The increase in FDI confirms the country’s economic attractiveness

Employees work on the production line of a foreign-funded electronics company in Hai’an, Jiangsu Province. [Photo by Zhai Huiyong/for China Daily]

Foreign direct investment in China rose 17% year-on-year to 798.33 billion yuan ($117.56 billion) in the first seven months of this year, indicating that the country’s ability to attract capital is intact despite the challenges that threaten the recovery of the global economy. , experts and international business leaders said Thursday.

With its highly concentrated supply chains, close global ties and thriving domestic market, China has seen its actual use of foreign capital increase, the commerce ministry said.

Although supply chains in the Yangtze Delta region were disrupted by the COVID-19 pandemic in the second quarter, China remained a growth engine for multinational companies, and the government is committed to doing of the country a place where multinationals can “dare to invest”. , said Zhang Yongjun, a researcher at the China Center for International Economic Exchanges in Beijing.

FDI inflows into China will be stable this year, and the country’s ability to maintain consumer price stability and facilitate global supply chain operations will strengthen the stabilization and recovery of the global economy in the coming years. years to come, he said.

FDI inflows in the services sector reached 598.92 billion yuan between January and July, up 10 percent year on year. The growth rates of high-tech manufacturing and high-tech services were 33 and 31.8 percent, respectively, said Shu Jueting, spokesperson for the ministry, at a press briefing held online Thursday.

Ministry data showed that investment from South Korea, the United States, Japan and Germany rose sharply during the seven-month period, with annual growth rates reaching 44.5 respectively. %, 36.3%, 26.9% and 23.5%.

Bai Ming, deputy director of international market research at the Beijing-based Chinese Academy of International Trade and Economic Cooperation, said these facts show the strong will of foreign investors to continue investing heavily in China.

“The rising figures of FDI in China contradict earlier reports that companies from some developed countries are pulling out of China and shifting their investments to their home markets and other economies such as Vietnam and India,” he said. he said, adding that business areas including new energy, consumer, high-end manufacturing and services will remain hotspots for global capital.

Yang Tao, deputy director general of the Department of Global Affairs of the Ministry of Commerce, reiterated that the fundamentals of the Chinese economy – strong resilience, vast potential, wide room for maneuver and long-term improvement – will not change.

In addition to planning to increase its number of stores from about 3,000 this year to 6,000 in 2026 across China, Skechers, an American athletics, footwear and apparel company, will commission the second phase. of its Taicang logistics center in Jiangsu province in the fourth quarter of 2024, with a total investment of 1.65 billion yuan.

“We are confident about the Chinese market,” said Willie Tan, CEO of Skechers China, South Korea and Southeast Asia. The company will continue to strengthen its wide range of products for all age groups, as China has become a cradle to foster “many new consumption scenarios, products and services in the sports and health industry”, Mr. Tan said.

Intuitive Surgical Inc, another US-based robotic surgical systems maker, announced earlier this month that it would invest more than 700 million yuan to build a manufacturing and innovation base in Shanghai. The base will help expand access to robot-assisted surgery to more patients in China.

Gary Guthart, CEO of Sunnyvale, a California-based company, said Intuitive’s growth in China is in line with the government’s Healthy China 2030 initiative. The company’s new facilities are expected to be operational in Shanghai in 2025 and will produce the da Vinci XI surgical robots for the Chinese market.

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