Foreign direct investment (FDI) into the Chinese mainland soared to an all-time high of CNY877.56 billion in 2017, up 7.9% from 2016. The substantial rise in FDI illustrates the country’s continued efforts to improve the overall business environment for foreign investors, the Ministry of Commerce (MOFCOM) said in a statement. FDI into the high technology industry was notably strong, up 61.7% from a year earlier. “The steady momentum of FDI was attributed to government measures like easing restrictions in China’s 11 free trade zones (FTZs) and simplified procedures for investment,” said Tang Wenhong, Director General of the Ministry of Commerce’s Department of Foreign Investment Administration (FIA).

The number of newly established foreign companies rose to 35,652 last year, up 27.8% year-on-year. Foreign companies, which comprised less than 3% of the total firms operating in mainland China, contributed to a quarter of the country’s manufacturing business profits and one-fifth of tax revenue, according to MOFCOM. Last December, FDI into the Chinese mainland fell 9.2% year-on-year to CNY73.94 billion.

Non-financial outbound direct investment (ODI) in 2017 decreased nearly 30% year-on-year to USD120.08 billion. “The sharp decline reflects the effective reining in of irrational outbound investment,” said Li Guanghui, Vice President of the Chinese Academy of International Trade and Economic Cooperation in Beijing. Overseas investment in real estate, hotels, cinemas and entertainment has been limited, while investment in sectors such as gambling was banned. Outbound investment to countries and regions involved in the Belt and Road Initiative totaled USD14.36 billion in 2017, the China Daily reports.