Why is investment in China growing positively?, Global investment decreased by 12%

At the 23rd China International Investment and Trade Fair, authoritative information reports such as the Chinese version of the 2023 World Investment Report and the China Foreign Investment Statistics Bulletin 2023 were successively released. The report shows that the scale of China's investment attraction has reached a new high, and the absorption of foreign investment continues to grow steadily in 2022. The investment in China by the European Union and ASEAN has increased by 95.3% and 9.5% respectively. During the China International Fair for Trade and Investment (CIFIT), the National Development Report on Chinese Enterprises was also released, and China's outward investment also achieved steady growth. The report released by the United Nations Conference on Trade and Development shows that global foreign direct investment in 2022 decreased by 12% compared to the previous year. What has been confirmed by the report released during the CIFIT? Against the backdrop of a 12% decline in global foreign direct investment, how can investment in China achieve positive growth? Let's first understand the content of these authoritative information reports.

The report shows that the actual use of foreign investment increased by 4.5% in 2022

According to the 2023 China Foreign Investment Statistics Bulletin, the scale of China's investment attraction has reached a new high, with stable growth in foreign investment absorption in 2022. The actual use of foreign investment for the whole year was $189.13 billion, an increase of 4.5%. In terms of RMB, it has exceeded 1.2 trillion yuan for the first time, and the high-tech industry has become an important growth point. The investment in China by the European Union and ASEAN increased by 95.3% and 9.5% respectively.

The Guidelines for Foreign Investment in China have added an introduction to investment promotion activities such as the "Investment in China Year", building bridges for domestic and foreign investment cooperation and expanding channels for feedback from foreign-funded enterprises. In addition, authoritative publications such as the "China Bilateral Investment Report 2023" and the "National Development Report of Chinese Enterprises" introduced the situation of Chinese enterprises conducting foreign investment cooperation, China's latest policies, and new advantages of opening up. They shared mutually beneficial investment cooperation practices for reference by all participants and jointly promoted international investment exchange and cooperation.

Oscar Felipe Rueda, Commercial Counselor of the Colombian Embassy in China: I believe it is very important to understand data on foreign direct investment in China. Once the data is mastered, a strategy can be formulated. Development is crucial for all countries, and such research reports will help China and the world better understand what policies and strategies should be formulated.

New foreign-invested enterprises established nationwide increased by 34% from January to July

Since the beginning of this year, the number of newly established foreign-funded enterprises in China has grown rapidly. According to data from the Ministry of Commerce, from January to July this year, there were 28406 newly established foreign-invested enterprises in China, an increase of 34%. The authoritative report released also mentioned China's latest policies and new advantages in opening up. Last month, the State Council issued opinions, proposing 24 targeted and high-value policies and measures to stabilize foreign investment from six aspects, including improving the quality of foreign investment utilization and ensuring the national treatment of foreign-invested enterprises. Efforts are being made to further optimize the foreign investment environment and increase efforts to attract foreign investment.

Countries willing to participate in China's development

Sharing the dividends of China's economic growth

Wu Sa, Deputy Director of the Institute of Economics at the Chinese Academy of Macroeconomics: I think at least this indicates two important pieces of information. The first is that countries around the world are increasingly valuing investment opportunities in China. In this round of global economic recovery, China has played an important role as an engine of global economic growth. In recent years, the contribution to world economic growth has been over 30%. China's vast market, enormous purchasing power, and thriving development opportunities have left enormous room for participation for countries around the world. Countries around the world also have a great willingness to participate in China's development and share the dividends of China's growth.

Secondly, the Investment and Trade Fair is a two-way investment conference, which also indicates that more countries hope that Chinese funds, technology, and talents can invest and start businesses in these countries, so that everyone can form a mutually beneficial and mutually beneficial situation for common development. China not only wants to do well in its own growth, but we also have a great willingness to contribute to the world's growth. We will share our relatively mature technology and more industrialized experience with countries around the world, especially developing countries and countries along the "the Belt and Road". Enable the entire world economy to embark on a healthier and faster path of recovery.

Actual use of foreign investment in high-tech manufacturing increased by 25.3% from January to July

Currently, the quality of investment attraction in China continues to improve. Since the beginning of this year, over a hundred executives from multinational corporations have visited China to examine the investment environment and seek new opportunities for investment cooperation; From January to July this year, the actual use of foreign investment in high-tech manufacturing increased by 25.3%, which was achieved against the backdrop of a global decline in foreign direct investment.

In July, the United Nations Conference on Trade and Development released the World Investment Report 2023, which showed that global foreign direct investment in 2022 decreased by 12% to 1.3 trillion US dollars compared with the previous year due to the Russia-Ukraine conflict, high food and energy prices, soaring public debt and other factors. Among them, foreign direct investment flowing into developed economies decreased by 37%. Against this backdrop, foreign direct investment entering China in 2022 increased by 4.5%, exceeding 189.1 billion US dollars. Most of them come from multinational corporations in Europe, with investment focused on manufacturing and high-tech industries. From January to July this year, the number of newly established foreign-invested enterprises in China increased by 34%. From the perspective of sources, actual investment in China by France, the United Kingdom, Canada, and Switzerland increased by 213.7%, 159.9%, 113.3%, and 61.2%, respectively. Global investment has decreased by 12%, while investment in China has achieved positive growth.

China's economy continues to recover

Enhance investment confidence of international enterprises

Wu Sa, Deputy Director of the Institute of Economics at the China Academy of Macroeconomics: Firstly, the Chinese economy has continued to recover, with an overall recovery and improvement, enhancing the investment confidence of international enterprises. Since the beginning of this year, compared to developed countries such as the United States and Europe, China's economic growth expectations have been continuously lowered. In the first half of the year, China's GDP grew by 5.5% year-on-year, ranking first among major economies in the world and becoming an important engine for promoting global economic recovery. Investing in China is to participate in and share the development opportunities brought by growth.

Secondly, China is accelerating the construction of a modern industrial system and is forming new comparative advantages. The high-end, intelligent, and green manufacturing industry is constantly deepening. More and more new products, represented by lithium batteries, solar cells, and electric passenger vehicles, are emerging. The high-tech industry has already taken an advantageous position in global competition, and a large number of new growth points with strong competitiveness are accelerating their formation.

At the same time, China's stable social situation, favorable business environment, sound industrial system, abundant talent reserves, and huge domestic market size all provide solid guarantees for international enterprises to invest.

Overall comparison shows that China has become and will increasingly become the most attractive investment hotspot in the world. Investing in China not only serves the domestic market well, but also enhances the comprehensive competitiveness of products, better targeting and serving the international market.