Davos Leaders Optimistic for Chinese Market

The Summer Davos summit has concluded today in the eastern Chinese port city of Tianjin. The world's business leaders and top policymakers are saying they have faith in the Chinese market as the country develops through fast urbanization, a green economy revolution and economic restructuring. Su Yi has more.

Foreign direct investment in China has risen for the 13th straight month in August, showing the country is one of the most attractive investment destinations around the world.

The Ministry of Commerce says investment in China has increased 1.4 percent from a year earlier to 7.6 billion US dollars in August and investment in the first eight months of this year has expanded to nearly 66 billion.

The UN's trade and development agency has forecasted that China will be the top target for global foreign investment until the end of 2012.

Eckahrd Cordes, CEO of German retailing giant Metro, says his company is confident about the future of the Chinese market.

"I have traveled to China maybe 100 times or more. Obviously I am more than excited about the progress one can see there. We have been there since 1996, by the end of this year operating 50 stores. And we are going to open the first media market in China and that is the world number 2 consumer electronic retailing store in Shanghai."

Nissan, Japan's third-largest automaker, is opening a new plant in central China capable of building some 120-thousand vehicles a year, since China overtook the United States to become the world's largest car market last year.

These multinationals have confidence not only because of the rising purchasing power of residents in big cities, but also because of the country's consumption potential in medium-sized cities.

Some business leaders like David Michael, senior partner and CEO of Boston Consulting Group, believe more opportunities will come from those emerging markets.

"We are relatively optimistic for the continued growth of China's economy overall. We believe it will continue to be driven by the ongoing balancing of China's economy and the continued growth of the consumer segments. China is on a journey of picking a new balancing point of its economy, where the consumer price plays an increasingly important role."

The economic restructuring being carried out now goes beyond boosting domestic consumption. For example, China is developing a green economy and has included the sector in the Directive Catalogue of Industries for Foreign Investment.

As of July, foreign investment in this country has already topped one trillion US dollars. Over 470 companies on the Forbes top 500 list have set up branches in China.

Amid some concerns over the country's investment environment, top Chinese officials, including vice president Xi Jinping and premier Wen Jiabao, have repeatedly pledged to create a more open and fair business environment and offer foreign companies "national treatment."

For CRI, I'm Su Yi.