A worker is busy on a paper production line at a paper production company in Chishui City, southwest China's Guizhou Province, May 16, 2020. With the bamboo forest reaching an area of more than 1.3 million mu (about 86,667 hectares), Chishui City has made great efforts to develop the bamboo industry. By the end of 2019, the city had nearly 400 bamboo processing companies, creating an output value of 6.19 billion yuan (about 872 million U.S. dollars). (Photo by Han Xianpu/Xinhua)

Issues involving China's industrial chain should not be "overly politicized" and foreign companies' supply chain decisions are based on economic rules rather than the will of an individual, Chinese officials said on Wednesday.

The comments came after US lawmakers and officials reportedly crafted a proposal for a $25 billion "reshoring fund" to push US companies to move operations or key suppliers out of China. 

 "I believe every entrepreneur will make the right judgment and right choice," said Miao Wei, China's industry and information technology minister (MIIT), at a press briefing of the State Council, China's cabinet, on Wednesday. He noted that industrial chain moves follow economic rules, meaning companies generally choose to set up industrial chains in places closer to big markets and where costs are lower.

He said China has a complete industrial chain and a massive market, which makes it very attractive to foreign investors. About 40 percent of foreign companies plan to expand their investments in China in recent days, per a survey conducted by MIIT, according to Miao. 

"Those who disregard objective rules will face punishment by the rule," Miao said. He also warned that as there are few companies in the world that can independently supply products across the whole industrial chain, firms that chose to move their supply chains out of China would need to "double down efforts" if they want to reenter the market. 

While voicing strong objection to unilateralism and trade protectionism, Miao stressed that China's commitment to opening up will not be altered and the Chinese government will strive to create a better and fairer market environment for enterprises. 

"We're confident that we can stabilize industrial and production chains," Miao said.

In April, actual use of foreign investment in China soared 11.8 percent year-on-year to 70.36 billion yuan ($9.9 billion), according to data released by the Ministry of Commerce.

Global Times