Foreign investment in Q4 to remain stable in China: MOFCOM official
Published: Nov 05, 2020 12:20 PM

Shanghai. Photo: VCG

A Chinese official predicted that the foreign investment in the fourth quarter will maintain the current stable and positive trend, given a strong economic performance. 

From Jan to Sep, China's actual use of foreign capital was $103.26 billion, a year-on-year rise of 2.5 percent, and in yuan terms, it was up 5.2 percent, the first time seeing a growth in both yuan and dollar terms since the pandemic outbreak, and continues to grow amid global headwinds, Zong Changqing, an official from the Ministry of Commerce (MOFCOM), said on Thursday.

Zong said it has proved that China's super-large-scale market's attractiveness to foreign investment has not changed, its comprehensive competitive advantages in industrial facilities, human resources, and infrastructure have not changed, and foreign investors' long-term investment and business expectations and confidence in China have not changed.

Unless there are special circumstances, it is expected that the current stable and positive trend will continue in the fourth quarter, and the goal of stabilizing foreign investment for the whole year will be achieved, he added. 

Data from MOFCOM showed that in 2019, China's actual use of foreign investment amounted to $141.23 billion, a record high, an increase of 2.1 percent over the previous year, ranking second in the world.

China has become a "stabilizer" and "safe haven" for global multinational investment since the beginning of this year, amid the huge impact of the epidemic.

Global foreign direct investment (FDI) flows fell 49 percent in the first half of 2020 compared to 2019, due to the economic fallout from COVID-19, reveals UNCTAD's latest report released on October 27.

The FDI in the US, Singapore, Vietnam, and India fell by 61 percent, 28 percent, 16 percent and 33 percent respectively, while in China it only fell by 4 percent in the first half of the year.

In a note sent to the Global Times on Wednesday, Christine Zhou, senior vice president and president of Region China at Novo Nordisk, said China's business environment is constantly improving, giving them confidence in the Chinese economy and the future prospects of the Chinese market.  

She said they will continue to increase investment in China and build up their  industry chain, including R&D, production, and operations.

Zong from MOFCOM said China will continue to expand its opening to the outside world during the 14th Five-Year Plan period, and  become a greater market shared by the world.