Ahead of US-China Trade Agreement Review, China Remains an Attractive Market

People's Daily, Positive Response from US Companies to Phase 1 Trade Agreement Results
Xinhua News Agency, 18,838 Foreign Companies Newly Established in China by July

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Ahead of the US-China trade agreement implementation review scheduled for the 15th, China's state-run People's Daily reported on the 14th (local time) the results of a survey showing positive market outlooks of American companies toward the Chinese market.

China's state-run Xinhua News Agency published an article on the same day stating that as of July this year, a total of 18,838 foreign companies have been newly established in China, indicating that China remains an attractive market.

According to the "China Business Status Survey" by the US-China Business Council cited by People's Daily, 83% of the surveyed American companies identified China as the most important market in their global strategy. Furthermore, nearly 70% of American companies view the business outlook in China positively for the next five years, People's Daily reported.

Among the surveyed companies, 87% responded that they have no plans to relocate their production lines out of China. Of these, 75% said they will continue to invest in their Chinese operations, with investment funds to be used for production expansion, workforce recruitment, and new product development, according to the survey.

Notably, 91% of companies planning to continue investing in China stated that their Chinese operations are still maintaining profitability.

People's Daily emphasized that 88% of respondents showed a positive response to the US-China Phase One trade agreement.

According to People's Daily, under the trade agreement, China has further opened its financial services sector to foreign companies and taken measures to strengthen intellectual property rights.

This survey was conducted over the course of June, with participation from about 100 member companies of the US-China Business Council.

Peng Jiening (彭捷寧), Senior Vice President of the US-China Business Council, said, "The production of member companies is for the Chinese market," adding, "If they are not competitive in China, they cannot be competitive anywhere in the world."

Craig Allen, President of the US-China Business Council, stated, "US-China trade and investment have created about 2.6 million jobs in the United States."

Xinhua News Agency also cited policy briefing materials from the Ministry of Commerce of the State Council of China, reporting that 18,838 foreign companies were newly established in China as of July this year.

Zong Zhangqing (宗長靑), Director of the Foreign Investment Administration at the Ministry of Commerce of the State Council of China, said, "18,838 foreign companies have been newly established in China," adding, "Considering price competitiveness, domestic and international trade environment, and supply chains, foreign companies are investing in China."

It was explained that due to the control of the novel coronavirus infection (COVID-19) by Chinese health authorities, the Chinese economy has entered a recovery phase, boosting foreign companies' confidence in investing in China.

Xinhua News Agency reported that the Ministry of Commerce will strengthen the protection of foreign companies' rights and interests and support the development of foreign companies operating in China.

Xinhua also added the Ministry of Commerce's announcement that issues faced by foreign companies, such as entry problems (including 14-day quarantine and other COVID-19 prevention measures), will be properly resolved. However, the Ministry of Commerce of the State Council expressed dissatisfaction toward the US, stating, "Some politicians in certain countries are inciting de-China-ization."