Chinese President Xi Jinping aggressively encouraged FDI into China at his appearance at Davos this year. But many Swiss companies are experiencing an environment of increased regulation, restrictions and a perception that local companies are being favoured. Is it getting easier or harder to invest in China?

Last year, China was the world’s third largest recipient of foreign direct investment with an inflow of Rmb813 billion (US$118 billion). This was despite the annual increase falling to 4.1% year on year compared with a 6.4% growth in 2015, but when measured in US dollar terms it actually fell. China anticipates strong FDI flows to continue, with President Xi saying earlier this year at the World Economic Forum in Davos that he expected 600 billion dollars of foreign investment over the coming five years. Does the experience of Swiss companies investing in China back up this optimism?

Mark Andrews has written about everything from Japanese houses to heli hikes on New Zealand glaciers, test drives of Chinese cars to bar and restaurant reviews. He currently specialises in travel articles and reviews of Chinese cars plus articles about the Chinese auto industry.