A.T. Kearney chairman optimistic for multinationals in Chinese market

CHINA's latest foreign investment law will enable more multinational companies to engage in the Chinese market, and Alex Liu, managing partner and chairman of A.T. Kearney sees positive signs in CHINA's further economicliberalization.

CHINA is pressing ahead with its policy reforms and focusing on infrastructure development. Liu said multinationals would likely benefit from CHINA's further opening-up in value-added sectors and knowledge sectors like financial services and high-tech.

The prospect of liberalizing fast-growing sectors creates macro opportunities for multinationals.

Smart cities is an area that Liu suggested multinational companies to invest in since the technology is booming and e-commerce and mobile payment are already flooded with investors in the Chinese market.

But challenges cannot be belittled. Liu noted that CHINA has already built strong domestic competitors, especially companies with a global footprint.

"They are innovating in terms of services level and taking market share from traditional multinational companies… if you look at the last 10 or 15 years, 80 percent of multinational companysectors have lost 10 to 15 percent share," Liu said.

Liu is still optimistic about investing in the Chinese market. He said the recent interest in opening-up and liberalizing the types of partnership and licenses with global companies could provide the best solution for Chinese consumers.