Foreign investment plays a crucial role in a nation's development, driving enterprise growth, creating jobs, and enhancing living standards. China, as a resilient economic powerhouse, is experiencing a surge in foreign direct investment (FDI).
International investors are increasingly confident in making investments in China. From 2019 to 2021, China set three consecutive records for incoming foreign investment. In the first 11 months of 2022, FDI surpassed 1.16 trillion yuan ($164.278 billion), marking a historic high. Moreover, from January to November 2023, the number of foreign investment-backed firms in China grew by 32.1% year-over-year, reaching 41,947.
Despite global economic challenges, China is expected to continue attracting significant FDI, thanks to its strategic position as a global manufacturing and trading hub, pro-liberal business policies, robust supply chains, and a favorable business environment. Reforms such as expanding visa-free entry, shortening negative lists for foreign investment, offering favorable tax rates, and enhancing infrastructure development further solidify China's appeal to international investors.
With ongoing reforms and policies that boost private sectors, coordinate macroeconomic policies, and foster international industrial cooperation, China remains a top destination for foreign direct investment, driving innovation and economic growth.
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China's growth momentum in inbound foreign investments will continue
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