an advantage in global competition. From a market perspective, it is critical for local govern-ments and Industrial parks to actively seek their own advantages and oppor-tunities to provide customized services and support to foreign enterprises.
The guests were generally optimistic about the future trend of foreign investment in China. They believed that, despite the current complex and volatile international situations, the Chinese market remained a strong attraction for foreign investments, especially for the following reasons:
1. Policy support: The governments have been increasing their support for foreign-invested enterprises, especially in protection of intellectual property rights, market entry and other preferential policies, which provide a strong guarantee for the development of foreign-invested enterprises in China.
2. Consumption upgrading: With the con-tinuous economic growth in China, the purchasing power of consumers continues to rise, and market demand is becoming increasingly diversified. Foreign-invested enterprises are encouraged to introduce advanced technology and management experience to meet the demands of Chinese consumers, thus realizing mutual benefits and win-win results.
3. Scientific and technological in-novation: China has made remarkable achievements in the field of scientific and technological innovation, especially in the areas of AI, big data and new energy vehicles. Foreign-invested enterprises may cooperate with local Chinese enter-prises to jointly promote technological progress and industrial upgrading.
4. Coordinated regional develop-ment: China's coordinated regional develop-ment policies provide more options for foreign-invested enterprises. For example, the coor-dinated development of the Yangtze River Delta, Pearl River Delta, Beijing-Tianjin-Hebei, and other economic circles has created favorable conditions for foreign-invested enterprises to lay out in different re-gions of China.
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Impact of China-US Relations
When discussing the impact of China-US relations on foreign investment in China, the guests believed that despite of the uncertainty in the current China-US trade relations, the Chinese market would be full of opportunities in the long run. Some guests pointed out that it might be the right moment for European companies to make investment in China. They suggested that foreign enterprises should pay close attention to the changes in the trade relations between China and the United States and flexibly adjust their strategies to seize the market opportunities.
This Salon provided a platform for the guests to share their valuable insights and suggestions for the development of foreign-invested enterprises in China. In the future, Shiju will continue to organize such events with a view to providing more support and assistance to the development of foreign-invested enterprises in China.
