China is ramping up its initiatives to welcome more high-quality foreign investment, as announced by Ling Ji, vice minister of the Ministry of Commerce (MOFCOM), during a recent press conference.
Ling emphasized that a key priority for 2025 is to attract increased foreign direct investment (FDI) into the country's listed companies. To achieve this, China plans to optimize regulations related to establishing investment firms, streamline the procedures for foreign mergers and acquisitions, and support foreign enterprises in participating in the nation’s new wave of industrialization.
Statistics show a positive trend in foreign investment. By the end of 2023, China hosted 465,000 foreign-funded enterprises, marking an increase of 46,000 since 2019. In 2024 alone, 59,000 new foreign-funded enterprises were established, reflecting a year-on-year growth of 9.9 percent, according to Zhu Bing, director of the Department of Foreign Investment Administration at MOFCOM.
Despite some multinational corporations scaling back their operations in China, the overall number of foreign enterprises continues to rise. As of 2024, nearly 1.24 million foreign-funded enterprises have been established, with the actual use of foreign capital reaching a staggering 20.6 trillion yuan ($2.83 trillion).
Ling highlighted the multifaceted benefits of attracting and leveraging foreign investment. These include the advancement of technologies and management practices, promotion of economic development across various regions, increased tax revenues, creation of numerous jobs, enhancement of living standards, and a richer supply of goods and services.
Reference(s):
MOFCOM: Encouraging more high-quality foreign investment in China
cgtn.com
