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Xinhua Silk Road
Investment

Economic policy-making one of main reasons for China's appeal to foreign direct investment: U.S. economist

September 15, 2021


Abstract : China has shown greater appeal to new foreign direct investment projects than the United States amid COVID-19, and the success mainly lies in the country's economic policy-making, a U.S. risk manager and political economist has said.

An exhibitor (1st L) explains to visitors at a cosmetics booth during the 21st China International Fair for Investment and Trade (CIFIT) in Xiamen, southeast China's Fujian Province, Sept. 8, 2021. (Xinhua/Wei Peiquan)

Chinese officials "make decisions based on the long-term benefits of the overall economy," while officials in countries like the United States "target key factions of the electorate when making decisions with the short-term goal of winning reelection," said a U.S. risk manager and political economist.

WASHINGTON, Sept. 15 (Xinhua) -- China has shown greater appeal to new foreign direct investment projects than the United States amid COVID-19, and the success mainly lies in the country's economic policy-making, a U.S. risk manager and political economist has said.

In this vein, Robert Ginsburg, who currently manages the boutique law and consulting firm RBG Global that focuses on foreign investment and trade projects, pointed out two major advantages of Chinese decision-makers in an article published Saturday by Forbes magazine.

Firstly, Chinese officials "make decisions based on the long-term benefits of the overall economy," while officials in countries like the United States "target key factions of the electorate when making decisions with the short-term goal of winning reelection," he wrote.

Workers operate at the construction site for a comprehensive traffic hub in Qianhai, Shenzhen City, south China's Guangdong Province, on Sept. 8, 2021. (Xinhua/Mao Siqian)

The expert also mentioned special economic zones, saying that Chinese policy makers place these zones along the coasts to stimulate export-led growth that bolsters the nation's economy.

"Foreign direct investors are often compelled to invest in countries with strong coastal economies to better facilitate trade with businesses in nearby countries," Ginsburg said.

"This contributed to China's advancement beyond the U.S. in terms of new foreign direct investments," he added.

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Keyword: FDI

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