Vote of confidence in China's future

As for the northeast region, Saudi Arabian Oil Co, or Aramco, the world's largest oil producer by revenue, announced in February that it would invest $10 billion to build a fully integrated refining and petrochemical complex in Panjin, Liaoning province.

Foreign companies' optimism about future prospects in China is palpable across industries. Late last year, BMW Brilliance Automotive, the German automaker's joint venture in China, opened its third plant in Shenyang, Liaoning's capital.

Part of the reason for foreign companies' almost exuberant existence in China can be traced to the country's trade development via the Belt and Road Initiative, which augmented demand. The BRI also helped create room for global companies to ship more products manufactured in China to other parts of the world.

This they did by making new investments and exporting technologies, said Wei Jianguo, vice-president of the China Center for International Economic Exchanges in Beijing.

Agreed Marcel Smits, head of corporate strategy at US agribusiness giant Cargill Inc. He noted that China's business environment continues to improve, and government policy is sending favorable signals. China's Foreign Investment Law, which was enacted earlier this year during the top legislature's annual sessions, will better protect the operations of overseas businesses in the country, he said.

Cargill invested $200 million in the first half of this year to build new plants and research facilities in different provinces of China.

Despite the ongoing Sino-US trade dispute, the Ministry of Commerce announced earlier this month that the inflow of foreign direct investment into the Chinese mainland rose 7.3 percent year-on-year to 533.14 billion yuan between January and July. This is yet another proof of foreign companies' positive response to the Chinese government's opening-up and liberalization measures.

New growth momentum has also been created by plans to establish six new pilot free trade zones and the release of two shortened negative lists for foreign investment. These are expected to allow access to more industrial sectors, said Lu Ming, vice-dean at the Academy of China Council for the Promotion of International Trade in Beijing.

The newly revised negative lists, which took effect on July 30, ease market access in agriculture, mining and manufacturing. The services sector has also seen substantial opening-up in transportation, infrastructure, culture and value-added telecommunications.

In the past seven months, 24,050 new foreign-funded enterprises started operations in China, according to the ministry.

With China witnessing consumption upgrade and industrial upgrade, foreign investment in high-tech industries rose 43 percent year-on-year in the first half of this year, accounting for more than 29 percent of the total FDI. The high-tech services sector received 97.4 billion yuan in FDI, up more than 63 percent.

Zhang Zhiqiang, managing director of ABB China, said the company expanded its production base in Xiamen, Fujian province, and built a $150 million robotics factory under the theme of robots make robots in Shanghai. ABB is now investing more in software applications, artificial intelligence, human resources and in building partnerships with both Chinese and global companies across the country, he said.

"China has invested heavily in industries like smart manufacturing, artificial intelligence, robotics and clean energy, which are at the forefront of the world. This is certainly an opportunity for us, but also means a challenge. Because our competitors are also doing the same, we need to figure out how we can keep up or get ahead in this competitive environment."

Zhang said the Swiss company will deploy more resources and software engineers in both industrial and service robot development and production in China as rapid industrial growth and frenetic urbanization have prompted labor-intensive industries to find new ways of coping with increased demand, especially in automotive and mining sectors.

Eager to seize more share in China's new energy vehicle market, California-based Tesla Inc is expected to establish a $7.3 billion manufacturing facility in Shanghai, its first such plant outside the US. The Shanghai plant will start operations by the end of this year. It is also the first global automaker to benefit from China's revised policy announced in April 2018, allowing foreign carmakers to set up wholly-owned subsidiaries in China.