China's Ministry of Commerce (MOFCOM) is set to enhance the landscape for foreign investment, aiming to attract more high-quality foreign direct investment (FDI) into the country's listed companies by 2025.
At a press conference on Thursday, Ling Ji, vice minister of MOFCOM, emphasized the need to improve the level of services for foreign investors. \"Optimizing regulations for establishing investment companies, streamlining rules and procedures for foreign mergers and acquisitions, and supporting foreign enterprises in participating in China's new industrialization process are key priorities,\" Ling stated.
According to Zhu Bing, director of the Department of Foreign Investment Administration at MOFCOM, China housed a total of 465,000 foreign-funded enterprises by the end of 2023, marking an increase of 46,000 since 2019. In 2024 alone, 59,000 foreign-funded enterprises were established, reflecting a year-on-year growth of 9.9 percent.
Despite some multinational corporations retreating from the Chinese mainland, the overall number of foreign enterprises continues to grow. As of 2024, nearly 1.24 million foreign-funded enterprises operate in China, with the actual use of foreign capital reaching 20.6 trillion yuan ($2.83 trillion).
Ling highlighted the multifaceted benefits of attracting and utilizing foreign investment, including the advancement of technologies and management practices, promotion of economic development across various regions, increased tax revenues, job creation, improved living standards, and a richer supply of goods and services.
Reference(s):
MOFCOM: Encouraging more high-quality foreign investment in China
cgtn.com
