BEIJING - China remains a highly desirable destination for investment and a major global priority for US companies despite some concerns, the American Chamber of Commerce said in a report published on Monday.
More than 91 percent of the surveyed companies said they were optimistic about their outlook for the next five years in China. Nearly 79 percent said their company will expand investment in China this year, and more than 51 percent indicated that investment growth would exceed 10 percent.
"China's economy still has the potential for rapid growth over the medium term, propelled by its second- and third-tier cities, and assuming an appropriate policy mix," the chamber said in its annual White Paper on the State of American Business in China.
While most members continue to be optimistic about China's market potential, some expressed concerns about the regulatory environment and issues such as government procurement and innovation and policies, the paper said.
"Though in some cases problems do exist in the execution of foreign investment policies, the central government's stance towards foreign investment is open," said Wang Zhile, director of the research center on transnational corporations under the Ministry of Commerce.
Wang said the directive released by the State Council earlier this month on foreign investment showed its sincerity and efforts to enhance the investment environment, which will help lower land costs for foreign companies and facilitate the application procedure by transferring power to local governments.
Earlier, the authorities removed a rule requiring government agencies to buy computers and other products with "indigenous innovation".
Li Xiaogang, director of the Foreign Investment Research Center at Shanghai Academy of Social Sciences, said more foreign companies in China are shifting from an export-based strategy to one focused on domestic consumption.
Fifty-eight percent of companies surveyed said their top reason for staying in China is to produce or market goods and services for the Chinese market, the report said.
