Policy signals

China is determined to become more accessible to global investors by further expanding market access, improving foreign investment policies and protecting the legitimate rights of foreign investors, according to Chinese Vice Premier Wang Yang speaking at the International Investment Forum 2016.

Wang said China has been the top destination for foreign investment among developing countries for 24 consecutive years. More than 850,000 foreign companies have invested in China, with their investment exceeding $1.7 trillion.

In 2015, global FDI flows rose to $1.76 trillion, he said, hitting their highest level since financial crisis in 2008.

However, UNCTAD warned that cross-border investment is expected to contract by 10 to 15 percent this year. Zhan predicted that FDI flows into China will remain at a high level but won’t have a drastic increase in 2016.

Despite an industry downturn, Caterpillar sees it as a natural transition and is optimistic about China in a long run, said Chen Qihua, Vice President of Caterpillar Inc., the world’s largest construction and mining equipment maker.

While acknowledging that the business environment in China is becoming more competitive, he stressed the importance of upgrading technology and improving efficiency.