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Source: Changjiang Business Daily
Li Jie, a reporter from Changjiang Business Daily
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According to the latest data released by China's Ministry of Commerce a few days ago, from January to April this year, there were 16805 new foreign-invested enterprises across the country, an increase of 19% over the same period last year.1baccarat.2%; the amount of foreign capital actually used is 360.2 billion yuan, down 27% from the same period last year.1baccarat.9%. As China continues to open wider to the outside world, the attractiveness of the Chinese market to foreign investment continues to increase.
What is noteworthy is that in order to further expand opening up and attract foreign investment, relevant departments and local levels are still studying and introducing new policies. China's good investment environment and high-level opening up to the outside world have continuously enhanced the confidence of foreign-funded enterprises to invest in China.
A relevant responsible person of the Ministry of Commerce pointed out that with the continuous development of China's new quality productive forces and a series of policy effects of stabilizing the economy, promoting opening up, and attracting foreign investment, the conditions, environment and prospects for the development of foreign investment in China will become better and better.
Foreign-funded enterprises increase the layout of "falling" China
LG New Energy plans to invest US $800 million to increase battery capacity in China, Volkswagen announced that it will invest 2.5 billion euros to expand Hefei production and innovation center, and DHL will increase infrastructure investment in China to set up Shanghai New Energy vehicle Center of Excellence. Since the beginning of this year, foreign investment has made a lot of money in the Chinese market, and more and more foreign enterprises are looking for new cooperation opportunities in the Chinese market.
Data show that from January to April, there were 16805 newly established foreign-invested enterprises in China, with 360.2 billion yuan of foreign capital actually used, continuing the trend of relatively rapid growth of newly established enterprises since last year.
The head of the Foreign Investment Department of the Ministry of Commerce said that the attraction of foreign investment declined in the first four months compared with the same period last year, mainly due to the high base figure of last year. From January to April 2023, China attracted foreign investment of 499.46 billion yuan, the highest level in history. In addition, there is usually a process for foreign investment from the signing of the project contract, the registration of the company to the completion and commissioning of the project, in which foreign investment will continue to be funded with the progress of the project construction. The growth of the number of newly established enterprises has a certain "weather vane" role, which will support the arrival of capital in the future.
From the perspective of the structure of attracting foreign investment, foreign investment in China is constantly transforming and upgrading. From January to April this year, China's manufacturing industry actually used 103.69 billion yuan of foreign capital, accounting for 28.8 percent of the country's actual use of foreign capital, an increase of 2.8 percent over the same period last year. Foreign capital actually used in high-tech manufacturing industries totaled 45.73 billion yuan, accounting for 12.7 percent of the country's actual use of foreign capital, an increase of 2.7 percent over the same period last year. Among them, the actual use of foreign capital in medical equipment and instrument manufacturing, accommodation and catering industry increased by 126.1% and 65.1% respectively.
In terms of sources, investment in China by some developed economies is growing rapidly. According to the data, the actual investment in China by Spain, Germany and the Netherlands increased by 263%, 34.7% and 9.5% respectively in the first four months (including investment through free port).
On the whole, the basic trend of China's economic recovery and long-term improvement has not changed, and the magnetic attraction of the Chinese market to foreign investment continues to increase.
According to the National Bureau of Statistics, the total profits of foreign-funded industrial enterprises increased by 18.1% in the first quarter, higher than the national average (4.3%). The US management consulting firm Kearney recently released a report on the confidence index of foreign direct investment in 2024, showing that China's attractiveness as a cross-border investment destination in the next three years jumped from No. 7 in 2023 to No. 3.
It is worth mentioning that, benefiting from China's high level of open institutional dividend and the good prospect of sustained and stable economic growth, foreign institutions such as public equity, private equity and securities firms have also accelerated their efforts to "tap" the Chinese market since the beginning of this year. Private equity funds owned by international asset management giants such as Bofeng, KKR and Hanling Capital have successively landed in Shanghai, and Standard Chartered Securities has officially launched business in Beijing. In addition, the Asian Development Bank, Goldman Sachs, Morgan Stanley, Citigroup and Deutsche Bank have all raised their forecasts for China's economic growth in 2024.
Behind the data, a series of policy effects of attracting foreign investment in China are gradually emerging. The strong resilience and vitality of China's economy is also a strong guarantee for foreign-funded enterprises to cast a "vote of confidence" in the Chinese market.
New and greater efforts to attract foreign investment in multi-land policies
Recently, Shenzhen issued the "implementation measures for further increasing the attraction and Utilization of Foreign Investment", issued 20 specific measures to further increase the attraction and utilization of foreign capital, and offered "real money and silver" to reward foreign-funded enterprises and projects. Shenzhen clearly proposes to increase support for foreign investment projects in the manufacturing industry and reward manufacturing enterprises with a total annual increase of US $50 million or more in actual foreign investment between 2023 and 2027, with a maximum annual reward of 50 million yuan for individual enterprises. the cumulative maximum award is 150 million yuan.
In fact, with the exception of Shenzhen, various localities have recently introduced relevant measures in accordance with local conditions, continued to increase the intensity of opening up to the outside world, and launched a series of measures to stabilize foreign investment, including increasing incentives for attracting foreign investment and enhancing convenience. We will focus on encouraging foreign investment in high-tech industries and advanced service industries.
For example, Guangdong has issued a special plan with a maximum reward of 150 million yuan to encourage multinational corporations to set up headquarters; Henan has proposed to encourage existing foreign-funded enterprises to increase their capital by 100000 yuan for every 1 million US dollars increase in capital for foreign-invested enterprises. the maximum reward is 10 million yuan. The "implementation Plan for further optimizing the Environment for Foreign Investment and increasing efforts to attract Foreign Investment" issued by Chongqing a few days ago puts forward a total of 24 and 51 specific measures in six aspects, including docking with high international standards of economic and trade rules, strengthening upward docking, and so on.
Since the beginning of this year, a series of policies such as the Action Plan for solidly promoting High-level opening up to the outside World to attract and utilize Foreign Investment have been introduced one after another. the Ministry of Commerce, the National Development and Reform Commission and other departments continue to make concerted efforts in expanding market access, strengthening investment promotion, optimizing the business environment, and docking with high international standards of economic and trade rules.
Stable and predictable policies have enabled more and more foreign-funded companies to invest in China, which also reflects China's good performance in attracting foreign investment and the continuous optimization of the investment structure. According to a survey conducted by the China Council for the Promotion of International Trade, in the first quarter of this year, more than 90% of the foreign-invested enterprises surveyed were "satisfied" or above with nine indicators such as "obtaining business premises" and "market access"; more than 70% of the enterprises are optimistic about the development prospects of my country's market in the next five years., a month-on-month increase of about 3.8 percentage points; more than half of the enterprises believe that the attractiveness of my country's market has "increased", an increase of about 2.9 percentage points month-on-month.
The Changjiang Business Daily reporter noticed that there are more measures to attract foreign investment "on the way", and many departments and localities are planning to introduce new policies.
The National Development and Reform Commission recently revealed that it has started the revision of the catalog of industries encouraging foreign investment with relevant departments. The revision of the national catalog will continue to use manufacturing as the key direction to encourage foreign investment. At the same time, it will promote the integrated development of service industry and manufacturing, and increase support for advanced manufacturing. Support in industries, high-tech and other fields.
The Ministry of Commerce also stated that it will introduce relevant supporting measures to attract foreign investment, and will continue to make efforts in expanding access, investment promotion, and strengthening services to continuously enhance enterprises 'sense of gain. We will also work with all parties to implement the Foreign Investment Law and its implementing regulations, comprehensively protect the national treatment of foreign-funded enterprises, and create a world-class business environment.