China’s Ministry of Commerce (MOFCOM) announced on Wednesday that foreign investment in the country remained stable during the first half of the year. The number of newly established overseas enterprises saw rapid growth, increasing by 35.7 percent with 24,000 new foreign-invested firms. However, the actual use of foreign direct investment (FDI) amounted to 703.7 billion yuan ($97.6 billion), showing a decline of 2.7 percent year-on-year.
Despite various economic pressures faced by major FDI source countries, China’s attraction for foreign investors remained strong. The increase in the number of new foreign-funded enterprises demonstrates foreign investors’ confidence in China’s growth prospects and favorable investment environment.
Developed countries continued to invest capital in China, with France experiencing a surge of 173.3 percent, the UK growing by 135.3 percent, Japan’s investment increasing by 53 percent, and Germany’s rising by 14.2 percent, according to Vice Minister of Commerce Guo Tingting.
The Chinese market’s appeal lies in the opportunities and potential for growth, particularly for companies from countries like France and the UK. Executives of multinational corporations have been visiting China to explore investment possibilities and cooperation opportunities. They believe that China’s massive development opportunities are not optional but mandatory for their growth strategies.
For instance, Schneider Shanghai Power Distribution Electrical Appliance Co. recently completed the third phase of its factory, showcasing their confidence in China’s market. The “zero-carbon factory,” built by Schneider Electric, is expected to increase overall production capacity by 30 percent.
China’s FDI rose by 6.3 percent in 2022, while global cross-border investment experienced a 12 percent decline. The actual use of FDI reached 1.2 trillion yuan, showing an 8 percent increase, according to MOFCOM official Zhu Bing.
Looking ahead, Zhu emphasized that multinational corporations plan to continue visiting China in the second half of the year, and MOFCOM will provide maximum convenience for their inspections of the investment environment. China will also formulate policies to attract more foreign investment, expand market access, and optimize the business environment, aiming to address foreign enterprises’ concerns and requirements in a timely manner.
China’s proactive measures to attract foreign investment and strengthen communication with foreign enterprises and chambers of commerce reflect the country’s commitment to fostering a conducive and supportive environment for international investors.