Foreign Enterprises Show Increased Optimism in China’s Economic Prospects
Foreign-funded enterprises are expressing growing optimism about China’s economic development. Since the beginning of the year, as China’s economy continues to rebound and improve, global multinational companies have shown a notable increase in willingness to invest in the Chinese market.
According to the Ministry of Commerce, the first quarter of 2024 saw the establishment of 12,000 new foreign-funded enterprises in China, marking a 20.7% increase compared to the same period last year. The inaugural “Invest in China” event attracted over 140 representatives from foreign companies and business associations across 17 countries and regions. Similarly, the Global Trade and Investment Promotion Summit 2024 registered nearly 150 foreign institutions from 33 countries and regions, reflecting the widespread confidence of the global business community in China’s economic prospects.
Qualitative Improvements in Foreign Investment Utilization
China continues to see qualitative improvements in its utilization of foreign investment. Statistics from the Ministry of Commerce indicate that in 2023, the proportion of foreign investment absorbed by high-tech industries in China rose by 1.2 percentage points compared to 2022. In the first quarter of 2024, foreign investment in high-tech manufacturing reached 12.5%, a year-on-year increase of 2.2 percentage points.
In recent years, an increasing number of foreign-funded enterprises have participated in building China’s advanced industrial and innovation chains. They have expanded their roles from processing and assembly to high-value-added component manufacturing, research and development, and other areas. Emerging industries such as new energy vehicles have become new growth points for foreign investment.
Collaboration in the New Energy Vehicle Industry
The year 2023 witnessed vigorous development in China’s new energy vehicle industry, with the nation’s automobile exports ranking first globally for the first time. In the new energy vehicle industrial chain, large multinational companies bring technological advantages in areas such as vehicle-mounted integrated circuits and electronic control systems. These complement Chinese companies’ strengths in power batteries and other fields, jointly contributing to the world’s most efficient green industrial chain.
Reference(s):
cgtn.com
