China is interested in expansion. The nation is making the decision to focus most of its expansion efforts on Asian nations, including Singapore. At this point, Singapore attracts more Chinese investment than America. The USA used to be the number-one choice for Chinese investment, but it’s lost its top position to the island city-state of Singapore. This is good news for Singaporeans and bad news for Americans.
Another key business development in Singapore is the fact that Amazon is planning to enter the market in Singapore. Economies which are developed are preferred options for investment from China. However, economies which are still developing, but expected to experience big growth, also appeal to Chinese investors. Right now, Singapore is the number one investment destination for China. The USA is in second place, Hong Kong is in third place, Malaysia is in fourth place and Australia is in fifth place.
China Is Participating in E-commerce
It’s important to note that China is also participating in electronic commerce. Chinese e-commerce firms, such as Tencent and Alibaba, are big and successful and China is anticipated to remain a powerful player in this competitive and growing niche. As well, China has plans to invest in tech, including renewable energy and electric vehicles.
What About the “One Belt” Plan?
All of these new investments and initiatives are linked to China’s “One Belt” plan. It’s the country’s road map for becoming a key economic power in the foreseeable future. The One Belt plan is sparking new investment in a range of nations, including Thailand, Malaysia, Kazakhstan and Iran.
Economies which are classified as developing offer premium growth potential. China is betting on these developing economies. It wants to use investment in them in order to boost its own economic strength.
However, China is not without competitors. America is a chief rival. The new countries have been at odds recently. This is probably why China has been investing elsewhere more often. Singapore is the preferred alternative to investment in America.
Pakistan is another nation which receives a lot of Chinese investment. Pakistan is having problems with India, and this means that China is less interested in doing business with India. China stands with Pakistan. For this reason, India has become an investment destination which is less appealing to the Chinese.
The USA Is Still Powerful
While America has lost position to Singapore, the USA is still an important destination for Chinese investment.
Singapore is getting a loss of press these days because it’s becoming stronger economically. Its fintech sector is booming, the country’s tax policies are favorable to foreign investors, including China, and Brexit may cause a lot of offshore investors to put their money into Singapore, rather than the UK.
In Singapore, economic growth is expected to rise by two to four percent this year. A lot of the growth is related to Chinese investment. China’s One Belt initiative may end up being the key to Singapore’s future economic prosperity, or an important facet of future economic growth.
About the Author
Morris Edwards is a content writer at CompanyRegistrationinSingapore.com.sg, he writes different topics like Singapore unveils major investments into deep tech startups and research, Top Digital Marketing Strategies for the Small Business and all topics related to Singapore Economy, and if you want to know more about Company Registration in Singapore visit our website.
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