China is reaffirming its status as a premier destination for foreign investment, drawing global attention with its robust economy and strategic policy initiatives.
At the recent Two Sessions, China’s government outlined a series of policy directions aimed at attracting foreign investment, underscoring the nation’s commitment to economic globalization. Despite global economic challenges and a complex international landscape, China continues to be a beacon for investors worldwide.
In 2023, China attracted over one trillion yuan in foreign investment, marking the third-highest level in its history. The establishment of 53,766 new foreign-invested enterprises represented a significant year-on-year increase of 39.7%, reflecting strong confidence from the global business community in China’s future development.
Investment has notably increased in high-tech industries and manufacturing sectors. The proportion of foreign investment in high-tech industries reached 37.4%, while investment in manufacturing rose to 27.9%. These figures indicate a shift towards more advanced sectors, aligning with China’s strategic economic goals.
Despite challenges such as the global pandemic and external investment restrictions imposed by some countries, China’s economy is showing signs of robust recovery. Early 2024 data indicates a significant improvement, with the actual use of foreign capital growing by 20.4% month on month in January. High-tech manufacturing saw a surge of 40.6%, accounting for 34.7% of the total foreign capital utilized.
To further enhance its appeal to foreign investors, the Chinese government has implemented policies to expand market access, strengthen policy support, and optimize the business environment. Since the introduction of the “24 Measures to Attract Foreign Investment” last year, over 60% of the policy measures have been implemented or are progressing well, receiving widespread acclaim from foreign enterprises.
On March 19, the State Council announced the “Action Plan to Steadily Promote High-level Opening up and Make Greater Efforts to Attract and Utilize Foreign Investment.” This plan addresses current challenges in attracting foreign investment by introducing targeted measures. These include issuing a negative list for cross-border service trade, preparing to release a new version of the negative list for foreign investment access, and reducing restrictions in sectors such as healthcare, telecommunications, banking, insurance, and bond funds.
The government has also expanded the “Catalogue of Industries Encouraged for Foreign Investment“, providing greater support for advanced manufacturing and other key areas. In the digital economy, new regulations on promoting and regulating cross-border data flows aim to ensure data security while facilitating the free and lawful flow of data.
Looking ahead, as China’s economy continues to recover and open up further, it is expected to maintain its strong attraction for global investors. Foreign enterprises are encouraged to seize these opportunities and collaborate with China in building a shared future for humanity.
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China remains 'paradise' and 'high ground' for foreign investment
cgtn.com
