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China’s foreign investment keeps growing, led by high tech sector

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Beijing, May 24 (SANA)    The Chinese Ministry of Commerce has reported that the number of foreign invested companies in China has risen for the third year in a row, exceeding 530,000, while cumulative foreign direct investment (FDI) has surpassed 3.6 trillion dollars, reflecting continued investor confidence in the Chinese market.

According to statistics cited this week by China’s Xinhua News Agency, 20,113 new foreign invested companies were established in China in the first four months of this year, up 6.8 percent year on year. Over the same period, the actual utilization of FDI reached 287.69 billion yuan, down 10.3 percent compared with the same months last year, which officials attributed to temporary external factors rather than a fundamental shift in investor sentiment.

The data show that high technology industries led the growth, attracting 116.33 billion yuan in investment, a 20.3 percent increase, and accounting for more than 40 percent of total foreign investment in the country. This underscores the sector’s growing attraction for foreign capital amid China’s push toward innovation driven development.

The figures also reveal strong year on year growth in FDI from Luxembourg, Switzerland, France, and the United States, with increases ranging between about 24 percent and 110 percent, highlighting renewed momentum in certain advanced economy inflows.

The Ministry of Commerce stressed that it will continue to support foreign funded companies and address their complaints through regular dialogue channels, as trade relations between Beijing and Washington show signs of improvement following recent agreements reached between Chinese President Xi Jinping and U.S. President Donald Trump.

China announced on April 24 that it would allow foreign investors to participate in trading futures contracts on government bonds, part of wider measures aimed at further opening its financial markets and strengthening its role as a destination for international capital.

KhA



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