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Overseas companies hail expanded opening-up

By XU WEI | China Daily | Updated: 2021-01-06 08:05
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An airplane takes shape at COMAC Shanghai Aircraft Manufacturing Co. [Photo/Xinhua]

Foreign businesses

In a research note, Oxford Economics said it believed China would continue to take measures to open up its economy and financial sector to the outside world this year.

"Building on substantial steps in 2020, we expect more movement on lowering import tariffs and raising or removing foreign ownership caps and capital flow quotas," the note said.

Wu, the researcher, said this would be beneficial in attracting foreign investment to areas other than the financial and auto sectors.

"In particular, opening up the services sector, including insurance, transportation, infrastructure and construction, could yield great benefits to both China and foreign investors," he said.

Wu added that China's manufacturing remains fundamentally competitive in many sectors and its market is still a draw for foreign companies, even though some may move parts of their production processes elsewhere in Asia.

"The sheer size of productive labor and sophisticated local supply chains within China are difficult for others to replace," he said.

"With rising household incomes and the expansion of the middle-income group, foreign companies will continue to find it attractive to stay in China and serve its massive market."

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