BEIJING, May 9 (Xinhua) -- ExxonMobil broke ground for its Ethylene Project in Huizhou, south China's Guangdong Province on April 22. With a total investment of about 10 billion U.S. dollars, the project is the first large-scale petrochemical project wholly-owned by a U.S. company in China.
Not only ExxonMobil, American membership-only warehouse store chain Costco has announced a plan to open its second store in Shanghai; Japanese automaker Toyota plans to build a new electric vehicle plant in Tianjin in partnership with FAW Group; Walmart has announced its subsidiary Sam's Club to open a new flagship store in Shanghai; Starbucks will invest 129 million U.S. dollars in a green coffee roasting plant in Kunshan, east China's Jiangsu Province.
Experts say that the multinationals are moving ahead with their strategic investments in China at a faster pace, China remains its consistent attraction towards foreign investments and businesses.
Investing more
"The groundbreaking is a milestone for this mega investment project," said Fernando Vallina, chairman of ExxonMobil (China) Investment Co., Ltd., at the groundbreaking ceremony.
This project will be built in two phases. The first phase is scheduled to be completed by 2023, with a 1.6 million tonne-per-year ethylene cracker and down-stream production of bulk commodities like metallocene polyethylene and high-end polypropylene. The second phase construction will get started as soon as the first phase put into production. Notably, an annual operating income of 39 billion yuan could be expected when the first phase reaches designed capacity.
Fernando Vallina noted that the project, with its large scale investment and high added value, is of strategic importance to ExxonMobil. "We hope we can play an active role in China's manufacturing sector so as to satisfy the growing demand of Chinese customers with sustainable, high-performance products made through advanced technologies", said Fernando Vallina.
The market speaks for itself and clearly refuted the claim that foreign investment are "pulling out of China" with the spread of COVID-19, experts say.
On March 31, a collective project signing ceremony was held in Shanghai with the total foreign investment exceeding 16 billion U.S. dollars through projects such as those by Bosch Capital Management Headquarters, Mitsubishi Metal Trading (China) Co., Ltd., and Sam's Club flagship store.
As an upscale membership-only supermarket chain of retail giant Walmart, Sam's Club has opened more than 20 stores in China, and now is increasing investment in Chinese market. The first flagship store of Sam's Club in China will open in Shanghai's Pudong in 2021, noted Andrew Miles, president of Sam's Club China, adding that upon completion, it will be the largest independent building operated by the company in China. "By the end of 2022, Sam's Club will have 40 to 45 stores in operation or under construction in China. We are excited to announce that we will open a new flagship store in China as part of our rapid expansion efforts. This is our commitment to Chinese members and market."
Optimistic in China market
In the first quarter this year, Shanghai held two collective project signing ceremonies, during which 129 foreign investment projects with a combined investment of 23.9 billion U.S. dollars were signed including about 30 ones each with an investment amount exceeding 100 million U.S. dollars. Moreover, Shanghai has welcomed the addition of ten regional headquarters of foreign multinationals as well as five foreign research and development centers.
"Many investment intentions have been reached. Many foreign multinationals have located their regional headquarters in Shanghai to pool resources from all over the world. All these have fully demonstrated the determination and confidence of foreign-funded enterprises to continue to value China and Shanghai," said Yang Chao, deputy director of Shanghai Municipal Commission of Commerce.
Surveys from chambers of commerce also indicate the growing confidence of foreign investors. According to a report on the epidemic impact by the American Chamber of Commerce in South China (AmCham South China), 75 percent of enterprises interviewed said they will put in place their investments in China as planned regardless of the epidemic impact. Surveys by the American Chamber of Commerce in China, the US-China Business Council and Japan External Trade Organization (JETRO) China, both American and Japanese companies in China have been picking up since March and are more likely to invest compared with that in February, and few of them are considering to adjust their industrial presence.
"Overall, although foreign enterprises in China have taken a hit to varying extent during the epidemic, China hasn't seen and will not see a large-scale withdrawal of foreign investment," said Chinese Ministry of Commerce spokesman Gao Feng, stressing that China is still a magnet for foreign investments and businesses.
Business operation back to normal
As the epidemic is getting under control in China and the resumption of production and work is well on track across the board, the operation of foreign enterprises in China has returned to normal with constantly enhanced production capacity to complete orders.
In Tianjin, FAW Toyota's production base has gotten back in good working order since it resumed production and work more than two months ago. Chen Liming, GM assistant of Tianjin FAW Toyota Motor Co., Ltd., noted that FAW Toyota's all 487 first-tier suppliers have resumed work and Tianjin production base has restored full production capacity with a daily output of about 2,000 vehicles.
Nationwide, foreign enterprises in China have seen an increasing work and production resumption rate.
"China takes the lead in the resumption of production, which strongly bolsters the operation and steady development of Japanese enterprises. Many Japanese companies have showed their confidence in China's market, as well as their willingness to further invest in China," said Gao Feng.
Lately, Lawson, a Japanese franchise chain convenience store, decided to invest more in China by 200 million yuan on the basis of 200-million-yuan increase made last year. "During the epidemic outbreak, Lawson's online sales have surged and the proportion of takeout sales has increased. I believe this business will be a growth point in the future," said Motonobu Miyake, CEO of Lawson (China) Holdings.
The great resilience of China's economy, especially the gradual release of the potential of Chinese market, has effectively boosted the confidence and expectations of foreign investors to invest in China against the backdrop of the pandemic and the grim world economic situation.
The sales model of enterprises has experienced new changes amid the epidemic outbreak, and multiple brands have made it possible for consumers to shop online through live broadcasting and other means, mentioned Fabrice Megarbane, CEO of L'Oreal China. China's market is expected to rebound after the epidemic outbreak. "At present, L'Oreal is preparing for the third China International Import Expo (CIIE)," he said.
Headquartered in Finland, Valmet is the leading global developer and supplier of technologies, automation, and services for the pulp, paper, and energy industries. "As COVID-19 outbreaks, orders for equipment from China have actually increased, and our business in China is expected to increase rather than slump this year," said Zhu Xiangdong, president of Valmet's China area. (Edited by Niu Huizhe with Xinhua Silk Road, niuhuizhe@xinhua.org)
A single purchase
