BEIJING: China’s vast market size and complete supply chain, combined with a series of policies focused on stabilising the economy and enhancing openness, will further brighten conditions for attracting foreign investment, say government officials and heads of multinational corporations.

Foreign direct investment (FDI) in China reached 215.09 billion yuan in the first two months of this year, dropping almost 20% year-on-year (y-o-y).

In the same period, the number of newly established foreign-invested enterprises in China reached 7,160, up nearly 35% year-on-year, data from the Commerce Ministry showed.

In terms of scale, China’s actual use of FDI reached a record high of 268.44 billion yuan during the January-February period last year. Although the figure fell this year, it still is the third-highest in the past decade, said the head of the ministry’s department of foreign investment administration in an online statement.

From a structural perspective, China’s high-tech industry saw the establishment of 1,865 new foreign-invested companies in the first two months, up 32% y-o-y. The actual use of FDI in this sector was 71.44 billion yuan, accounting for 33% of the country’s total, up 1.2 percentage points compared to the same period of 2023.

The commerce official said these figures fully demonstrate that as China continues to promote high-quality economic development, FDI is also undergoing continuous transformation and upgrade.

FDI from France, Spain, Australia and Germany in China showed remarkable growth in the first two months, increasing by 586%, 399%, 144.5% and 20%, respectively. These figures highlight the varying levels of confidence and interest of different countries in the Chinese market.

During his meeting with a number of heads of multinational corporations, including Tim Cook, chief executive of of Apple Inc, Ola Kallenius, chairman of Mercedes-Benz Group AG, and Enrique Lores, president and chief executive of HP Inc, in Beijing last Thursday and Friday, Chinese Commerce Minister Wang Wentao said that China is committed to fostering high-quality development through openness and ensuring quality service support for foreign businesses.

China will consistently establish a top-tier business environment characterised by market orientation, legal governance and international standards, said Wang.

Speaking ahead of the 2024 China Development Forum, which kicked off in Beijing yesterday, the commerce minister stressed that China’s comprehensive advancement of Chinese modernisation, along with its focus on developing new high-quality productive forces and promoting the high-end, intelligent and green development of industries, will provide global companies with expanded growth opportunities.

Underscoring the unwavering commitment of Mercedes-Benz to the development of electric vehicles, Kallenius asserted that the German automaker is dedicated to substantially increasing its investments in China.

“Protectionism is a wrong path. Market openness, on the other hand, leads to healthy competition, which catalyses the expansion and advancement of the industry,” he said, adding that Mercedes-Benz is keen on fortifying its partnership with the Chinese automotive industry, playing a proactive role in dismantling trade barriers and ensuring a level playing field for fair competition.

 - China Daily