BUSINESS Foreign enterprises plan to increase investment in China

BUSINESS

Foreign enterprises plan to increase investment in China

China Daily

16:49, July 26, 2022

A teller counts and arranges dollar notes at an Agricultural Bank of China branch in Qionghai, South China's Hainan province. [Photo: China Daily]

More than 70 percent of German enterprises and over 60 percent of US companies plan to increase their investment in China, Yicai reported on Tuesday, citing the Chambers of Commerce from these two countries.

The relocation of the manufacturing industry and the transfer of the industrial chain are a normal economic phenomenon, which is the result of globalization and market mechanisms, said Yao Jun, deputy director of the Ministry of Industry and Information Technology's planning department.

Generally speaking, foreign companies' pace of investment in China has not slowed down, although some are promoting diversified business arrangements, Yao said.

In the Jan-May period of this year, China's actual use of foreign capital witnessed a 17.3 percent year-on-year increase to reach 564.2 billion yuan ($83.54 billion).

China remains the best investment destination for foreign investors and many well-known foreign companies have expanded their presence in China's low-carbon sector, according to reports by the American Chamber of Commerce in China and AHK Greater China, a part of the German Chambers of Commerce Worldwide Network.

Manufacturing is a key area of foreign investment and more foreign capital is actively investing in essential fields such as advanced manufacturing, high-tech, energy conservation and environmental protection.

From January to May this year, the actual use of foreign capital in the high-tech manufacturing industry increased by 32.9 percent year-on-year.

China will further open up the manufacturing industry to a higher level and actively create a market-oriented, law-based and international business environment featuring fair competition, Yao said.

The country will support foreign companies to invest more capital in China, particularly in advanced manufacturing and high-tech industries and accelerate the implementation of important foreign-funded projects.

Domestic enterprises are encouraged to strengthen international cooperation to optimize and refine cooperation projects in international production capacity and equipment manufacturing and jointly maintain the stability and smoothness of the global industrial and supply chains.

China will also promote the construction of manufacturing partnerships, the digital transformation of the industry and its international cooperation in green development, as well as establishing more communicating platforms for dialogues among relevant authorities across countries and regions.

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