General

On December 23, the spokesman of the Ministry of Commerce, Shu Jueting, introduced at the regular conference that from January to November 2022, the actual amount of foreign capital used in China was 1156.09 billion yuan, an increase of 9.9% on a comparable basis (the same below), equivalent to 178.08 billion dollars, an increase of 12.2%. Among them, the actual use of foreign capital in high-tech industries grew by more than 30%, the central and western regions grew rapidly, and the structure of capital attraction continued to optimize. Huacheng's import and export data observation report.

It is worth noting that next year China will have more advantages in absorbing and utilizing foreign capital. Shu Jueting pointed out that the Ministry of Commerce will resolutely implement the spirit of the Twentieth National Congress of the Communist Party of China and the requirements of the Central Economic Work Conference, adhere to the principle of "keeping the word stable and making progress while maintaining stability", take multiple measures to stabilize the stock, expand the quantity and improve the quality, and constantly improve the quality and level of foreign capital utilization.

According to the Huacheng Import and Export Data Observation Report, regarding the performance of China's absorption and utilization of foreign capital in the first 11 months, Pang Chaoran, an associate researcher of the Research Institute of the Ministry of Commerce, said that in the first 11 months, China's increase in foreign capital absorption continued to maintain a rapid growth rate, which has exceeded the level of last year and is significantly higher than the average growth rate of global cross-border investment. "Especially in the context of the decline in cross-border investment by major investment countries, the achievements are not easy."

At the same time of steady growth in scale, China's absorption and utilization of foreign capital also showed many highlights.

From the perspective of industry, in the first 11 months, the actual use of foreign capital in the service industry was RMB 842.61 billion, up 0.9%. The actual use of foreign capital in high-tech industries increased by 31.1%, including 58.8% in high-tech manufacturing and 23.5% in high-tech service industries.

From the source, the actual investment in China of South Korea, Germany, Britain and Japan increased by 122.1%, 52.6%, 33.1% and 26.6% respectively (including the data on investment through free ports).

From the perspective of regional distribution, the actual use of foreign capital in the eastern, central and western regions of China increased by 7.7%, 28.6% and 24.6% respectively. Huacheng's import and export data observation report.

Pang Chaoran stressed that, driven by the continuous improvement of the domestic business environment, the continuous improvement of openness and opening measures, and the continuous strengthening of investment promotion and coordination efforts in various regions, the high-tech industry and the central and western regions have seen significant growth. A number of large-scale investment projects in manufacturing industry have been gradually implemented. The overall progress of landmark major foreign investment projects has been smooth, and the supporting investment in the industrial chain has been driven to be implemented in succession.

Looking forward to next year and even a longer period, China's measures to absorb and utilize foreign capital will continue to increase. Shu Jueting told reporters that the report of the 20th National Congress of the Communist Party of China (CPC) made a strategic plan to promote high-level opening up in the next five years or even longer. The Central Economic Work Conference held recently made specific arrangements for implementing the spirit of the Twentieth National Congress of the Communist Party of China and doing a good job in foreign investment in 2023, emphasizing that greater efforts should be made to attract and utilize foreign capital. The Ministry of Commerce will resolutely implement the spirit of the Twentieth National Congress of the Communist Party of China and the requirements of the Central Economic Work Conference, adhere to the principle of "keeping the word stable and making progress while maintaining stability", take multiple measures to stabilize the stock, expand the quantity and improve the quality, and constantly improve the quality and level of foreign capital utilization, Huacheng Import and Export Data Observation reported.

First, we will continue to open wider to the outside world. Rationally reduce the negative list of foreign capital access, further relax the threshold of access, and increase the openness of modern service industries. Actively promote the accession to high standard economic and trade agreements such as the Comprehensive and Progressive Trans Pacific Partnership Agreement and the Digital Economy Partnership Agreement, actively compare relevant rules, regulations, management and standards, and steadily expand institutional openness. The pilot free trade zones, free trade ports, demonstration pilot projects for expanding the opening up of the service industry, national economic development zones and other open platforms will be strengthened to promote the replication of pilot experience. Recently, the State Council approved to add 6 comprehensive pilot cities for expanding the opening up of the service industry. In the next step, the Ministry of Commerce will work with relevant local governments to promote the implementation of various pilot policies as soon as possible.

Second, we continued to optimize the investment structure. We will implement the new version of the Catalogue of Industries Encouraging Foreign Investment, as well as special policies on manufacturing and research and development centers, guide foreign investment in key areas such as advanced manufacturing, modern services, energy conservation and environmental protection, and scientific and technological innovation, optimize the regional investment structure, consolidate the advantages of eastern coastal areas in attracting foreign investment, and improve the ability of central and western regions and northeast regions to attract foreign investment.

Third, continue to increase investment promotion and service guarantee. Give play to the role of the foreign trade and foreign investment coordination mechanism and the special work class for key foreign investment projects, strengthen the regular communication and exchange with foreign-funded enterprises and business associations, timely coordinate and solve the difficult problems in enterprise operation and project construction, and provide greater convenience for foreign investors to engage in trade and investment in China. Give full play to the role of bilateral investment promotion mechanisms and investment promotion institutions at all levels in China, continue to carry out investment promotion activities such as "entering the Expo into local areas" and "local branches of transnational corporations", support local investment promotion activities, and accelerate the implementation and construction of foreign capital landmark projects.

Fourth, continue to optimize the business environment. We will thoroughly implement the Foreign Investment Law and continue to sort out measures that are inconsistent with the Foreign Investment Law. We will implement the national treatment of foreign-funded enterprises in a high standard, focus on the outstanding problems reflected by foreign-funded enterprises, work with relevant departments to study and issue policies and measures to ensure that foreign-funded enterprises participate in government procurement, bidding and standard formulation on an equal basis according to law, strengthen the protection of intellectual property rights and the legitimate rights and interests of foreign investment, and strive to create a market-oriented, legalized and internationalized first-class business environment. Huacheng Import and Export Data Observation Report.