Shanghai Photo: iStock

The mindset expressing the view that China does not need any more foreign investment will slow down the country’s economic development, the 21st Century Business Herald reported, citing a specialist in cross-border trade and investment.

Since the opening of the Chinese economy in early 1980s, there has been several rounds of discussion about whether China should make proper use of foreign investment, said Wang Zhile, director of the Beijing New Century Academy on Transnational Corporations.

Fortunately, China did not shutter its economy and it continued to attract foreign capital as it sought to join the World Trade Organization, he said.

However, since China joined WTO in 2001, it seems that the country has lost the desire to attract foreign investment, Wang said.

This was partly because many people believed that globalization, together with the multinational giants, could undermine benefits to Chinese firms, he said. In fact, China has benefited greatly from the globalization trend.

Wang also said China should continue to welcome multinational firms and provide them a business-friendly environment.

In the long run, Chinese companies will also enjoy better treatment overseas, he said, adding that China is a country that has a lot of investments in foreign countries.