Foreign-funded enterprises have moved away from the truth.
Recently, How Big V has published an article reporting that many foreign investors have gone, but they do not say why. In fact, most of the relocation is a business issue, such as the recent announcement by Awa Paper, a specialty paper manufacturer in Japan, that the liquidation procedures of Awa Filter Media (Shanghai) Co., Ltd., a consolidated subsidiary in Shanghai, were completed on September 17. Awa Filter Media was established in 2003 (Awa Paper's 97.6% investment) and has been engaged in the manufacturing and sales of automotive engine filter media. Due to the strengthening of environmental protection regulations in Shanghai and the increasing competition for low costs, the company was decided to dissolve in 2017.
When it was decided to disband, Awa Paper also began to make a new layout. As early as 2017, Awa Paper established a joint venture with enterprises in Anhui Province, and has taken over the engine filter media business from Awa Filter Media. The liquidation of Awa Filter Media (Shanghai) Co., Ltd. had a slight impact on Awa Paper's consolidated results in fiscal 2021 (ending March 2022). (Source: Nikkei Shimbun).
Toshiba, which was previously hyped, is actually not competitive in the domestic market, and Toshiba TV department is sold to Hisense, and THE PC department is sold to Asus. Panasonic Battery also closed its Shanghai factory this year and turned to focus on new energy batteries, because he has lost to Shuanglu and Nanfu in the domestic battery industry, and its market share has dropped to 2%.
In addition to the relocation of some uncompetitive enterprises, in industries where foreign capital still has market competitiveness, foreign companies are still entering the Chinese market. For example, the vehicle battery market has great potential, China is also the world's largest consumer market for electric vehicles, South Korea's Sk Innovation and Japan's Asahi Kasei have successively invested in large battery companies in China.
The rise of the domestic large ship manufacturing industry has also attracted Kawasaki Heavy Industries to relocate the manufacture of large oil and gas ships to Shanghai. (Source: Yonhap News Agency, Nikkei Shimbun)
Recent World Bank reports show that China is still the best investor in foreign capital. Although it is not as attractive as Southeast Asian countries in terms of taxes and fees, it has incomparable advantages in the quality of labor, infrastructure construction, and industrial support, and more importantly, Chinese mainland has a large market equivalent to the entire European Union, and the consumption potential of this market is constantly increasing. It is believed that China's foreign investment will continue to create new highs.