FDI up 10% in January, displaying strong appeal of Chinese market
Published: Feb 20, 2023 09:24 PM
Lujiazui, a financial zone in Shanghai Photo: VCG

Lujiazui, a financial zone in Shanghai Photo: VCG

China's actual use of foreign direct investment (FDI) rose 10 percent year-on-year to $19.02 billion in January, with the high-tech manufacturing sector showing particular attractiveness, official data showed on Monday.

Chinese observers said the figure indicated the increased appeal of the world's second-largest economy amid stronger prospects for growth after the optimization of COVID-19 management.

The attraction of China, backed up with a mass consumption market, will draw more foreign-funded companies this year, they said.

According to data from the Commerce Ministry on Monday, FDI in the high-tech manufacturing sector surged 74.5 percent year-on-year. 

Use of foreign capital in manufacturing in general rose by 40.4 percent, while FDI in high-tech industries increased by 62.8 percent.

By region, eastern China recorded a 13.4 percent increase in the actual use of FDI, with 25.9 percent for central China and 21.6 percent for western China.

Growth momentum picked up from last year, when FDI hit $189.13 billion, rising 8 percent in US dollar terms. 

International organizations and investment banks have raised their projections for China's economic growth in 2023 following an impressive recovery of consumption in January and February.

The Chinese economy is projected to grow 5.2 percent year-on-year in 2023, the IMF said in its latest World Economic Outlook. Some economists expect GDP growth of up to 6 percent, buoyed by the country's optimized pandemic response and effective pro-growth policies, injecting confidence and impetus into growth.

Top executives from multinational companies are travelling back into China with the country's recent reopening, even as the tech competition between China and the US is intensifying.

According to the Wall Street Journal, Volkswagen AG's chief executive visited China from late January to early February, the company said, while Apple CEO Tim Cook and Pfizer Inc CEO Albert Bourla are expected to visit China next month. Ola K?llenius, Mercedes-Benz Group AG's chairman, also plans a visit to China.