The Chinese market is a must choose option! Multinational corporations are investing more in China and deepening their presence in the Chinese market

Release time:Apr 16, 2024 21:28 PM

CCTV News: On September 15th, the Ministry of Commerce released data showing that from January to August 2023, there were 33154 newly established foreign-invested enterprises in China, a year-on-year increase of 33%; The actual amount of foreign investment used was 847.17 billion yuan, a year-on-year decrease of 5.1%. Experts point out that the significant growth of newly established foreign-invested enterprises nationwide indicates the confidence of foreign investors in long-term investment in China.

There are two reasons for the year-on-year decrease in actual use of foreign investment

The relevant person in charge of the Ministry of Commerce stated that there were two main reasons for the year-on-year decline in the actual use of foreign investment nationwide in the first eight months.

The Chinese market is a must choose option! Multinational corporations are investing more in China and deepening their presence in the Chinese market

One is the slow recovery of the world economy and weak global cross-border investment. According to the 2023 World Investment Report of the United Nations Conference on Trade and Development, global foreign direct investment decreased by 12% in 2022 and still faces significant downward pressure in 2023. According to a report released by the Organization for Economic Cooperation and Development in July, it is estimated that global foreign investment will decrease by 25% year-on-year in the first quarter of 2023.

Secondly, the base for the same period in 2022 is relatively large. In the three years from 2020 to 2022, China overcame the overall downturn in global cross-border investment, the COVID-19 and other adverse effects, constantly increased efforts in foreign investment, and achieved sustained and stable growth in foreign investment. In 2022, the scale of foreign investment attracted by China has exceeded 1.2 trillion yuan, reaching a new historical high with an average growth rate of 8.6% over the past three years. In the first eight months of 2022, the actual amount of foreign investment used was also the highest in history during the same period.

Foreign investment is a normal market behavior with periodic fluctuations

The relevant person in charge of the Ministry of Commerce also stated that foreign investment is a market behavior, and periodic fluctuations are normal. We need to look at both scale and structure; We need to look at both the present and the future.

Quality improvement of investment attraction and growth in high-tech manufacturing industry in the first eight months

From January to August, the actual use of foreign investment in high-tech manufacturing increased by 19.7%, and the quality of investment attraction continued to improve. The newly established foreign-invested enterprises in China increased by 33% year-on-year, fully reflecting the confidence of foreign investors in long-term investment in China.

Multinational corporations say that the Chinese market is a "must choose" option

On September 14th, He Yadong, spokesperson for the Ministry of Commerce, stated that since 2023, many executives from multinational corporations have visited China intensively. They generally stated that the Chinese market is not an "optional" option, but a "necessary" option, and will continue to increase investment and deepen cultivation in the Chinese market.

China will continue to create an international first-class business environment

In August 2023, the State Council issued the Opinions on Further Optimizing the Foreign Investment Environment and Increasing the Attraction of Foreign Investment. Focusing on the prominent concerns of foreign-funded enterprises, a new batch of 24 targeted policy measures have been launched. The Ministry of Commerce will actively carry out the "Investment in China Year" series of activities, further deepen regular exchanges and communication with foreign-funded enterprises, and continue to create a market-oriented, legal, and international first-class business environment.

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