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China Records Massive Growth in Foreign Capital Despite Viral Outbreak: Report
China is set to become an investment for both foreign and local enterprises. Even though the country has a strict bureaucratic structure and tight investment laws, international companies still flood in to make use of China’s rich consumer-base and infrastructural advantages.
According to the Ministry of Commerce China’s report earlier in January, the actual amount of foreign investment in the country from January to October last year was CNY ¥752.41 billion. That’s a 6.6% increase year-on-year.
Among all sectors, the service industry and the high-tech industry have attracted foreign investment in higher volumes. In its entirety, the utilization of foreign capital in China is steady, with several large-scale projects ongoing at the time of writing.
Stable Growth this Year
The Ministry of Commerce has further improved the policies for the introduction of foreign investment in China. It is expected that more foreign enterprises will remain stable throughout the year.
Ministry officials held a press-conference talking to journalists about uplifting the country’s foreign investment landscape. This year’s performance was described as being “stable, abundant, and excellent” at the event.
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Zong Changqing, director of foreign investment, said that China’s actual implementation of external capital, in general, has maintained a steady growth this year. Specifically, from January to October, there were 33407 newly-established WFOE’s in China.
In total, the companies brought in capital worth RMB 752.41 billion, up 6.6% year-on-year. In October alone, 69.2 billion yuan was injected which represents an increase of 7.4% as compared to previous time periods.
Top Sectors: Service & High-tech Industries
Based on the figures, the highest amount of investment was injected into China’s well-developed service and high-tech industries.
Between January and October last year, the service industry took CNY ¥538.35 billion, up 13.5%, in foreign capital. On the other hand, the high-tech industry received around CNY ¥222.48 billion in external investment, marking an impressive increase of 39.5%.
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Moreover, the automotive and electronics manufacturing sector showed an increase of 5.5% this year – currently valued at 78.69 billion yuan in terms of foreign investment.
Moreover, the Yangtze River economic belt and its free trade zone have seen a significant increase in foreign investment.
Its eastern, central and western regions saw an increase of 6.8%, 6% and 5.2% year-on-year in the capital. In total, the entire Yangtze Economic Belt now amounts to CNY ¥368.3 billion in foreign investment. This figure amounts to almost 49% of the national total and an 8% increase year-on-year respectively.
Conclusion
China’s economy is now home to some of the largest organizations in the world. We’ve seen instances of the Chinese government providing “preferential” incentives to foreign enterprises to encourage capital injection.
What’s more, is that projections and analysts suggest that China’s new policy-making is bound to push Massive Inflow of Foreign Investment this Year in the country.
Despite having to face economic costs associated with the novel coronavirus pandemic, the country is still showing growth and the effects of the outbreak are going to be shortlived, researchers say.
Via XinhuaNet
