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KPMG: China still the world's best investment destination

By Yu Hongyan (chinadaily.com.cn)
Updated: 2008-11-20 16:02

A survey by the accounting firm KPMG shows that China is still the world's No 1 investment destination, followed by the US, India and Singapore, according to Hong Kong's Singtao Daily.

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Covering 260 multinational companies in 12 economies across world, the survey is KPMG's first report stressing the influence of tax policy and population distribution on a corporation's locality.

The world leading accounting firm says that 74 percent of the companies interviewed hoped that local governments could provide flexible tax preferences and encourage companies to recruit overseas talents, so as to enhance their competiveness.

With the financial turmoil, governments should give weight to tax preferences and flexibility to attract more corporate investment, and companies are in the need of outstanding talent to improve their operations and competitiveness, said Barbara Forrest, head of KPMG China's Tax division.

She added that talents from the Chinese mainland are increasingly popular in multinational corporations, and with the world positive about China's economy companies are willing to enter the Chinese market with the assistance of such staff.

The survey took place from September to October. Future surveys will also trace companies' investment decisions over the next five years.