Foreign capital isn’t slamming the brakes on investing in China: MIIT

In response to rumors that foreign- funded firms are leaving China, the Ministry of Industry and Information Technology ( MIIT) said Tuesday that while certain industry chain relocation is a normal phenomenon, foreign investment in China has not slowed down and the nation remains a top destination for foreign investors.

The relocation of parts of the industry chain is a normal economic phenomenon in general, and a result of globalization and market mechanisms at work, Yao Jun, an MIIT official, told a press conference.

Though some foreign- funded firms have promoted a diversified layout, overall investment in China by foreign investors has not slowed down, Yao said, noting that China’s actual use of foreign capital reached 564.2 billion yuan ($ 83.5 billion) in the first five months of the year.

China’s manufacturing industry is increasingly attracting all kinds of resource factors, and more and more foreign capital is being invested in key areas such as advanced manufacturing, high and new technology, energy conservation and environmental protection, according to the official.

From January to May, the nation’s high- technology manufacturing sector saw its actual use of foreign capital surge 32.9 percent year- on- year.

Other indicators also show foreign investors’ growing interests in the Chinese market.

“The Chinese market remains one of the most significant global markets for German companies: 71 percent of companies intend to increase their investments here,” read a survey conducted by the German Chambers of Commerce Worldwide Network.

China will expand the highquality opening- up of the manufacturing sector and foster a market- oriented, law- based and internationalized business environment featuring fair competition, Yao said.