China remains attractive destination for foreign investment

China's inbound foreign investment has improved both in quality and quantity, the People's Daily reported on Monday.

Bloomberg quoted a survey from HSBC saying 97 percent of 2,174 foreign companies intend to keep investing in China mainly due to the country's sizable market, expectations for continued economic growth and well-developed supply chains.

According to the Ministry of Commerce, foreign direct investment into Chinese mainland, in actual use, increased 15.9 percent year-on-year to 1.04 trillion yuan ($157.2 billion) in the first 11 months of this year.

The country's attractiveness for foreign investment in technology is growing, as is the proportion of foreign investment in high-tech manufacturing and service industries, the People's Daily reported citing Bai Ming, a researcher with the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce.

The high-tech industry has become the "main engine" to attract foreign investment, Bai said.

Moreover, Central China is becoming more attractive to foreign investment, with lower factor costs than those in East China, as well as more complete support facilities than those in West China.

Official data showed FDI, in actual use, jumped 15.4, 25.8, and 13.4 percent year-on-year in East China, Central China and West China from January to November of this year, respectively.

In addition, foreign investment from countries and regions involved in the Belt and Road Initiative continues to grow, and their trust in the Chinese market is improving, Bai said.

Multiple factors have built to these trends, Bai said.

First, the ongoing global COVID-19 outbreak meant international investment markets have shrunk, with overseas investors urgently seeking high-quality investment targets and opportunities.

China's effective epidemic prevention and control and economic stability and recovery have boosted foreign investors' confidence. Therefore, more and more overseas investors are turning their eyes to China.

Second, as the country continues to optimize the investment environment, investment liberalization and facilitation have been greatly enhanced.

Third, China continues to widen market access for foreign investment. The country released the 2021 negative list for foreign investment on Monday, which cut the number of items on the list to 31 from 33, according to the National Development and Reform Commission and the Ministry of Commerce.

In the future, China should promote the integration of foreign investment policies with industrial policies in important industries such as the digital economy, healthcare, pension, new energy, biotechnology and new medicine, Bai said.

Furthermore, the country should make efforts to encourage foreign investment, and attract foreign investment to support industrial development, as well as share its development dividends and great opportunity with overseas investors, Bai added.