China has grown at rates of more than 12% in recent years, until it was attracted to become the second international economy after the United States, but it was all the result of openness to private companies and foreign investment, according to the article. The opinion of foreign trade expert Gary Rodriguez, in his article Chinese Tales, is not at all.
The post emphasizes a conversation with a Chinese diplomat about the process that the Asian giant had to go through to get to the situation it is in now, after several years of applying capitalist recipes.
From 1979 to 2022, China’s merchandise trade (in US dollars) grew at an average annual rate of 13.3%, and its share in the world increased from 0.9% to 12.5%. It has attracted cumulative foreign investment of 2.9 trillion US dollars, and established more than 1 million foreign-funded enterprises. As of the end of August 2022, the number of private enterprises in China has increased from 10,857,000 at the end of 2012 to 47,011,000, more than fourfold in 10 years, and the proportion of private enterprises in the total number of enterprises has increased from 79.4% to 93.3%. From 2013 to 2021, China’s outward direct investment reached 1.4 trillion US dollars, with an average annual growth rate of 8.2%. In 2022, China’s direct investment abroad will reach $146.5 billion,” Rodriguez’s article read.
According to China’s Ministry of Commerce, 24,000 new foreign companies landed in the country in the first half of 2023, an annual increase of 35.7%. “During this period, foreign direct investment from developed countries, including the United Kingdom and Germany, experienced a rapid expansion (…) According to ministry data, capital inflows into the Chinese mainland from France, the United Kingdom, Japan and Germany increased by 173.3%, 135.3 %, 53% and 14.2%, respectively, during the first half of the year” (“Economic Watch: Strength of Chinese industrial chains attracts more foreign companies”, according to spanish.xinhuanet.com.
Surprisingly, the expert said, now, to improve the environment and increase growth, the Chinese government plans to cut taxes and fees, and increase financial support for its agricultural sector and small and micro enterprises.
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