Attractive market
First-half FDI inflow reached 441.54 billion yuan ($65 billion), easing 0.1 percent on a yearly basis, according to data released by the MOFCOM on July 13. The number of new foreign-funded companies rose 12.3 percent to 15,053 during this same period.
"China is a huge market and German companies are willing to come here to share knowledge," Hanna Mueller, chief representative of China matters at the Federation of German Industries, told the meeting.
"The Chinese market is attractive to Indian companies and more cooperation is expected between the two nations in sectors including information technology and pharmaceuticals in the future," Atul Dalakoti, executive director of the Federation of Indian Chambers of Commerce and Industry, told the Global Times on Wednesday.
Atul said that in a bid to tackle rising rivalry with foreign companies, Chinese ones are expected to enhance competitiveness by developing their own brands or creating their own patented products and to develop advanced industries instead of focusing on labor-intensive industries.
Experts at the meeting said that foreign investors that seek growth in the Chinese market need to learn more about the society, business operation methods as well as local laws and rules.
B&R initiative call
Foreign capital plays an essential role in the China-proposed "Belt and Road" (B&R) initiative, experts at the meeting said.
Some of the world's largest multinational firms have vast experience in the roughly 70 countries and regions covered by the B&R initiative, but there are relatively few Chinese enterprises that have that sort of global experience, said Enright.
There are still relatively few Chinese companies that have massive global networks, Enright continued.
"Trying to coordinate and communicate across the B&R routes still pose enormous tasks and challenges, especially with regard to logistics, technology and communications," he said.
An example of how to tackle these problems would be if foreign companies closely worked with and partnered with inexperienced Chinese companies in countries and regions along the B&R routes, noted Enright.
As the initiative was proposed by China and Chinese companies generally do not have a high level of international experience, it is essential that foreign companies become involved in the B&R initiative to ensure its success, according to Enright, who recently published the Chinese-language edition of his book "Developing China: The Remarkable Impact of Foreign Investment" in Beijing.
Enterprises from Germany have shown great interest in the initiative and also hope to cooperate with Chinese companies on some projects, said Mueller, the aforementioned German chief representative.
"But we don't have the contacts for some projects on the Chinese side," Mueller said.
She noted that the Chinese side is expected to provide more information to German firms and more communication is needed between companies of the two countries.
To summarize these matters, John Russell, the managing director at North Head, noted that, "overall, the impact of FDI has been positive in the past for accelerating China's economic development. It remains relevant, but now FDI needs to adapt to China's future needs, through, for example, supply-side transformation, promoting greater innovation and realization of the B&R Initiative."
