Foreign firms that choose China will profit

By Mei Xinyu Source:Global Times Published: 2020/1/7 20:03:40

Illustration: Luo Xuan/GT

The year 2020 has begun in economic, political and military turmoil, placing international investors at a crossroads. 

Some foreign companies in China were dealt an unexpected blow in 2019 amid waves of anti-Beijing sentiment, as riots broke out in Hong Kong Special Administrative Region. Foreign companies have complained that they are stuck between criticisms from the mainland public and the Hong Kong rioters. This has understandably left many wary of their positions in the Chinese market. 

Looking at the bigger picture, however, a few facts about the development of companies and individuals are clear.

First, political stability is a priority for any society's business sector. The unrest in the Hong Kong does not indicate a chaotic social order, or that the Chinese government lacks the capability to maintain social stability. 

The unrest in Hong Kong continues due to the city's special position under the "One Country, Two Systems" principle. The city is still accumulating governance experience, thus it is easily manipulated by foreign forces during intensifying international conflict.

Compared to upheavals in many regions around the world and uncertainty in the US, rational investors should realize that China's stable social environment is irreplaceable. 

Second, in a world full of uncertainties, people can't expect to completely eliminate risks. A government's capability to counter risks is a more important concern. For foreign companies paying attention to China's affairs, it is not hard to see that Chinese policymakers took risk-preventive measures in 2019 and made early arrangements as they foresaw potential concerns in the international arena. 

The pursuit of development opportunities is very important for enterprises and individuals globally. And China, with its vast market, has become the world's second-largest economy. More and more investors and scholars have been estimating when China's economy will surpass even that of the US.

The Chinese economy has a promising future. Even those publicly declaring that China will never overtake the US are likely questioning their own words.

For foreign investors, China will not promise a utopia free from all risks and turbulence, but it can confidently promise them a broader development space.

For this reason, the choice between the Chinese mainland and forces trying to topple Hong Kong should be an easy one. In the global market, China is the right choice for companies and individual investors. History will prove this decision correct.

The author is a research fellow with the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce.


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