International Online News: novel coronavirus pneumonia is expected to reduce global FDI by 5% to 15% in 2020, according to a study released by the United Nations Conference on Trade and development 8. In an interview with reporters, UNCTAD officials said that although China will also be affected by the global investment environment, the epidemic will not change the fundamentals of China's attracting foreign investment.
The novel coronavirus pneumonia outbreak earlier this year will have a greater impact on global FDI and may reduce global FDI to the lowest level since the world financial crisis in 2008, according to a report by the joint China World Trade Center conference. "The current preliminary assessment is that it is possible to reduce global (foreign) direct investment by 5 to 15 per cent," said Zhan Xiaoning, director of UNCTAD's investment and enterprise division. It depends on the progress of the epidemic. If the global spread of the epidemic can be basically ended in the first half of the year, the impact of the epidemic on global (foreign) direct investment will be about 5%, but if the epidemic continues to the end of the year, the whole year will be affected, which may reach 15%. "
Novel coronavirus pneumonia will cause an impact on the company's business, according to a survey by UNCTAD, 2/3 of the 100 largest multinational companies in the world. 41 companies issued a warning of profit reduction, which will also affect the reinvestment of these companies. In addition, nearly half of the world's 5000 largest companies lowered their profit forecasts, which were down about 9%. Large enterprises in developing countries are even more affected, with a 16% drop in earnings expectations.
Zhan Xiaoning said that although China will also be affected by the global investment environment, the epidemic will not change the fundamentals of China's attracting foreign investment, the main location advantages of China's attracting foreign investment remain unchanged and its attraction to foreign investment remains unchanged. "China's industrial base and the fundamentals of China's absorption of foreign investment have not changed. China's main location factors have not changed, so its attractiveness remains unchanged. "
Zhan pointed out that FDI is mainly determined by three factors, including policy, economic basis and investment facilitation. From a policy perspective, China's efforts to expand opening up will only grow. "China is constantly increasing its opening up and taking some new measures, including the innovation of foreign investment system and investment attraction innovation. That is to say, our location advantage is far superior to that of many countries, especially some countries that have potential competition with us to absorb foreign investment. For example, in developed countries, they are now showing some protectionism, while in China, on the contrary, they are increasingly opening up. "
Zhan Xiaoning said that China's economic volume is huge. No matter the growth rate is fast or slow, China's economic volume is constantly increasing, and per capita income is increasing, which is a visible trend. In terms of investment facilitation, China's infrastructure and human resource quality are constantly improving