FDI climbs 1.9% through Oc­to­ber year-on-year

China Daily - - FRONT PAGE - By ZHONG NAN zhong­nan@chi­nadaily.com.cn

For­eign di­rect in­vest­ment in China’s non-fi­nan­cial sec­tors grew 1.9 per­cent year-onyear be­tween Jan­uary and Oc­to­ber to 678.7 bil­lion yuan ($102.19 bil­lion), the Min­istry of Com­merce said on Tues­day.

A to­tal of 26,174 newly funded for­eign com­pa­nies were es­tab­lished in the first 10 months, up 15.9 per­cent yearon-year, ac­cord­ing to a state­ment from the min­istry.

Ex­perts said that global in­vestor con­fi­dence was strength­ened by the coun­try’s on­go­ing sup­ply-side struc­tural re­form and other ini­tia­tives to fur­ther open the econ­omy.

Ea­ger to boost the coun­try’s ca­pac­ity to at­tract more for­eign cap­i­tal, the Min­istry of Com­merce abol­ished a reg­u­la­tion on the re­view and man­age­ment of rep­re­sen­ta­tive of­fices of for­eign business in China in Septem­ber, as well as con­tin­u­ing to urge many do­mes­tic busi­nesses to deepen re­form and break their mo­nop­oly oper­a­tions.

The reg­u­la­tion, is­sued in 1995, in­cluded strin­gent rules for for­eign en­ter­prises, such as the need for writ­ten ap­plica tions to es­tab­lish rep­re­sen­ta­tive of­fices in China and the need to reg­is­ter within 30 days when they re­ceived ap­proval, or it would be in­valid.

These moves aim to deepen re­form in stream­lin­ing ad­min­is­tra­tion, del­e­gat­ing power and op­ti­miz­ing ser­vices, said Li Guanghui, vi­cepres­i­dent of the Chi­nese Academy of International Trade and Eco­nomic Co­op­er­a­tion in Beijing.

Against the back­drop of the gov­ern­ment’s pledge to build an international and fair business en­vi­ron­ment to fur­ther at­tract for­eign in­vest­ment, Li said new poli­cies will help im­prove the business en­vi­ron­ment and boost China’s at­trac­tive­ness to global in­vestors.

Even though east­ern re­gions con­tin­ued to at­tract most FDI, its growth was ris­ing at a much faster pace in land­locked cen­tral and western prov­inces and re­gions. They at­tracted 50.6 bil­lion yuan in FDI dur­ing the 10-month pe­riod, surg­ing 47.9 per­cent on a year-on-year ba­sis.

High-tech man­u­fac­tur­ing at­tracted 56.65 bil­lion yuan in FDI from Jan­uary to Oc­to­ber, up 22.9 per­cent year-on-year, while the high-tech ser­vice sec­tor gained $95.01 bil­lion in FDI, up 20 per­cent.

Lin Gui­jun, a pro­fes­sor at the Univer­sity of International Business and Eco­nom­ics in Beijing, at­trib­uted the fast FDI growth to ef­fec­tive pol­icy that has boosted for­eign in­vestors’ con­fi­dence, as well as the ac­cel­er­ated process of in­dus­trial re­struc­tur­ing. A num­ber of key man­u­fac­tur­ing projects launched in Septem­ber and Oc­to­ber also boosted the ag­gre­gate vol­ume.

Lin said there will be a con­tin­ued ef­fort to at­tract FDI in the fu­ture as open­ing up and re­form con­tin­ues and high­level free trade zones are com­pleted.

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