January 25, 2023
According to official data released, China’s inbound foreign direct investment (FDI) increased for a third year in a row in 2022, demonstrating that despite the pandemic, the nation is still a popular destination for foreign investment.
According to Chinese analysts, COVID had no effect on China’s appeal, which is supported by a large consumer market, a robust industrial sector, and an improving business environment. Many foreign-funded companies will continue to operate in the country for the foreseeable future.
Data from the Ministry of Commerce (MOFCOM) showed on Wednesday that FDI reached $189.13 billion in 2022, up 8% in US dollars and continuing stable growth. In 2021, FDI reached $173.48 billion, and in 2020, it reached $144.37 billion.
FDI increased 46.1 percent year over year to 323.7 billion yuan in the manufacturing sector. This industry contributed 26.3 percent of all FDI, up 7.8 percentage points from 2021.
According to the report, FDI in the high-tech sector increased by 28.3 percent and now makes up 36.1% of all FDI, up 7.1 percentage points from 2021.
With an increase of 15.3%, large projects with contractual FDI of over $100 million apiece collected 653.47 billion yuan. According to the MOFCOM, those projects accounted for 53% of China’s real usage of foreign money and significantly aided in stabilizing foreign investment.
According to experts, the expansion of FDI demonstrates that foreign investors have always had faith in the expansion and stability of the Chinese market.
According to Li Yong, deputy head of the Expert Committee of the China Association of International Trade, “the attraction of China’s long-term benefits, including an improved business environment and market conditions, had a significant influence.”
Source: Global Times
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