Economic rationale for the investment attractiveness of China at present

Economic Annals-ХХI: Volume 163, Issue 1-2, Pages: 35-40

Citation information:
Ziyadin, S., Suieubayeva, S., Kabasheva, N., & Moldazhanov, M. (2017). Economic rationale for the investment attractiveness of China at present. Economic Annals-XXI, 163(1-2), 35-40. doi: https://doi.org/10.21003/ea.V163-07

Sayabek Ziyadin
D.Sc. (Economics),
Professor,
Kazakh University of Economics, Finance and International Trade
7 Zhubanov Str., Astana, 010005, The Republic of Kazakhstan
ertis_economika@mail.ru
ORCID ID: http://orcid.org/0000-0001-7219-1545

Saltanat Suieubayeva
PhD (Economics),
Associate Professor,
Theoretical and Applied Economics Department,
D. Serikbayev East Kazakhstan State Technical University
69 A. K. Protozanov Str., Ust-Kamenogorsk, 070004, The Republic of Kazakhstan
Suyeubaeva@mail.ru
ORCID ID: http://orcid.org/0000-0002-0290-6290

Natalya Kabasheva
PhD (Economics),
Associate Professor of Finance Department,
JSC «Academy of Finance» of The Ministry of Finance of The Republic of Kazakhstan
11 Sh. Ualikhanov Str., Astana, 010011, The Republic of Kazakhstan
ORCID ID: http://orcid.org/0000-0002-7098-0185

Marat Moldazhanov
PhD (Economics),
Assistant Professor,
Finance and Accounting Department,
Kazakh Humanitarian Juridical Innovative University
11 Lenin Str., Semey, 070000, The Republic of Kazakhstan
ORCID ID: http://orcid.org/0000-0003-0872-5797

Economic rationale for the investment attractiveness of China at present

Abstract. The authors consider the current economic potential of China, which is one of the largest recipients of foreign direct investments in the world and plays a leading role in the world trade. China is among the largest recipient as well as exporters of foreign direct investments in the world. In 2015-2016, there was a further increase in the number of foreign investment projects being implemented in China, although overall growth in FDI has been declining since 2011. It should be noted that starting from 2010, the tendency of exceeding the volumes of Chinese investments in the EU over EU’s investments in China remains.

Factors of China’s investment attractiveness have been singled out and analysed, namely: weakening of the Yuan; stimulation of domestic consumption and investment; preservation of a relatively low level of domestic prices in relation to prices in the USA and among the leading Asian exporters of industrial products; harmonization of the country’s legislation with WTO requirements.

The results of the analysis of GDP growth rates of China, USA and Kazakhstan for 2011-2015 show that China’s GDP growth rates are almost five times higher than Kazakhstan’s ones, and three times higher than USA’s ones. It is advisable to agree with the forecasts concerning the preservation of the growth rates of the Chinese economy by 6-7% annually until 2030 if the current trends of the world economic development remain.

Keywords: Investments; Import; Export; Workforce; Trade; China; The European Union; USA; Kazakhstan

JEL Classification: F14; L51; M30; N15; Q10

DOI: https://doi.org/10.21003/ea.V163-07

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Received 8.10.2016