AI tech prowess attracting investors

China's advancements in artificial intelligence have captivated global attention and emerged as a pivotal draw for foreign investment, said Hoffman Cheong, EY China North managing partner, at the just-concluded ZGC Forum in Beijing.

Cheong highlighted the evolving industrial landscape in China, with a focus on high-tech sectors like artificial intelligence, information technology and green energy. He said China's rapid progress in these cutting-edge fields has offered investors fresh strategic prospects.

"At the onset of this year, China's AI advancements have not only captured global interest but also reshaped the world's perception of products labeled 'Made in China'. With a slew of technological breakthroughs coming to the fore, foreign investors are witnessing the innovative capabilities and market potential of Chinese tech firms, underscoring China's growing tech prowess as a pivotal factor in attracting foreign investments.

"Over the years, China's government has implemented a series of policies to support the growth of strategic emerging industries like AI and new energy, fostering a conducive environment for tech companies to thrive and enticing more multinational corporations to actively establish operations in China," he said.

According to China's Ministry of Commerce, the number of newly established foreign-invested enterprises nationwide grew 9.9 percent to 59,080 last year. Investments in high-tech manufacturing reached 96.29 billion yuan ($13.25 billion), constituting 11.7 percent of the total foreign capital usage. Notably, foreign capital inflows into the medical equipment and instrument manufacturing industry, professional technical services industry, and computer and office equipment manufacturing industry, saw significant spikes of 98.7 percent, 40.8 percent and 21.9 percent, respectively.

Experts said China's commitment to openness and stability in foreign investments has encouraged foreign firms to deepen their engagement in the country. As the world's second-largest consumer market, China offers significant investment and consumption opportunities. Its emphasis on high-quality development and transition to greener, more digitalized and intelligent industries has attracted foreign companies that are looking for collaboration. Moreover, strategic policies have successfully supported the growth of foreign enterprises in China through tangible actions, optimizing the business environment and dismantling access barriers.

"As China's opening-up broadens, it is cultivating a market-oriented, rule-of-law-based business environment. The government has launched a slew of policies aiming to stabilize the economy, attract foreign investments and enhance intellectual property protection. These efforts create favorable opportunities for domestic and foreign enterprises, boosting confidence in long-term investments in China," said Cheong.

Cheong said the government's support for strategic industries like high technology and new energy will create more investment opportunities, increasing China's appeal to foreign investors.

"We look forward to more progress in cross-border data flows, city internationalization and improved convenience for foreigners," he said.