By Kong Dechen, People\u2019s Daily Overseas Edition<\/p>\n
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While global foreign direct investment (FDI) collapsed significantly in 2020, China\u2019s inbound FDI grew against the trend by 4 percent to $163 billion, indicating that the country surpassed the U.S. as the largest recipient of FDI in the world, according to the latest Investment Trends Monitor of the United Nations Conference on Trade and Development (UNCTAD).<\/p>\n
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Data from China\u2019s Ministry of Commerce (MOC) showed that the country\u2019s total volume, yearly increment, and global share of inbound FDI all climbed last year.<\/p>\n
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In particular, the country\u2019s actually used FDI totaled 999.98 billion yuan (about $152.9 billion) in 2020, up 6.2 percent from the previous year, while the paid-in FDI in China\u2019s non-financial sector grew by 4.5 percent year on year, ranking first in the world, according to the MOC, which also revealed that a total of 39,000 foreign-invested enterprises newly registered in China in 2020.<\/p>\n
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The continued growth in the amount of paid-in foreign investment in China against the trend of shrinking FDI worldwide has been accompanied by the country\u2019s constant efforts to open its door wider to the rest of the world.<\/p>\n
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\u201cWhen economic globalization has been hindered by headwinds and protectionism and unilateralism are on the rise, China\u2019s notable growth in actual use of foreign investment has proven the huge attractiveness and growth potential of the Chinese market,\u201d said Cui Fan, a professor of the School of International Trade and Economics, University of International Business and Economics.<\/p>\n
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Such achievement is the result of the country\u2019s effective response to the COVID-19 pandemic and earnest implementation of relevant policies and measures, which sped up the restorative growth of the Chinese economy and made the country the world\u2019s only major economy that achieved positive growth amid the raging COVID-19 last year, Cui said.<\/p>\n
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Factors such as lower market access threshold for foreign investment and continuously improving business environment are closely related to China\u2019s achievements in attracting foreign investment and have signaled the country\u2019s resolve to unswervingly expand its opening-up during the new development stage.<\/p>\n
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The super-large Chinese market is becoming more and more attractive to foreign investors as Chinese residents\u2019 income rises steadily, the country\u2019s middle-income group has constantly expanded, and the trend of consumption upgrading has continued to gain momentum.<\/p>\n
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\u201cChina has given play to its advantage as the world\u2019s factory and exerted strong manufacturing capabilities amid the COVID-19,\u201d Cui said.<\/p>\n
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\u201cThe Eurostat pointed out that among the top ten largest trading partners of the European Union (EU), the EU saw positive growth in two-way trade only with China last year, which proves that China\u2019s strong economic recovery has laid a solid foundation for its trade growth with the EU and that the resilience and vitality of China\u2019s manufacturing sector should not be underestimated,\u201d Cui said.<\/p>\n
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\u201cChina has become the biggest trading partner of the majority of countries and regions in the world. This is already a fact,\u201d Cui said, adding that the fact shows the great appeal of the Chinese market and that in the international trade arena, China can be called the center of manufacturing in the world and the hub of global value chain.<\/p>\n
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China, also the world\u2019s largest exporter, has complete industrial chain systems and is one of the few economies in the world with a complete range of industries, according to Cui, who believes that with the continued growth in the size of China\u2019s economy and the implementation of measures such as the ones for expanding imports, China is going to show more and more advantages in manufacturing and foreign trade, and the Chinese market will be opened wider and wider to the world.<\/p>\n
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China is facing considerable challenges in stabilizing foreign investment this year. On the one hand, multinational corporations may find themselves unable to make investments as their wealth shrank significantly due to the COVID-19. The UNCTAD estimated that global FDI fell by 42 percent in 2020.<\/p>\n
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On the other hand, global industrial and supply chains are being restructured after the outbreak of the COVID-19, which poses new challenges to China\u2019s efforts to utilize foreign investment.<\/p>\n
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The MOC will further improve China\u2019s business environment, earnestly implement the Foreign Investment Law and regulations for the implementation of the law, as well as the working mechanisms for handling complaints filed by foreign-invested enterprises, and strengthen protection for the legitimate rights and interests of foreign investors, said Wang Wentao, China\u2019s Minister of Commerce.<\/p>\n
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The MOC will continue to create a market-oriented, law-based, and internationalized business environment and ensure that foreign investors enjoy better environment, better development, and greater accomplishments in China, Wang added.<\/p>\n","protected":false},"excerpt":{"rendered":"
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