Accelerating The Withdrawal Of Foreign Capital From China? This Is Not The Case With The Latest Report Of Foreign Chambers Of Commerce

Sep 17, 2020

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In response to the "theory of withdrawal of foreign investment", Meng Wei, spokesman of the national development and Reform Commission, quoted two latest reports of major foreign chambers of Commerce on the 16th, saying that the confidence of foreign-funded enterprises to invest and operate in China for a long time has not changed.

At a regular news conference held on the same day, Meng Wei said that on September 9, the American Chamber of Commerce in Shanghai issued a report saying that most enterprises continued to be optimistic about the Chinese market, and 78.6% of the enterprises interviewed said that they would not transfer their investment in China, an increase of 5.1 percentage points compared with last year; on September 10, the European Chamber of Commerce of China issued a report saying that the overall investment situation of European Union enterprises in China was stable, only 11% of the surveyed enterprises took the test It is close to the lowest level in 10 years.

"These data further show that the long-term confidence of foreign-funded enterprises in China has not changed." She said.

The novel coronavirus pneumonia has seen a sharp decline in global direct investment this year. China has made overall efforts to promote epidemic prevention and control and economic and social development, and the utilization of foreign capital has gradually stabilized. According to the Ministry of commerce data, from January to August, China's actual use of foreign capital was 619.78 billion yuan, up 2.6% year-on-year; in August, China's actual use of foreign capital was 84.13 billion yuan, an increase of 18.7% year-on-year.

Meng Wei said that in recent years, affected by the rise in factor costs and other factors, some enterprises, including foreign-funded enterprises, have adjusted their production layout around the world. "It should be said that this phenomenon belongs to normal market behavior."

She said that China will further deepen its opening up to the outside world, stabilize the long-term development confidence of foreign investors in China, focus on the implementation of the negative list of foreign investment access, expand the catalogue of industries encouraging foreign investment, guarantee the service of foreign investment projects, and optimize the environment for foreign investment.