China still strong magnet for foreign investment: experts-Xinhua


BEIJING, Feb. 16 (Xinhua) — China stays a powerful magnet for overseas investment in a pandemic-jolted planet, as exposed by the most up-to-date info, and specialists think the development will carry on thanks to the country’s continued opening-up and enhanced business enterprise natural environment.

Following hitting a record significant final year, overseas immediate expense (FDI) into the Chinese mainland, in true use, expanded 11.6 percent 12 months on calendar year to 102.28 billion yuan in January, the Ministry of Commerce (MOC) has mentioned. In U.S. greenback conditions, the influx went up 17.6 % to 15.84 billion dollars.

The progress final thirty day period was the quickest and the first double-digit improve for the very same period of time given that 2016.

Authorities called the effects really hard-gained and explained they reflected China’s undented attraction for overseas money amid exterior uncertainties.

Very last year’s robust FDI momentum sustained into this 12 months as world funds flows accelerated and domestically the country’s steady financial fundamentals, improved enterprise natural environment and new foreign-financial investment legislation reassured international traders, reported Zhang Jianping with the MOC’s investigate institute.

A the latest MOC survey showed that 94.9 percent of more than 3,000 overseas businesses working in China have a largely optimistic outlook.

China has ramped up attempts to more open up the overall economy. Shortened destructive checklist for foreign investment arrived into force on Jan. 1, with off-restrict items slash to 31 from 33 a 12 months in the past. Notably, the overseas funds cap in the automobile industry was removed, and manufacturing constraints in pilot cost-free trade zones ended up also lowered to zero.

In January, foreign expenditure in the service business went up 12.2 percent yr on calendar year, even though the influx to high-tech industries surged 26.1 p.c.

Liu Xiangdong, a researcher with the China Heart for International Financial Exchanges, reported the swift expansion in higher-tech and assistance investment decision mirrors an at any time optimized economy and the new critical job of overseas funds in the country’s economic landscape.

Hunting forward, though the pandemic will even now weigh on the global economy, specialists imagine China’s FDI inflow can retain the impetus this calendar year inspite of the large equivalent base in 2021 and the risk of softened transnational financial commitment activities close to the earth.

MOC spokesperson Shu Jueting has explained China will additional grow its significant-degree opening-up, enrich its services for international-funded companies and assignments, and make much more efforts to optimize the enterprise atmosphere in 2022.

The ministry will guideline extra international funds to spend in emerging fields, including sophisticated producing, contemporary solutions, superior-tech, power conservation, environmental protection and the digital economic system, Shu explained.

Element of the country’s FDI impetus will also occur from the fewer tapped central and western regions, which saw FDI inflows up considerably by 46.2 % and 42.2 percent, respectively, in January.

International businesses investing in individuals parts can have a lot reduced working prices and enjoy several coverage supports, this kind of as tax breaks, Zhang claimed, stressing that there is big prospective for boosting international expense. 

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