Musk's visit to China is only one day, optimistic about China, the market value instantly soared by 600 billion, through Musk and other Western foreign investment in this year's increase in cooperation with China, in the case of tense relations between China and the West, the West regards China as a "competitive" opponent, China is still the best destination for capital.
Musk just said that China is the best, and the market value has skyrocketed by 680 billion
On April 28, Musk made a surprise visit to China and clearly expressed his "love" for China during a meeting with the president of the China Council for the Promotion of International Trade, saying that he was a super fan of China. Later, when Musk was received by the Chinese leader, he made it clear that the Tesla factory in Shanghai is currently the best performing factory.
Musk launched the "Whirlwind Visit to China" itinerary on April 29
According to outside analysis, the main purpose of Musk's quick visit to China is to discuss the launch of "Full Self-Driving" (FSD) software in China and obtain approval, and Musk will return to China within a day of his visit.
Interestingly, during Musk's visit to China, the Indian media paid attention to the whole process, mainly because Musk had specifically postponed his visit to India, and it was planned that Musk would even have a meeting with Indian Prime Minister Modi.
Compared to India, it is more important than China
But unexpectedly, Musk quickly visited China after announcing the postponement of his trip to India, which made Musk criticized by public opinion in India, saying that Musk looked down on India and only focused on China, and India's potential was not much worse than China's.
Tesla's market capitalization skyrocketed by 680 billion
However, Musk created huge economic benefits in less than 24 hours of his visit to China, which his visit to India simply could not bring, according to US media reports on the day of Marcos's visit to China, Tesla's stock price soared by more than 15%, setting a record in 4 years, and its market value soared by 680 billion yuan.
The visit to China has greatly boosted the confidence of foreign investors, and China is still the best destination for foreign investment
Previously, Tesla announced the news of global layoffs, which caused the stock price to plummet by 220 billion, and it rose a lot back all of a sudden, which shows how much influence China has on Tesla. Outside analysts believe that the surge in Tesla's stock price fully shows that China is still the best destination for foreign investment.
It can be said that in the past few years since the beginning of the epidemic, the recovery of global trade and investment has been sluggish, the demand for major markets has been sluggish, and the United States and many hardcore followers have launched a trade war against China, and China's foreign trade and foreign investment have been under pressure. But despite this, China remains a huge attraction for foreign investment.
Foreign investors are still very optimistic about the development prospects of the Chinese market
This is despite an 18% year-on-year decline in global cross-border direct investment last year. However, China is still the second largest country in the world and the largest in developing countries to attract foreign investment. In addition, driven by the Belt and Road Initiative, China has signed more than 3,000 projects with more than 100 countries, directly driving nearly one trillion US dollars of investment.
In order to further attract foreign investment, China's government work report this year clearly stated that it will steadily expand institutional opening-up and continue to relax market access for foreign investment.
The mainland's GDP growth rate in the first quarter has obvious advantages
China is more attractive to foreign investment than other countries
China is inherently attractive to foreign investment, and despite some economic recessions in different countries after the pandemic, China is still one of the fastest-growing economies, showing great resilience and resilience.
According to the National Bureau of Statistics, China's economic growth rate in the first quarter of this year was 5.3%, far exceeding that of other old capitalist countries such as the United States, France, Britain, Germany, and Japan.
The reason why Musk postponed his visit to India to China this time is that Tesla is facing problems such as weak market demand and intensified competition, China's huge middle-income group and huge consumption potential provide a broad market space for foreign companies, and it is also Tesla's second largest market.
Vehicles using "Full Self-Driving" (FSD) software
If the "Full Self-Driving" (FSD) software is approved, it will further help Tesla compete for market share in China. Moreover, this "fully autonomous driving" (FSD) technology is very conducive to the technological breakthrough and another innovation and upgrading of the domestic new energy vehicle industry, which can allow domestic and foreign car companies to enter a new track and continue to compete with each other.
Therefore, the demand for various products in the Chinese market continues to grow, providing a broad market space for foreign companies, and they can find development opportunities in the Chinese market.
The head of AMD also said during his visit to China that he would increase investment in China
In terms of policy support and environment, China is also more suitable for investment than other countries, and China's political environment is relatively stable, with strong policy continuity and predictability, which provides good expectations for the long-term development of foreign-funded enterprises in China.
For example, German Chancellor Olaf Scholz led a huge political and business delegation to China to strengthen further economic and trade cooperation with China, which is to believe that the environment for investment in China will be stable. In addition, as mentioned earlier, China has also strengthened its policy support for foreign investment, including lowering the entry threshold for foreign investment, expanding pilot free trade zones, and optimizing the foreign investment environment.
Therefore, with the blessing of these advantages, although the United States has been finding various reasons to fight trade wars and financial wars against China in recent years, and trying to target Chinese companies overseas, it has not allowed European and American companies to enter the Chinese market.
However, on the one hand, China has completely withstood the pressure of the United States, and on the other hand, it has achieved remarkable results in attracting foreign investment through a series of policies and means.
Compared with the weak economy of the United States, China still shows strong resilience, the Chinese market is dynamic and has potential, and China's attitude of maintaining development will not change, which also reflects that the Chinese market is more competitive and attractive than the American market.
Despite the changing global economy, China has proved itself to be the preferred destination for capital with its strong market potential and policy advantages.
The positive moves by Musk and other foreign giants show that China is not only the best choice for global investors seeking stable growth and a reliable investment environment, but also an unshakable economic powerhouse, and no one can contain China's rise, whether the United States or any other country.
Some of the sources in the article are: 1. The mainland market has outstanding advantages in attracting foreign investment