Vote of confidence in China's future

Another factor boosting MNCs' confidence in China is the establishment of more intellectual property rights courts at both central and provincial levels since the beginning of this year. Experts have hailed this move as a notable step to protect IP rights.

The new protection mechanisms have already taken shape across the country, said Li Yong, deputy director of the China Association of International Trade Expert Committee.

By constantly deepening reform in free trade zones, reforming and streamlining regulations on foreign investment, and adopting a service-provider level of awareness, the Chinese government has given strong support to foreign companies to develop in its market, said Rachel Duan, president and CEO of GE Global Growth Markets.

GE announced in July that it will open a new factory at Jieyang's offshore wind cluster. It will also establish a new operations and development center in Guangzhou, Guangdong province. Its new offshore wind factory in Jieyang will help meet China's growing demand for offshore wind energy and will serve both domestic and the Asia-Pacific regional markets.

Zhang Xiaofan, a partner at Deloitte's global Chinese services group, said trade tensions between China and the US will not force any country or region to replace China's position as a key player in the global supply chain, though neighboring countries such as Vietnam and Thailand have already initiated their moves to entice more foreign investment to their shores.

Because of its members' different cultures, currencies and political systems, the Association of Southeast Asian Nations cannot match China's size as a huge consumption market. Nor can ASEAN members muster as many policy, institutional and infrastructural advantages as China to fine-tune economic structures and fend off potential financial risks, Zhang said.

Consumer goods, the biggest driver of the Chinese economy, saw retail sales rise 8.3 percent year-on-year to 22.8 trillion yuan between January and July, a positive sign showing the country's increasing consumption power comes amid a complex economic situation marked by growing external uncertainties, data from the National Bureau of Statistics showed.

Attracted by China's consumer market, where an expanding middle-income group holds sway, and fast-developing information technology sector, foreign investment from Germany, the Republic of Korea and Japan surged in the first seven months of this year, posting growth rates of 72.4 percent, 69.7 percent and 12.6 percent year-on-year, respectively, government data showed.

FDI from the European Union rose 18.3 percent year-on-year, while FDI from countries participating in the BRI grew by 5 percent.