China's FDI inflow in Jan-May hits 412.51 billion yuan
Published: Jun 22, 2024 12:18 AM
FDI Photo: CFP

Photo: VCG

Foreign direct investment (FDI) into China from January to May 2024 reached 412.51 billion yuan ($56.81 billion), with the number of newly established foreign-backed companies reaching 21,764, up 17.4 percent year-on-year, China's Ministry of Commerce (MOFCOM) announced on Friday.

The FDI in the manufacturing sector hit 117.11 billion yuan, accounting for 28.4 percent of the national total, and 2.8 percentage points higher than last year's level. FDI in the high-tech manufacturing sector reached 50.41 billion yuan, accounting for 12.2 percent of the total, and up 2.7 percentage points compared to the same period last year. This shows the nation's structure for foreign investment is continuing to improve, said MOFCOM.

Notably, FDI in smart devices manufacturing saw a 332.9 percent year-on-year jump, and the professional technical services industry recorded a 103.1 percent year-on-year increase.

FDI inflows from Germany saw a 24.2 percent year-on-year increase during the period, and FDI from Singapore increased 16.2 percent year-on-year.

MOFCOM also said that the latest surveys from the American Chamber of Commerce in China, the European Union Chamber of Commerce in China, and the Japanese Chamber of Commerce and Industry in China show that more than three-quarters of American, European, and Japanese companies plan to continue their operations in China.

Data from the National Bureau of Statistics (NBS) showed that large foreign-backed industrial enterprises saw an average revenue increase of 16.7 percent year-on-year, higher than the national average of 4.3 percent.

In the first five months of 2024, China's consumer goods retail sales reached 19.52 trillion yuan, up 4.1 percent year-on-year, according to the NBS.

China's State Council, the cabinet, in March 2024 announced a 24-point action plant to enhance the appeal and effective utilization of foreign investment, as part of the country's efforts to harness and share its huge market potential.

With the implementation of a series of policies and measures, China's investment environment will be further improved, said a MOFCOM official, noting that foreign investors can support China's economic growth momentum.

In May of this year, Schneider Electric celebrated the delivery of 500 millionth TeSys product in Shanghai, a milestone for the company's operations in China. 

China plays as the role of innovation source and robust supply base for Schneider Electric, as the company currently has 22 factories and 7 development centers in China, over 1,600 local suppliers and an over 90 percent local procurement rate. 

"We will continue to leverage its digital technology expertise and sustainable development advantages to create more high-quality products that are to help Shanghai and the whole of China accelerate the process of modern industry," said Ren Jing, senior vice President, head of low voltage energy management business with Schneider Electric.

On Wednesday, McDonald's China celebrates over 30 years of high-quality and sustainable broiler chicken farming. After McDonald's entered Chinese mainland, it actively introduced and developed local suppliers to ensure high-quality, stable and sustainable supply of broiler chickens. The company introduced and implemented high-quality and sustainable broiler chicken farming concepts and requirements, leading the industry's development for more than 30 years.