A teller counts and arranges dollar notes at an Agricultural Bank of China branch in Qionghai, Hainan province. [Photo/China Daily]
BEIJING – China has retained its strong appeal to foreign businesses, with capital inflows continuing to grow steadily in the first 10 months of this year despite gloomy investment sentiment around the globe.
Foreign direct investment (FDI) in the Chinese mainland, in actual use, expanded 14.4 percent year-on-year to nearly 1.09 trillion yuan in the first 10 months of 2022, the Ministry of Commerce said Thursday.
In US dollar terms, the inflow went up 17.4 percent year-on-year to $168.34 billion.
“The double-digit increase is no easy feat, as it is achieved on last year’s high base,” said Lu Hongyan, a researcher with the Chinese Academy of International Trade and Economic Cooperation.
While China witnessed a record-high FDI of nearly 1.15 trillion yuan last year, the influx in the Jan-Oct period this year had already approached the full-year figure of 2021.
Given COVID-19 flare-ups, the Ukraine crisis and weak cross-border investment globally, the robust FDI growth in China proved foreign investors’ confidence in the country thanks to its complete industrial system, super-large market, stable society and long-term sound economic fundamentals, analysts said.
In the first 10 months, the service industry saw FDI inflow jump by 4.8 percent year-on-year to 798.84 billion yuan, while that of high-tech industries surged by 31.7 percent from a year earlier.
Specifically, FDI in high-tech manufacturing rose 57.2 percent from the same period a year ago, while that in the high-tech service sector surged 25 percent year-on-year.
The broad development space in China’s high-tech and service industries has become an important driving force for investment increases, Lu said.
BMW Group’s joint venture in China will invest 10 billion yuan into a new battery production project in northeast China’s Liaoning Province. Global healthcare giant Novo Nordisk plans to spend 400 million yuan on a new company in Shanghai. Schneider Electric will set up an automation research and development center in Wuxi, east China’s Jiangsu Province.
Figures and facts show that China, with its wider opening-up, remains a popular destination for foreign investment.
In a world plagued by the economic downturn and rising protectionism, China will stay committed to deepening reform and opening-up. A China marching toward modernization will bring more opportunities to the world and inject stronger momentum for international cooperation.
Foreign businesses will enjoy greater opportunities in China’s enormous markets, institutional opening-up and deepened international cooperation, Vice Minister of Commerce Sheng Qiuping has said.