Innovation trend, Belt & Road improving business landscape

- May 29, 2018-

Low-end, labor-intensive and environmentally unfriendly foreign direct investment will no longer dominate China's investment landscape, as its primary engine of economic growth has shifted from exports and investment to consumption and innovation, business leaders said.

FDI into high-tech manufacturing fields including medical, electronic and telecommunication equipment manufacturing maintained rapid growth in the first four months of this year. The figure jumped 79.5 percent year-on-year to 29.6 billion yuan ($4.65 billion), data from the Ministry of Commerce show.

"The transformation comes after China decided to focus on the quality and sustainability of its economic growth rather than quantity," said Zhang Xiaoqiang, vice-chairman of the China Center for International Economic Exchanges.

He said a green environment, stability, employment and the improvement of people's living standards are the government's priorities.

In the past, foreign companies manufactured products in China and shipped them to global markets. The situation has changed dramatically as many multinationals want to sell in China, too. The country has become the world's largest market that no company can overlook, Zhang said.