China remains top foreign investment destination
Foreign investment appetite remains but more certainty from clearer rules and
regulations willhelp businesses invest in opportunities arising from China's economic transition, said DennisNally, chairman of professional services group PriceWaterhouseCoopers International Ltd.
"When there are unclear issues out there, whether it is regulation, taxes or rule of law, businessesand investments will move to where there is more certainty," Nally said.
"The sooner the government can provide that kind of certainty and clarity to facilitate the transitionto the "New Normal", the sooner businesses will gain the confidence to make those kinds ofnecessary investments," he said. Despite concerns over the slowdown, Nally said there is still significant global interest to invest inChina because the attributes that gave rise to foreign direct
investment in the last several years,such as an emerging middle class, have not changed.
That sentiment is backed up by a PwC report released earlier this year. Although China lost its spot as CEOs' most important overseas growth market
to a resurgent USeconomy, the country remained second.
For PwC, China's transition, particularly towards more outbound activities, provides a lot ofoptimism for the firm's future growth.
"As companies transform themselves, they will look for our help and advice, whether it is inchallenges such as international acquisitions or developing their businesses abroad, which areall opportunities for us," said Nally. China's nonfinancial outward direct investment totaled $102.9 billion in 2014, up 14.1 percentfrom a year earlier.
Nally said that the government's long track record of managing the economy gives a lot of peopleconfidence that China will continue to grow at a healthy rate, which is crucial to the globaleconomy.
The Chinese economy's target growth of seven percent for 2015 will contribute to around onepercent of total global GDP growth this year, according to PwC estimates.