The Ministry of Commerce (MOC) said it will create a better business environment for foreign investment

2022-05-04 0 By

International online News (reporter Zhu Wanling) : Data released by the Ministry of Commerce shows that China’s foreign investment absorption in 2021 increased rapidly, with actual use of foreign investment exceeding one trillion yuan for the first time in the whole year.China will continue to open up to the outside world at a higher level in 2022, step up efforts to attract foreign investment and create a better business environment to make the country a hot destination for foreign investment, an official with the Ministry of Commerce said on Thursday.German companies in China remain confident in the growth of the Chinese market, according to a recent survey jointly released by the German Chamber of Commerce in China and KPMG.In the survey, 49 percent of German companies plan to build new production facilities in China, 47 percent plan to increase investment in RESEARCH and development, 37 percent plan to increase production automation, and 30 percent plan to strengthen digital transformation, according to Andreas Glentz, managing partner of KPMG’s International practice in Germany.”About 71 percent of the companies surveyed said they would continue to expand their investments in China,” Glentz said.”The proportion of companies planning to increase investment in R&D increased by 15 percentage points from last year’s survey.”In 2021, China’s inward investment increased rapidly, with actual inward investment exceeding 1.1 trillion yuan for the first time in the year, up 14.9 percent. 48,000 new foreign-funded enterprises were established, up 23.5 percent. Both the scale and quality of inward investment were improved.Guo Tingting, director general of the Comprehensive Department of the Ministry of Commerce, said that China’s fdi absorption in 2021 shows the characteristics of continuous optimization of the structure and rapid growth in the number of large projects.”High-tech investment increased by 17.1 percent to 30.2 percent,” Guo said.Investment in major sources of investment grew steadily.Investment from countries along the Belt and Road increased by 29.4%.Investment from Singapore and Germany increased by 29.7% and 16.4% respectively.The number of major projects with contracted foreign investment of USD 50 million and USD 100 million increased by 26.1% and 25.5% respectively.Remarkable results have been achieved in opening up the highlands.Foreign investment actually reached 213 billion yuan in the 21 pilot free trade zones, accounting for 18.5 percent of the total foreign investment.”It is analyzed that in 2021, China will unswervingly expand its opening-up, introduce a number of measures to stabilize foreign investment, and further optimize the market-oriented and law-based international business environment.Looking ahead to 2022, Chen Chunjiang, director of the Department of Foreign Investment Management under the Ministry of Commerce, said China will continue to expand high-level opening-up, improve support policies, improve service levels, accelerate institutional opening-up and create a better business environment to stabilize foreign investment.”We will implement the 2021 negative list for foreign investment in China and pilot free trade zones, ensure that opening-up measures in auto manufacturing and other sectors are effective, and attract more investment from multinational companies,” Chen said.We will revise and expand the Catalogue of Industries to Encourage Foreign Investment, make full use of preferential policies on land and taxation, and encourage more foreign investment in advanced manufacturing, modern services, high and new technologies, green and low-carbon industries, the digital economy, and the central and western regions.We will strive to create a better business environment and make China a hot destination for foreign investment.”