Foreign Companies Still Flock to China, Study Finds

A rare bit of positive economic news for China, from the International Herald Tribune, which reports that in Hong Kong, and on the mainland, is not slowing despite the financial crisis:

Many of the expansions being announced by foreign firms in recent months had been planned before the credit crunch worsened in September. Still, the fact that business for InvestHK and other consultants like Booz & Co. has not dried up altogether indicates that China and other Asian countries remain key regions for European and U.S. companies that want to expand.

“Business is holding up,” said Mark Michelson at InvestHK. “We get approached by many U.S. and European companies that feel there is not much of a future where they are, but that this is the place to be.”

Although China’s growth is slowing from the double-digit rates it enjoyed over the past few years, the expected 8 percent rise in gross national product next year still outpaces forecasts for Europe and the United States.