China’s PBOC attracts foreign businesses as economic challenges grow

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China will open up its financial sector and make its business environment more friendly to foreign businesses, the country’s central bank governor told several Western companies on Monday. Economic challenges will increase.

Pan GongshengGovernor of the People’s Bank of China (PBOC). And the head of the country’s foreign exchange regulator, JP Morgan, led a symposium with representatives from foreign companies, including Tesla (D.S.L.A), HSBC (HSBC), Deutsche Bank (DB), according to BNP Paribas, Japan’s MFUG Bank, German chemical manufacturer BASF, commodity trader Trafigura and Schneider Electric A statement Published on PBOC and State Foreign Exchange Administration (SAFE) websites.

The seminar was aimed at „increasing financial support to help stabilize foreign trade and foreign investment” and improving the „investment environment” for foreign business, the statement said.

Foreign companies and investors have grown wary of mounting risks in the world’s second-largest economy, including a worsening recession. Weak domestic demand And A housing crisisBeijing’s choice National security is a priority Economic development and Relationships deteriorate Between China and many Western countries.

In the first eight months of this year, foreign direct investment in China fell 5.1% from a year earlier, according to published data. Ministry of Commerce of China On Sunday. A separate measure for FDI paints a grim picture.

Direct investment liabilities fell to just $4.9 billion in the April-June period, down 87% from a year earlier. Information Published by SAFE last month. This is the lowest amount for any quarter since registrations Started in 1998.

A business climate survey released Tuesday by the American Chamber of Commerce in Shanghai showed that 40% of respondents are diverting or planning to divert investment originally planned for China elsewhere, mainly to Southeast Asia. This compares with 34% of respondents planning to reinvest last year.

The percentage of companies optimistic about the five-year business outlook is 52%, the lowest in the survey’s history, the chamber said in a statement.

Last month, US Commerce Secretary Gina Raimondo was quoted as saying During a tour of China, some US companies told her that the country had become „uninvestable”.

A spokesperson for the Chinese Foreign Ministry responded by saying that China is one of the world’s most important investment destinations.

Companies attending the BPOC’s meeting called on Beijing to improve its business environment, its statement added.

„[We] „We will continue to improve policy arrangements, creating a market-oriented, legal and international first-class business environment,” Ban told the companies.

Going forward, he added, regulators will create a better financial services sector to support the opening of the economy.