China will always be a hot spot for overseas investment: official
Published: Sep 15, 2022 07:08 PM
The 22nd China International Fair for Investment and Trade Photo: VCG

The 22nd China International Fair for Investment and Trade Photo: VCG

When asked to comment on the phenomenon of some overseas companies moving part of their capacity out of China, an official from the Ministry of Industry and Information Technology (MIIT) said on Thursday that China respects market rules while welcoming overseas companies to invest in the country. 

"We think it's a normal economic phenomenon that some companies would adjust their production lines for reasons like exploring new markets or readjusting their business layout," Wang Wei, the MIIT official, said at a press conference on Thursday.

Wang said that China's determination to expand high-level opening-up and share with the world its development opportunities will not change. 

"China is and will always be the hot land for overseas investment," he said.

The official's comments came at a time when overseas media outlets are hyping that some foreign-invested companies are planning to shift some of their manufacturing out of China. 

For example, the Financial Express recently cited Indian Finance Minister Nirmala Sitharaman as saying that many foreign companies are seeking to relocate from China, and India is emerging as a favorite destination for them.

A recent Bloomberg report noted that overseas companies have been "highlighting plans" to relocate production (in China) for reasons like coronavirus restrictive measures. 
However, data from different sources showed that the situation is complex. According to Wang, China had nearly 60 leading overseas-funded projects each with investment of more than $1 billion in the manufacturing sector, which bring their total investment in the country to more than $200 billion.

Their projects cover major industries like electronics, information, green energies and auto-making, Wang noted.

China used overseas capital amounting to 1.15 trillion yuan ($164 billion ) in 2021, up 14.9 percent on a yearly basis and setting a new record high, a spokesperson from the Ministry of Commerce said earlier this year.

A Reuters report on Thursday noted that a handful of large corporations from Europe, particularly Germany, are actually "doubling down on their bets" in investment in China, a report from research organization Rhodium Group showed.

Wang said that China will continue to push high-level opening-up in the manufacturing sector and create a more attractive investment environment, while jointly safeguarding the stability of global industrial and supply chains. 

Global Times