China facing pressure in attracting foreign investment
May 4, 2021 Category China News Round-up, Weekly
Ministry of Commerce Spokesman Gao Feng said that China will keep opening up and improving its business environment, to further optimize the structure and quality of foreign investment and maintain its overall scale. He said that there would be some pressure in attracting foreign capital this year, despite the steady growth in foreign investment during the first three months of the year. During the first quarter of this year, China’s actual use of foreign investment stood at CNY302.47 billion, up 39.9% on a yearly basis. Moreover, 10,263 enterprises with foreign investment were established during the period, up 47.8% on a yearly basis, 6.7% higher than in the same period in 2019.
According to a recent survey conducted by the Ministry, 96.4% of the more than 3,200 foreign-invested companies had a positive attitude toward future business prospects in the country, up 2.1 percentage points from the beginning of this year, according to MOFCOM Spokesman Gao. Western China registered a year-on-year growth of 91% in the actual use of foreign investment in the first quarter. The figures for East China and Central China were 38.2% and 36.8%, respectively. Gao said western China’s increasing attractiveness to foreign investors was largely due to the impact of new government policies, especially the new industry catalog, released at the end of last year, which encourages foreign investment. Under the new catalog, foreign-invested enterprises in the region that meet certain qualifications can enjoy income tax rebates, tariff exemptions on equipment imports for their own use, and preferential land supplies, said Gao.
Sixty-five items have been added to the national catalog, and 34 more items have been added as regional advantageous industries for western China, thereby expanding the alternatives for foreign investors, he said. Cui Fan, International Trade and Economics Professor at the University of International Business and Economics in Beijing, said China has demonstrated strong economic resilience during the pandemic. Its future growth potential, together with the continuous rollout of policy measures facilitating investment and enhancing the business environment, make it an attractive destination for foreign investment, the China Daily reports.
Huge potential exists for further cooperation between China and the European Union in fields like the digital economy and the green economy, Zhao Ping, Deputy Director of the Research Institute of the China Council for the Promotion of International Trade (CCPIT), said.
- KURT VANDEPUTTE (UMICORE) APPOINTED CHAIRMAN OF THE BOARD OF THE FLANDERS-CHINA CHAMBER OF COMMERCE (FCCC)
- Webinar: “Knowing Your Chinese Partner” – May 26, 2021, 10 am – 12 am
- EMA starts rolling review of CoronaVac, WHO approves Sinopharm vaccine for emergency use
- The Global Times warns not to politicize the Comprehensive Agreement on Investment (CAI)
- Hainan to become biggest duty-free market in the world