China has achieved remarkable results in stabilising foreign investment since the beginning of this year, reported Securities Daily Wednesday quoting an official from the National Development and Reform Commission (NDRC), China’s top economic planner.
Liu Xiaonan, Head of the Department, Foreign Capital and Overseas Investment with NDRC, at a news conference held on Wednesday, said that the foreign investment utilised by China has increased with improved structure and foreign-funded firms in China have seen increase in profits, showing confidence in the Chinese market.
To be specific, from January to July this year, China attracted 100.74 billion U.S. dollars of foreign investment, up 30.9 per cent year on year, with 7.12 billion U.S. dollars going into high-tech manufacturing, up 34.6 per cent and 25.15 billion U.S. dollars to high-tech services, up 40.6 per cent.
During this period, the operating revenue and profits of foreign funded firms above designated size in China respectively registered 15.94 trillion yuan and 1.33 trillion yuan, an increase of 21.6 per cent and 46 per cent year on year, significantly better than that in the same period of 2019.
The Chinese market has become a main driver for the performance growth of many renowned multinationals.
According to a survey by the European Union Chamber of Commerce in China, 60 per cent of the European-funded firms would expand their business in China, eight percentage points higher than that in 2020.
A survey by the American Chamber of Commerce in China shows that 81 per cent of U.S.-funded companies expect a positive growth in the operating income in the Chinese market, five percentage points higher than that in 2020 and 66 per cent of U.S.-funded companies plan to increase investment in China this year, three percentage points higher than that in 2020.
According to a white paper on the Chinese economy and Japanese enterprises in 2021, 92.8 per cent of Japanese companies in China would not adjust their production bases due to the spread of COVID-19 and changes in the trade environment.
Xiaonan, said that the whole foreign companies are optimistic about the prospects of the Chinese economy, recognise China’s business environment, and have confidence in investing in China.
