Cleaner political environment

Anti-corruption campaign can attract foreign capital and technology and help domestic enterprises go overseas

China has scored eye-catching achievements in absorbing foreign capital over the past decades and it is now one of the largest foreign capital recipients in the world. However, improvements are yet to be made to expand the country's space for the inflow of foreign capital, so as to raise the quality and make the inflow sustainable. Looking at other countries shows the inflow of foreign capital is closely related to how clean a country is. The cleaner the political system, the more foreign investment a country will absorb. The more corrupt the political system, the less foreign investment a country receives.

According to the corruption lists published by some international organizations, China's corruption is ranked at an intermediary level. Although China is not one of the most corrupt countries in the world, there is still a gap between it and those countries at the top of the rankings. This has to some extent compromised the country's attractiveness to foreign capital. Signs have emerged that China lacks the potential to attract long-term foreign capital, with most of the inbound capital short and middle term that can exit at any time.