Commentary: Making Foreign Investors Feel Safe in China is Essential For Its Economic Progress

Creating a conducive and law-based business climate for foreign investors is pivotal for China's economic transformation. However, recent violent incidents involving foreigners suggest the need for further improvements [para. 1]. At the Third Plenum of the Chinese Communist Party's 20th Party Congress in July, top leadership confirmed its national policy of opening up, aiming for transparency through reform [para. 2]. A key focus is crafting a market-oriented, law-based, and internationalized business environment while legally safeguarding foreign investors' rights [para. 3]. Efforts were also discussed to simplify life in China for foreigners regarding entry requirements, residency permits, medical care, and payment options [para. 4], reflecting China's commitment to global economic engagement.

Despite these efforts, violent incidents like knife attacks on foreign students in Suzhou and Shenzhen have raised safety concerns for foreign investors [para. 5]. High-quality development progress dictates that foreign investment is crucial for China's future. The Ministry of Commerce reports 31,654 new foreign-invested enterprises registered from January to July, marking an 11.4% year-on-year increase [para. 6]. Foreign investment structure is enhancing, notably in high-tech manufacturing, which attracted 63.8 billion yuan ($9 billion), accounting for 12.8% of the total, with a 2.4 percentage point rise from the previous year. Sectors like medical equipment manufacturing saw an 87.5% year-on-year growth, and professional technical services, including R&D centers, noted a 43.4% increase [para. 7].

Global challenges such as unilateralism and decoupling policies are creating increased friction between nations, impacting cross-border businesses and individuals [para. 8]. Foreign investment in China faces uncertainties, thereby pressuring investors and necessitating robust efforts from China to maintain faith in its economy [para. 9]. Safety remains a significant factor for investors evaluating potential business venues. Incidents like the deadly stabbing of a 10-year-old Japanese schoolboy in Shenzhen and another knife attack in Suzhou that injured a Japanese mother and her child, also killing a Chinese bus attendant, have sparked considerable worry [para. 10].

Creating a safe environment is essential not only for foreign investors but also for Chinese society, as this issue gains traction on international social networks [para. 11]. Chinese authorities have assured social stability, with Foreign Ministry spokesperson Lin Jian reiterating China's welcoming stance towards foreigners and commitment to ensuring their safety [para. 13]. The State Council recently pledged to promptly address foreign investors' legitimate concerns and optimize the business environment through practical measures [para. 14].

Anti-foreign sentiments can have adverse impacts, evolving into dangerous behavior. Extremist hate speech must be rapidly countered so foreign investors and their families do not feel threatened. Internet platforms acted against posts inciting extreme nationalism following the Suzhou incident, though more efficient measures are necessary [para. 16]. Historically, China has effectively addressed foreign investors' concerns, turning crises into opportunities that deepen mutual trust [para. 17].

In this challenging context, foreign investment continues to be vital for energizing the Chinese economy, and China remains committed to mutual benefit and trust. Handling such incidents effectively is crucial to maintaining and bolstering these connections [para. 18]. Zhou Dongxu, a reporter at Caixin Media, reinforces these points in his article [para. 19].