Train No. X9041, a China-Europe freight train, gets ready to leave for Kazakhstan from Xi'an International Port in Xi'an, northwest China's Shaanxi Province, April 13, 2021. (Xinhua/Li Yibo)
BEIJING, Dec. 8 (Xinhua) -- In the first 10 months of 2022, China's foreign direct investment (FDI) in actual use expanded 14.4 percent year on year, on a comparable basis, to 1,089.86 billion yuan, according to data released by the Ministry of Commerce recently.
Specifically, China's high-tech industries saw an increase of 31.7 percent from a year earlier in FDI in actual use.
Experts believe that China retains its strong appeal to foreign businesses thanks to the country's continued opening-up and improved business environment.
In a world plagued by gloomy investment sentiment, global investors "voted with their feet", proving that China remained a strong magnet for foreign investment.
-- Foreign entrepreneurs cast vote of confidence in Chinese economy
Foreign-funded companies remain upbeat about the Chinese market, revealed a survey conducted by the China Council for the Promotion of International Trade (CCPIT) recently.
According to the survey, major investment institutions around the world showed confidence in China, and nearly 80 percent of foreign-funded companies maintained their existing production and business scale. More than five percent of foreign-funded enterprises claimed that they have increased their investment in China.
The global outlook for cross-border investment is not optimistic. Despite this, from January to October 2022, FDI inflows still saw a steady increase in both quantity and quality and already approached the full-year figure of 2021, which fully demonstrates the strong appeal of China's market to cross-border investment, said Lin Meng, director of the Modern Supply Chain Institute under the Chinese Academy of International Trade and Economic Cooperation.
Data from the Ministry of Commerce showed that German investment in China grew at a rate of up to 30 percent in the first eight months of this year.
In the January-July period, the investment from the United States increased by around 36 percent, official data showed.
It is reported that Mercedes-Benz sold 61,664 cars in China in September, up 12.9 percent year on year.
Related surveys conclude that almost one in two companies in Germany's manufacturing industry depended on orders from China. Yet, in addition to a sales market and supplier, China is also an important investment destination. Approximately, 2,300 German enterprises have set up production, service, and sales offices in China.
If there is an economic conflict with China, some German companies will even go bankrupt, said German economic research institutes.
There is still a chance for Australian companies to enter China's huge market, according to a report released by an Australia-based research institution.
Some Australian business leaders think that China has great opportunities, especially for innovative companies, which should look beyond Australia.
-- Modern industrial system stimulates new growth drivers
The strong appeal of China's market lies in the new growth drivers stimulated by the accelerated construction of a modern industrial system.
Lin analyzed that in the first ten months, the FDI in actual use in China's high-tech industries surged by 31.7 percent from a year earlier. Specifically, FDI in high-tech manufacturing rose 57.2 percent from the same period a year ago, while that in the high-tech service sector surged 25 percent year on year. All of these indicate that China's industrial transformation and upgrading have achieved remarkable results, and the country has shaped an industrial foundation and innovation system matching the development of global high-tech industries.
According to Lin, transnational corporations aspire to grow with their counterparts in China and be benefited from China's economic transformation and upgrading in the frontier fields of scientific and technological innovation, green economy transformation, international cooperation in addressing climate change, digital economy development, and other sectors.
Liu Yunfeng, executive vice president of Volkswagen Group China, said the company was more concerned than ever about "in China, for China".
Since 2015, China has gradually taken the lead in the field of intelligent vehicles in the world. Other countries are faced with great challenges in overtaking China in technological innovation and implementation in the autonomous driving sector.
According to Liu, the Volkswagen Group will keep engaging in and contributing to the development of China's automotive industry and improve its competitiveness with the help of China's innovation.
Although affected by COVID-19 in the short term, in the long run, China's economic fundamentals have not changed as the country's industrial structure continues to optimize and upgrade, the momentum of technological accumulation and innovative development is strong, and the infrastructure is full-fledged and supportive.
In addition, China enjoys a solid industrial foundation, complete industrial supporting facilities, and low technological development costs. Foreign enterprises in China can enjoy a long-term and stable development environment, obtain more opportunities for investment in high-tech manufacturing and service industries, and better obtain the required support in various industries. All of these give rise to a continuous driving force for the increase in quantity and quality of FDI inflows in China.
-- Foreign investors remain upbeat about China's economic resilience
Attracting foreign investment is a window to observe a country's level of opening-up and a barometer of a country's economic vitality.
China's opening-up index increased by 5.6 percent from 2012 to 2020, becoming an important force in promoting economic globalization, according to the World Openness Report 2022 released at the fifth Hongqiao International Economic Forum in Shanghai.
EU Chamber of Commerce in China President Joerg Wuttke said that China's concrete measures to improve the business environment and encourage foreign investment have shown the international community China's determination to continue to open wider to the outside world.
At the same time, China's accelerated construction of a modern economic system will help its economy achieve higher quality and more sustainable growth, said Wuttke.
According to Zhao Chenxin, vice chairman of the National Development and Reform Commission, China's economy has transitioned from a phase of rapid growth to a stage of high-quality development, and the country is also faced with a new situation for attracting foreign investment.
Next, China will further encourage foreign investment in more industries and increase support for foreign investment in advanced manufacturing, modern service industry, high-tech, and energy conservation and environmental protection, as well as in areas in China's central, western and northeastern regions, Zhao noted.
Rajat Agarwal, vice president of Henkel, noted that China's high-level opening-up will offer more opportunities to foreign enterprises in China.
Agarwal pointed that Henkel is very bullish about the resilience and development prospects of China's economy. (Edited by Yang Yifan with Xinhua Silk Road, yangyifan@xinhua.org)
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