Despite the latest COVID-19 flare-ups in China, foreign companies in the eastern province of Fujian remain upbeat about the outlook of the country’s vast market.
“We are optimistic about the prospect of China’s display industry,” said Ohashi Nobuo, general manager of Electric Glass (Xiamen) Co., Ltd., a manufacturer of glass for flat panel displays.
Electric Glass invested 950 million yuan (about 140 million U.S. dollars) to launch its Phase IV project in the city of Xiamen, which started operation in April.
The display market is growing in China, said Ohashi Nobuo, adding that producers of displays used to concentrate in Japan and the Republic of Korea, but now China has become a major player in the global market.
Official statistics showed that in the first quarter of 2022, foreign direct investment (FDI) into the Chinese mainland in actual use expanded 25.6 percent year on year to 379.87 billion yuan.
During the same period, FDI into Fujian Province in actual use rose 39.9 percent year on year to 19.05 billion yuan, already achieving 48.2 percent of this year’s target.
There are 31 foreign companies with direct investments of more than 100 million yuan in Fujian, with the investment amount growing 50.9 percent from the same period last year.
Foreign companies’ confidence stems from favorable policies along with the big market, analysts noted, adding that many local governments are working to improve the business environment by providing more policy benefits to foreign companies.
In the Xiamen Area of China (Fujian) Pilot Free Trade Zone, 36 foreign companies were newly registered in the first quarter, with a total registered capital of 2.26 billion yuan.
“We have been working with different government departments to streamline approval processes and interpret relevant policies so that we can facilitate project launches and relieve the pressure on enterprises,” said Lin Tianxing, an official with the free trade zone administration.