China remains attractive to foreign capital despite epidemic

BEIJING, Feb. 21 (Xinhua) -- The Ministry of Commerce (MOC) said Friday that China still has advantages in attracting overseas investment as the impacts of the ongoing novel coronavirus epidemic would not be lasting.

The outbreak has not undermined the confidence of most multinationals in investing in China, nor has altered their investment strategy, Zong Changqing, director of the Department of Foreign Investment Administration of MOC, told an online press conference.

The government is "confident and determined" to stabilize foreign investment this year, Zong said.

Foreign direct investment into the Chinese mainland saw a steady year-on-year increase of 4 percent last month, compared with a growth of 4.8 percent registered in January 2019. "The impacts of the outbreak on foreign investment have begun to show, and are expected to become greater in February and March," he said.

As China goes all out to contain the coronavirus outbreak, authorities have stressed efforts to help foreign-funded companies resume production and operation in an orderly manner.

A MOC circular last week stressed support for large foreign investment projects, calling for coordinated efforts to solve their difficulties and minimize the impacts of the epidemic.

Thanks to unremitting efforts, business activity has gradually recovered in the world's second-largest economy. Data showed that 32 auto parts factories invested by the Republic of Korea in eastern China's Shandong Province had all resumed production as of Feb. 15, in a move to stabilize the global supply chains. Over 80 percent of foreign-funded companies in Shanghai, Shandong and Hunan have already returned to business so far.

Zong said foreign-invested firms in most places are expected to resume production by the end of this month.

The ministry will guide local governments to help foreign-invested companies make full use of support policies, strengthen the protection of their legitimate rights and interests, widen market access for foreign capital and further improve the business environment, Zong said.