BIZCHINA / Center
China top choice for investors
By Zhang Ran (China Daily)
Updated: 2007-07-05 08:29
China is the most attractive destination for foreign investment,
according to a survey conducted by leading global professional services
firm Ernst & Young.
Between February and March 2007, the survey asked 809 managers from
various industries in European, American and Asian firms about their
investment preferences.
Almost half - 48 percent - of international investors cited China as one
of their top three preferred business locations in 2007, up from 41
percent in the 2006 survey.
They said they were drawn to China for its low labor costs, more
competitive rates and higher productivity. The country's infrastructure,
quality of research and development, workforce education and political
stability were cited as major advantages.
However, the survey revealed that China, while topping the rankings for
its favorable labor costs, still lags behind in quality of workforce -
only 4 percent of those surveyed said it is the most attractive country
in terms of labor skills.
In addition, only 4 percent of respondents said China is the most
attractive economy in terms of R&D availability and quality, as opposed
to 43 percent for Europe and 27 percent for North America.
The survey ranked investment preferences on the basis of market and
access, labor and productivity, fiscal, legal, environmental and regional
issues.
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The United States was found to be the second-most attractive country,
finding favor with 33 percent of the respondents.
India's popularity appears to be increasing fast. While 11 percent of
investors cited it among their top three preferences in 2004, it has
risen to 26 percent in 2007.
Aside from India and China, the other two "BRIC" countries of Brazil and
Russia feature much less prominently in terms of investor interest.
Despite Russia's abundant energy supplies, internal political
uncertainties seem to deter investors. Similarly for Brazil, the
considerable efforts by the government to secure macroeconomic stability
have failed to convince corporate decision-makers.
(For more biz stories, please visit Industry Updates)
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