China sees record foreign direct investment inflow in H1

BEIJING (XINHUA) – Foreign direct investment (FDI) into the Chinese mainland saw rapid growth in the first half (H1) of this year amid a string of government policies to improve the business environment, the Ministry of Commerce said yesterday.

FDI into the Chinese mainland, in actual use, surged 28.7 per cent year on year to a record high of CNY607.8 billion in H1. In US dollar terms, FDI jumped 33.9 per cent year on year to USD91 billion, said Zong Changqing, an official with the ministry.

The growth pace was the highest in almost 10 years in both yuan and US dollar terms, Zong noted.

“China’s FDI growth in H1 beat market expectations, laying a solid foundation for achieving the country’s goal of keeping foreign investment stable for the whole year,” Zong told a press conference.

In H1, 23,000 foreign-invested companies were set up, a year-on-year increase of 47.9 per cent, bringing the total number of foreign-invested firms to over 1.06 million, data from the ministry showed.

The country’s 21 pilot free trade zones, covering less than 0.4 per cent of the country’s land area, attracted nearly 17 per cent of the total FDI in H1.

Foreign capital flocked into China’s high-tech industries, with FDI into the high-tech manufacturing sector surging 29.2 per cent and that into the high-tech service sector jumping 42.7 per cent, the data showed.

The number of big foreign investment projects with contract values over USD100 million increased 81.3 per cent year on year to reach 602.

China has rolled out a string of policies this year to keep foreign investment stable, introducing financing support and tax incentives for foreign firms while expanding pilot opening-up programmes.

The country also hosted various trade and investment exhibitions to facilitate business exchanges and organised events to address the concerns of foreign companies.