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FDI sees robust growth in first half

By ZHONG NAN | China Daily | Updated: 2022-07-30 08:05
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Employees work on the production line of a foreign-funded electronics manufacturing company in Rongcheng, Shandong province. [Photo by LI XINJUN/FOR CHINA DAILY]

China will make greater efforts to attract foreign investment and ensure national treatment for all overseas businesses in the second half of the year as the nation's economy is likely to rebound steadily despite challenges threatening global economic recovery, said government officials and analysts on Friday.

The nation saw robust growth of foreign direct investment in the January-June period as it surged 17.4 percent on a yearly basis to 723.31 billion yuan ($107.41 billion), said the Ministry of Commerce.

The government will continue to optimize the business environment, improve services for foreign investors, strengthen regular exchanges with foreign companies and business associations and actively respond to their needs, said Chen Chunjiang, director of the foreign investment administration department at the ministry.

While expanding the number of comprehensive pilot areas for the further opening of the service sector, the government will accelerate the revision of the industry catalog of sectors in order to encourage foreign investment, and guide foreign capital into fields such as high-end manufacturing and scientific innovation, as well as into central, western and northeastern regions, Chen said at a news conference in Beijing.

Rapid FDI growth can be seen as a powerful rebuttal to some foreign media's "FDI withdrawal" hype, and shows that short-term economic disruption caused by the pandemic won't undermine China's ability to attract global capital over the long run, said Bai Ming, deputy director of the international market research department at the Chinese Academy of International Trade and Economic Cooperation in Beijing.

Global companies prefer China due to its highly concentrated supply chains, enhanced protection of intellectual property, tight global links and lucrative domestic market, said Feng Yaoxiang, head of the trade and investment promotion department at the China Council for the Promotion of International Trade in Beijing.

During a meeting of the Political Bureau of the Communist Party of China Central Committee on Thursday, policymakers stressed the important role of reform and opening-up in boosting economic development. They said the country should create a sound policy and institutional environment for enterprises of different types of ownership.

Yang Tao, deputy director of the comprehensive affairs department of the Ministry of Commerce, stressed that the fundamentals of China's economy in terms of its strong resilience, ample potential, wide room for maneuver and long-term improvement will not change.

Foreign investment in China's high-tech manufacturing sector rose 31.1 percent on a yearly basis between January and June, while that in the high-tech services sector jumped 34.4 percent.

FedEx Express, a United States-based express delivery company said that it will put a new service center at Guangzhou Baiyun International Airport in Guangzhou, Guangdong province, into operation in 2027.

"This move demonstrates our confidence in China's economy and market growth as global trade recovers, and supports the country's efforts to advance the dual-circulation growth pattern with smooth supply chain services," said Eddy Chan, senior vice-president of FedEx Express and president of FedEx China.

Greg Holman, president of the China unit of Stryker Corp, a US-based medical technology provider, said: "Even though the COVID-19 pandemic has created temporary challenges in the second quarter, these do not change our commitment to China. We will open our China Innovation Center in Shanghai next year."

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