Actualized foreign investment flows into China reached a new high in 2021, Shu Jueting, Spokesperson for the Ministry of Commerce (MOFCOM), told reporters. Last year, the country's actualized use of foreign investment β excluding that in the banking, securities and insurance industries β rose by 14.9% year-on-year to reach CNY1.15 trillion, equivalent to a 20.2% rise in U.S. dollar terms to USD173.48 billion, setting a new record. The actual use of foreign investment in the high-tech sector grew by 17.1%, while the services sector received CNY906.49 billion of foreign investment, up 16.7% from the prior year. Countries and regions along the routes of the Belt and Road Initiative booked a 29.4% rise in their investment in China, while the ASEAN countries' investment flows into the country soared 29%.
The new record suggests that China might remain atop the global rankings for foreign investment recipients, although a recovery in the U.S. economy over the past year could have drawn inflows to the U.S. as well, Bai Ming, Deputy Director of the International Market Research Institute at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times. China unseated the U.S. as the world's largest recipient of foreign direct investment (FDI) in 2020 despite a plunge in global FDI amid the coronavirus' onslaught, according to the UN Conference on Trade and Development (UNCTAD). China brought in USD163 billion in FDI inflows in 2020, versus USD134 billion attracted by the U.S., the UN numbers showed. In 2019, the U.S. attracted USD251 billion in inflows, compared with USD140 billion received by China.
Looking ahead, MOFCOM aims for a more proactive and effective use of foreign investment, Shu said. MOFCOM aims to steer foreign investors into advanced manufacturing, modern services, emerging technologies, low-carbon projects and the digital economy. Moreover, free trade ports and free trade pilot zones are expected to play a larger role in appealing to foreign investors. Major economic and trade fairs such as the China International Import Expo (CIIE), the Canton Fair, and the China International Fair for Trade in Services (CIFTS) will be tapped to attract more foreign investment. The Ministry also pledged to improve one-on-one tracking services for key foreign firms and projects, and to address issues of concern to businesses such as facilitating entry of personnel into the country. In addition, efforts are in the pipeline to remove rules that are non-compliant with the foreign investment law and its implementation regulations, ensuring foreign businesses are treated fairly. Spokesperson Shu also cited the complaints mechanism for foreign firms to increase protection of the legitimate rights and interests of foreign investment and stabilize foreign investors' expectations and confidence about their investment in the country, the Global Times reports.
