China’s Inbound Foreign Investment Continues to Surge Amid Global Economic Challenges
Foreign investment plays a pivotal role in a nation’s development, fueling enterprise growth, creating job opportunities, and elevating living standards. By introducing new technologies, management practices, and expertise, foreign investment fosters innovation and enhances the productivity of local industries and talent. As a resilient economic powerhouse, China exemplifies this trend, continuing to attract significant foreign direct investment (FDI) despite global economic uncertainties.
International investors’ confidence in China has been steadily increasing. From 2019 to 2021, China set consecutive records for incoming foreign investment. In the first eleven months of 2022, FDI in China surpassed a record high of 1.16 trillion yuan (approximately $164.28 billion). This momentum continued into 2023, with 41,947 foreign-invested enterprises established from January to November, marking a 32.1 percent year-over-year increase.
China’s ability to draw substantial foreign investment amid worldwide economic challenges is attributed to several factors. Its strategic position as a global manufacturing hub and trading center, coupled with pro-business policies, makes it an attractive destination for investors. Robust supply chains, a favorable business environment, sustained economic growth, and sound legal and regulatory frameworks further enhance its appeal.
Ongoing reforms aimed at opening up the economy have played a significant role. Measures such as expanding visa-free entry, reducing the negative list for foreign investment, offering favorable tax rates, and investing in infrastructure development have created a more welcoming environment for foreign enterprises. Strong policies supporting the private sector, efforts to bolster macroeconomic policy coordination, and initiatives to strengthen international industrial specialization and cooperation have positioned China as a compelling choice for FDI inflows.
As China continues to enhance its market-oriented, law-based, and international business environment, it remains well-positioned to attract global investors. The nation’s commitment to innovation, openness, and economic cooperation underscores its role as a key player in the global economy and suggests that its growth momentum in inbound foreign investments will persist.
Reference(s):
China's growth momentum in inbound foreign investments will continue
cgtn.com
